Question: I work for a small company where men and women do the same job but the men are paid more. The manager says that is because the men are more important, so they need more money. This is not fair. What can we do? PK, Dubai
Answer: The UAE law prohibits discrimination between men and women in the workplace in any way. This is also stated in the country's labour law.
Article 4 makes this clear: “Any discrimination on the basis of race, colour, sex, religion, national or social origin or disability, which would have the effect of nullifying or impairing equality of opportunity, or prejudicing equal treatment in the employment, the maintenance of a job and the enjoyment of its benefits, is prohibited. Employers are prohibited to discriminate against workers in jobs involving similar tasks.”
It goes on to say: “A woman is granted a wage equal to the wages of a man if she performs the same work, or an alternative work of equal value.”
Step one should be to point out the law to this old-fashioned employer. If the company fails to equalise salaries, the female employees can register a case with the Ministry of Human Resources and Emiratisation.
Q: I will be travelling out of the UAE soon and plan to use my credit card to pay hotel bills. I always get asked if I want to pay in my home currency or the local one but I never know which one to choose. Which is the best option? EK, Abu Dhabi
A: Credit card providers charge a foreign transaction fee but this is not the only cost you could be paying. The charges can be significant so it is important to be fully aware of the real cost of a foreign purchase.
If UAE dirhams is selected when given an option, the cardholder will usually have to pay what is known as “dynamic currency conversion”.
This is a process whereby the amount of the transaction is converted to the currency of the country of issue at the point of sale and it allows the merchant or bank to charge an additional amount. This amount will vary.
People will often request payment in the currency of the credit card but this is not the best option as the exchange rate will invariably be poor, thereby increasing the real cost of the items purchased. In such situations, it is better to select the local currency as the rate of exchange applied should be more favourable.
Q: I have been living in Dubai for a few years but in 2023, I spent quite a lot of time in England for family reasons. A friend has told me that I could be due to pay UK tax as I was there for three months, being more than 90 days. I am now worried, so can you tell me if that is the case and how do I sort this out as I am worried that I have some kind of tax bill to pay. DP, Dubai
A: The topic of UK residency and tax liabilities is broad and complex, so I can only provide a basic overview here.
It appears that DP’s friend is a little out of date as before the introduction of the Statutory Residency Test in 2013, most people could only spend 90 days in the UK each tax year before being deemed UK resident for tax purposes and thus liable for UK income tax on their worldwide income. That changed from April 6, 2013, with differing amounts of time permitted without changing tax status based on “connecting factors”.
DP has been a UAE resident since 2008 and spent 98 days in the UK in the 2023/24 tax year ending April 6, 2024. Days of arrival and departure are included in the number of days, which was previously not the case.
She owns a house in England but it has tenants and is not available for her use. She stayed with friends. Her husband also lives in the UAE and her children are adults.
This means that she can spend up to 182 days a year in the UK as she does not have connecting factors such as immediate family or a property she can live in.
The number of days also takes into consideration whether someone is leaving or arriving, how long they have been UK non-residents and other factors. In many cases, people can spend more days in the UK than in the past before being considered liable for British income tax on non-UK earnings.
This situation is simplified as DP resigned from her job before first travelling to Britain. If someone is in employment, other rules come into play if work is carried out when in the UK during time spent there, but that is another topic.
Keren Bobker is an independent financial adviser and senior partner with Holborn Assets in Dubai, with more than 30 years’ experience. Contact her at keren@holbornassets.com or at www.financialuae.com
The advice provided in our columns does not constitute legal advice and is provided for information only
