Did you have one of these clauses in your Expat Assignment Contract? | ExpatWoman.com
 

Did you have one of these clauses in your Expat Assignment Contract?

687
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EW GURU
Latest post on 27 July 2011 - 07:11

This is the clause....

[i]"Company X reserves the right, in its sole discretion, to amend, change, suspend, or terminate any benefit or other plan, program, practice or policy of Company X at any time. Company X does not have any obligation to, and nothing contained in these documents shall be construed as creating an express or implied obligation or promise on the part of Company X to, maintain, continue to offer, or make available such plans, programs, practices or policies."
[/i]
So it basically means that they can change anything at anytime for any reason. There is no dependability in the allowances advised as even within a month of arrival they could change them or take them away if the company sees fit. What I would like to know is -

is this a standard clause in other expat contracts? Did you / your DH have a clause like this in your contract?

Many thanks for your feedback. It is greatly appreciated.
<em>edited by Buy me a Pony on 27/07/2011</em>

438
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EW EXPLORER
Latest post on 27 July 2011 - 14:56
Yes, it a standard since the credit crunch :) But, depending on the post you are taking you can negotiate the terms. My DH had them change it to "may be amended or changed after a period of 1 year" or something like that. The point is that at least for 1 year they can't take anything out and in the meantime you can decide if this is the place for you. Hope this helps. Cheers :)
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EW NEWBIE
Latest post on 27 July 2011 - 14:49
I think there's a big difference between expats coming to Dubai on [i'>assignment[/i'> and those applying for jobs with no connection to their home country. BMAP is on assignment, with a portion of husband's salary still being paid in their home country so imo it's not quite the same as him quiiting his job in Australia and moving the family out here to try something new.. I think you need to take it up with HR of course, but if the company is secure (or at least as secure as any company can be at the moment lol) and he has a good name within it then if it was me i'd probably still come... We are also sort of on assignment, i'm not aware of any vague clauses in the UAE side of husband's contract but we were satisfied with the arrangements and felt our risk was limited because of his position in the UK company. A bit scarey talking of Bur Dubai before the poor woman has even got here !! Correct on all fronts Sue. And I hope BMAP doesn't mind me saying so, but her husbands company is a HUGE multinational , is a household name and I wouldn't be worried from that point of view myself.
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EW NEWBIE
Latest post on 27 July 2011 - 14:47
PS. Our contract is an expatriate contract, with our home base being our country of origin. I know there are also expatriate contracts which are local based and I don't have any experience to share about those. So your contract is subject to the application of your country law. BMP: What about your husband's contract? <em>edited by KB75 on 27/07/2011</em>
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EW MASTER
Latest post on 27 July 2011 - 14:47
I think there's a big difference between expats coming to Dubai on [i'>assignment[/i'> and those applying for jobs with no connection to their home country. BMAP is on assignment, with a portion of husband's salary still being paid in their home country so imo it's not quite the same as him quiiting his job in Australia and moving the family out here to try something new.. I think you need to take it up with HR of course, but if the company is secure (or at least as secure as any company can be at the moment lol) and he has a good name within it then if it was me i'd probably still come... We are also sort of on assignment, i'm not aware of any vague clauses in the UAE side of husband's contract but we were satisfied with the arrangements and felt our risk was limited because of his position in the UK company. A bit scarey talking of Bur Dubai before the poor woman has even got here !!
1575
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EW EXPERT
Latest post on 27 July 2011 - 14:43
am stuck on the "how can you sign a rental contract without a residency visa" to be honest..... This whole thread has more holes than a collinder!! My husband had a visa when he signed the lease. Where did I say he did not? So now you have a visa without a contract? Are you sure this is a global company? HR sounds like cr*p
687
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EW GURU
Latest post on 27 July 2011 - 14:41
am stuck on the "how can you sign a rental contract without a residency visa" to be honest..... This whole thread has more holes than a collinder!! My husband had a visa when he signed the lease. Where did I say he did not?
1097
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EW OLDHAND
Latest post on 27 July 2011 - 14:29
PS. Our contract is an expatriate contract, with our home base being our country of origin. I know there are also expatriate contracts which are local based and I don't have any experience to share about those.
648
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EW GURU
Latest post on 27 July 2011 - 14:13
That's a bit harsh, QF2011, the original post said they were told to sign the lease while they were here on a reccy, didn't say they actually signed it but what you wrote was a bit rude. Anyone who comes here, at this time especially, takes a big risk. Contracts often are worth nothing no matter what's written in them. I'll second that it is a bit rude, and for someone who has only been on the board 5 minutes (under that name anyway). There’s a big difference between being rude and stating the facts. I don’t see it as rudeness at all, I see it as making sure someone does not come to Dubai and potentially loose thousands of DHS because shes signed a contract that can be changed at any given time.
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EW OLDHAND
Latest post on 27 July 2011 - 14:13
We had a tenancy agreement signed before our residency permits came through (about 3 months before our residency permits). The company did it on our behalf. Sounds like you are a little bit burned by the poor handling of your transfer. However, most Intl. companies, do reserve the right to modify expat conditions, so I don't think that is too unusual (in our experience and friends experience). We have had it in our International assignment contracts now for over 10 years, so in our case it has nothing to do with the crises (Large multinational organisation). Our cost of living is modified every 3 or 6 months, there is also an exchange rate adjustment every 6 or 12 months. Country hardship status's can be modified thereby decreasing or increasing the hardship portion of your package. Housing can be modified up or down in accordance with the local market, (usually annually). Any of the nice to have perks can be changed at any time. Prior to our arrival, the company cancelled beach club membership and golf membership perks, those were cancelled unilateraly for everyone. My husbands company used to pay all facilities costs (electricty, water, phone etc), but that was recently capped and that was implemented immediately and across the board. What can not change is our salary, bonus structure, pension, healthcare etc. and also our right to be repatriated to our home country whenever we want to. In our case a the major changes (travel, car allowances, housing etc) are implemented for new expats while existing contracts remain for the duration of the assignment which is usually 3 years or less, but that is discretionary. Good luck. edited by mum2girls on 27/07/2011 <em>edited by mum2girls on 27/07/2011</em>
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EW GURU
Latest post on 27 July 2011 - 13:54
That's a bit harsh, QF2011, the original post said they were told to sign the lease while they were here on a reccy, didn't say they actually signed it but what you wrote was a bit rude. Anyone who comes here, at this time especially, takes a big risk. Contracts often are worth nothing no matter what's written in them. I'll second that it is a bit rude, and for someone who has only been on the board 5 minutes (under that name anyway).
127
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EW NEWBIE
Latest post on 27 July 2011 - 13:50
am stuck on the "how can you sign a rental contract without a residency visa" to be honest..... This whole thread has more holes than a collinder!! All BMAP threads are slightly odd. IMO
521
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EW GURU
Latest post on 27 July 2011 - 13:50
This clause (written with different wording in each company) started to appear after the crisis. If you do not feel confortable with, do not sign and do not come here. Just keep in mind that this is common here in UAE. Maybe it appeared after the crisis for your company but it has been around before that. :)
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EW NEWBIE
Latest post on 27 July 2011 - 13:40
My husbands contract has a similar clause (government by the way) and so does mine (multinational company).
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EW EXPERT
Latest post on 27 July 2011 - 13:30
am stuck on the "how can you sign a rental contract without a residency visa" to be honest..... This whole thread has more holes than a collinder!!
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EW GURU
Latest post on 27 July 2011 - 12:27
Hi BMAP, I think some of the comments on here so far have been a bit on the harsh side, although there is obviously some truth in some of what you've been told (although the attacks on your decision making skills have absolutely no relevance whatsoever!) IMHO, I would be wary about signing a contract that pretty much gives them a license to withdraw everything and leave you and your family high and dry in Dubai. Unfortunately such things can and do happen. However it may not happen of course! Neither me or my husband had clauses like that in our contract. Unfortunately no contracts out here seem to carry any weight, although if you are working for an international company I think you stand a better chance of getting a robust contract. Ultimately you just have to go with your gut feeling about how far you would trust this company. I'd also add that any ex pat, regardless of who employs them, should always have some sort of personal contingency in their own home country, such as a house, or a bank account, so that if the worst happens, you can get yourselves out easily and have access to funds without having to look to your employer for help. Ultimately, you have to take on responsibility for yourselves when you become an ex pat.
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EW NEWBIE
Latest post on 27 July 2011 - 12:26
BMAP - posters are only trying to help. In short, IMHO, that term makes a mockery of your contract, and I would not move to a region of volatile employment with that in my employment contract. Tell them to remove it, and guarantee your benefits along with salary, or they need to find your DH another position in Aus or make him redundant. You would certainly get a cracking pay out after 15 years.
687
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EW GURU
Latest post on 27 July 2011 - 12:16
Thank you all. And yes, we do make our own decisions. But we like to do so being informed, having gathered real life information from people who have been on or are on assignment. Hence, all I wanted to know from you was [u'>whether this was a standard clause[/u'> - whether you had it in your contract or not. That's all you need to advise. Quite simple really. If you have an issue with me going round and round - though I don't think I've asked this question before because until last night, in all the documentation we'd received there had never been a clause like this - then the solution really is quite simple. [b'>Click the next thread button and move on![/b'>
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EW NEWBIE
Latest post on 27 July 2011 - 12:15
Spot on QF........and no not unkind at all, just, as you say, blunt, but honest.
374
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EW EXPLORER
Latest post on 27 July 2011 - 12:11
Hi BMAP, Although I think QF could have said it in a more gentle way, she has pretty much said it all. Just make sure you are aware of all the risks should things go pear shaped. If all goes well you'll have a fab time, potentially. [b'>If things don't go so well.................people have ended up in jail :-([/b'> Just take care. And this is kinder? LOL I tend to agree with QF's reply.......especially the part about posting non-stop on the subject for months *sigh* yes its good to get others perspective but just going round and round in circles now and sometimes you just have to suck it up and make your own decisions like we all had to do at one time or another.......I hope that someone from the company hasn't been reading these posts and has easily been able to put two and two together.......doesn't look very professional IMO. edited by Pomegranate on 27/07/2011 edited by Pomegranate on 27/07/2011 Thanks I didn't think i had been unkind, rather just blunt and my mind is still boggling at the thought of anyone who would sign a house lease in their own name for quater of a mill (or near on) on the word of some numptie in HR without the final employment contract being signed and agreed by both parties. And most of all in this region with it's history over the last 3 years! Then as you state to post about it, many people have lost jobs from posting about the like on public forums. There is asking for advice and then there is.........................;)
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EW NEWBIE
Latest post on 27 July 2011 - 12:10
Hi BMAP, Although I think QF could have said it in a more gentle way, she has pretty much said it all. Just make sure you are aware of all the risks should things go pear shaped. If all goes well you'll have a fab time, potentially. [b'>If things don't go so well.................people have ended up in jail :-([/b'> Just take care. And this is kinder? LOL I tend to agree with QF's reply.......especially the part about posting non-stop on the subject for months *sigh* yes its good to get others perspective but just going round and round in circles now and sometimes you just have to suck it up and make your own decisions like we all had to do at one time or another.......I hope that someone from the company hasn't been reading these posts and has easily been able to put two and two together.......doesn't look very professional IMO. edited by Pomegranate on 27/07/2011 edited by Pomegranate on 27/07/2011 Well I tried my best Pom :-) Hard to make the truth sound nice......lol
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EW GURU
Latest post on 27 July 2011 - 12:05
Hi BMAP, Although I think QF could have said it in a more gentle way, she has pretty much said it all. Just make sure you are aware of all the risks should things go pear shaped. If all goes well you'll have a fab time, potentially. [b'>If things don't go so well.................people have ended up in jail :-([/b'> Just take care. And this is kinder? LOL I tend to agree with QF's reply.......especially the part about posting non-stop on the subject for months *sigh* yes its good to get others perspective but just going round and round in circles now and sometimes you just have to suck it up and make your own decisions like we all had to do at one time or another.......I hope that someone from the company hasn't been reading these posts and has easily been able to put two and two together.......doesn't look very professional IMO. edited by Pomegranate on 27/07/2011 <em>edited by Pomegranate on 27/07/2011</em>
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EW NEWBIE
Latest post on 27 July 2011 - 11:59
Hi BMAP, Although I think QF could have said it in a more gentle way, she has pretty much said it all. Just make sure you are aware of all the risks should things go pear shaped. If all goes well you'll have a fab time, potentially. If things don't go so well.................people have ended up in jail :-( Just take care.
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EW EXPERT
Latest post on 27 July 2011 - 11:58
I agree with blue cow whatever your contract says it's worth nothing out here they chop n change whenever they want...... It may as well be written in sand ....
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EW EXPERT
Latest post on 27 July 2011 - 11:56
May I just also add that signing a contract that is not 100% water-tight on allowances and moving to Dubai at this particular juncture is VERY DANGEROUS. The world may be on the verge of a second Lehman Bros with many of the worlds major ecomomies faltering. It really is NOT the time to be moving to an economy that is a) in bed with the States and b) entirely driven by real estate and construction. Really, you should stay put <em>edited by derien on 27/07/2011</em>
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EW EXPLORER
Latest post on 27 July 2011 - 11:48
BMAP if you signed a lease without signing your new employment contract, then yes i do think you are naive about this region, International company or not. After the crisis it has been the advice of all the relocation / legal experts et al to come, rent a serviced short term apartment and hire cars for the first few months or at least until probation period is over. There is good reason why there is this advice. I have never heard of anyone ever signing a house lease in their own name prior to signing an employment contract, ever ever ever. His mentor told your DH to sign, because it will be alright? And this same mentor is employed by the company? right so that's to be 100 % trusted then. Do you know exactly how many expats have got into trouble finanically here and the ethics of employment in this region? Profits or no profits! Your salary had better be enormous TBH because if this company decides not to pay any of your allowances or change them you will be up Dubai creek without a paddle. If you were not concerned and have so much faith in the company why have you been posting non stop for months on this subject? Do you think the timeframe this has taken is normal? Who is running HR? Why is this being allowed to happen and why is this obvious breach of labour law in most civilised contracts being allowed into International contracts? These are questions you need to ask yourself. I hope it works out for you, but only you and your DH can way up the risks and take the gamble, and that's what expat life is a gamble. <em>edited by QF2011 on 27/07/2011</em>
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EW EXPERT
Latest post on 27 July 2011 - 11:30
Sounds a sensible and pragmatic way forward. I wouldn't eb overly concerend given that this is an international company, it's doing well and he already works for them. As I said, it's standard with my company...if they ever tried anything on I'd escalate it straight to the EMEA level. I'd feel differently about a local organisation though.
687
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EW GURU
Latest post on 27 July 2011 - 11:15
Thank you all for your feedback. We have learned this afternoon it is also a standard paragraph in our company's assignment contracts and as someone pinted out, the GFC was probably the catalyst. His internal mentor has this afternoon told him that yes, we've had a lousy time, but if he were in the same boat, he would sign the contract and go. The commpany is not at risk. It is a household name with record profit in the last quarter and a share price that is higher than it's been in the last 10 years. Fair suck of the sav QF... We are not stupid. Do you think we did this on a whim? His company were telling us back in April we needed to come do the look-see and get rental accommodation. Before we'd even been advised of the assignment allowances! We refused. We waited till they gave us [b'>all [/b'>the allowances [b'>in writing[/b'> and a 75 page assignment booklet outlining all their assignment policies and provisions. We even renegotiated some of the out of pocket expenses that were not covered by the allowances or policies, and had that [b'>in writing[/b'> too from someone very senior. That has now been rescinded. Then, at their urging, in June, looked for rental accommodation and did not sign a lease before getting it [b'>in writing[/b'> from their HR dept [b'>NUMEROUS [/b'>times and verbally NUMEROUS times, that we were OK to do that. It is not a new company. He has been with them for many years since they headhunted him from somewhere else. Up until the last 6 months, we have had no reason to distrust them or not take them at their word - be it verbal or written - which in this case, it was both. For clarity, I need to state that the paragraph quoted in the OP only refers to the allowances and clauses covering his assignment in Dubai, [b'>not [/b'>his total remuneration package which will continue to be paid back in Australia. <em>edited by Buy me a Pony on 27/07/2011</em>
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EW NEWBIE
Latest post on 27 July 2011 - 11:05
Neither my husband's contract nor mine contains such a clause.
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EW EXPLORER
Latest post on 27 July 2011 - 11:01
A company putting such a clause in to their new employees contracts is in trouble and unsure of the future, that's quite a risk to take as a family. <em>edited by QF2011 on 27/07/2011</em>
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EW EXPLORER
Latest post on 27 July 2011 - 10:59
That's a bit harsh, QF2011, the original post said they were told to sign the lease while they were here on a reccy, didn't say they actually signed it but what you wrote was a bit rude. Anyone who comes here, at this time especially, takes a big risk. Contracts often are worth nothing no matter what's written in them. BMAP wrote; Today is a different story, our trust is gone, but we are pretty [b'>much boxed into a corner having done our orientation visit and being told we had to sign a lease while we were [/b'>there etc. Accordingly they did sign a lease without having signed an employment contract with Terms & conditions agreed first. As you quite rightly state coming here you take a risk, therefore coming with such an outrageous clause in your contract exacerbates that risk to non viable level. Contracts are worth something i have known many people take their employers to labour court in the last 12 months and won their cases prior to court due to their contracts. But with such a large loophole you would never win a labour case should you have to take your employer to court.
 
 

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