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What are the penalties an employer can impose on an employee?

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Staff Writer, TLR

Published on July 14, 2023, 17:41:00

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UAE, LAW, kadenboriss, labourcode, labour, penalty, employee, employers, wage, deductions,  obstacles, benefits,  ministryoflabour, lawyers

As per the UAE Labour Code, a penalty cannot be imposed without informing the employee and conducting the subsequent investigation. An employee shall be notified in writing of the penalties, as well as the grounds for their imposition.
The penalties, as per Article 39 of the Federal Labour Law no. 33 of 2021, are:
(a) Written notice
(b) Written warning
(c) Deduction of wage (not more than 5 five days per month)
(d) Suspension from work for a period not exceeding 14 fourteen days and non-payment of wage on those days.
(e) Deprivation from the periodic bonus for a period not exceeding 1 year (According to the provisions of the employment contract or the establishment’s regulations).
(f) Deprivation of promotion for a period not exceeding 2 years
(g) Termination of service while preserving the worker’s right to end-of-service benefits.

None of these penalties shall be imposed on the employee without informing him in writing of the charges against him, as well as hearing his statements and defence, and recording the foregoing in a report to be deposited in his private file and annotated with the penalty at its end. 

The worker shall be notified in writing of the penalties, as well as the grounds for their imposition and the penalty in case of recurrence. 
These sanctions are internal, which means the employer doesn't need to inform the Ministry of Labour after the penalty is imposed.

The employer shall draw up a schedule of penalties clarifying each of the disciplinary sanctions set out in the law. The worker may not be accused of a violation that was detected more than 30 days ago, and no disciplinary sanction may be imposed more than 60 days after the date of completing the investigation of the violation and establishing it against the worker, who shall have the right to file a grievance claim with the management for the penalty imposed against him.

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