An employer can terminate the contract and impose Penalties

The employer has a right to impose on the worker for violating Law or breaching the Employment Law, by doing or sending WRITTEN NOTICE, WRITTEN WARNING, and Maximum 5 Days Deduction per month, 14 Days work suspension and N0n-Payment, stop paying the bonus amount, stopping the promotions etc. Last but not least the employee can also be terminated, but by adopting the Law. Article 39, UAE Labour and Employment Law allows the employer to use all above-mentioned options. Let’s summarize these points again here;

• Written Warning or Notice (2) Salary Deductions (3) Work Suspensions (4) Stopping the Promotions, Bonuses and Incentives (5) Terminations (6) Inquiries and Investigations (7) Filling Employment or other Civil Cases, in case if there has been a very serious breach.

An employer can put one or more penalties on Employees. But keep in mind it will be and it should be connected with work only. Anything which is not connected with work directly or indirectly or done other than the work, can’t be treated as part of JOB OBLIGATIONS, therefore there will be no penalty or condition imposed.

The employer also has the right to terminate the employee/s if he/she/they is/are violating the laws or rules. A notice period needs to be served unless there is an immediate termination due to some serious breach or crime. However, a notice period needs to be served and paid in most cases.

But if the employer is not paying the salary, then employees have the right to contact MOHRE and let them know about this injustice. Keep in mind that the date of entitlement of a claim and the date of cancellation of the VISA will only allow a claim to be valid until 1 year. Therefore, do not be hesitated while opening the court case against the employer if he is not paying salaries, or other rewards as per UAE Labour and Employment Law. Article 54 of Federal Law 33, 2023 explains that after a year any entailment becomes time-barred and unquestionable.

There might be two types of claims for an employee e.g. Labour Claims and Civil Claims. For example, unpaid profits, shares, dividends, return on investments or financial benefits other than salary, will be treated in Civil Cases in Civil Courts. From a partner’s perspective, he can mortgage his membership in the company to another partner or even a third-party outsider.

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