Question 1: I am employed with a private company in Dubai as a salesman with a limited contract. I took up a job with the company in 2010. Two months ago, the company imposed a fine on me citing a mistake on my part. My manager deducted my salary for a period of 15 days and issued a written warning stating that my service will be terminated if such mistake is repeated. Is the employer entitled by law to deduct the employee’s salary in case of a violation and also issue a simultaneous written warning? What is the maximum salary deduction permitted under law? What are the penalties that the employer may impose on the employee in accordance with the labour law or ministry rules in case of a violation? Please advice.
Answer 1: I would like to clarify to you that Article No 102 of the Federal Labour Law No 8 of 1980 states that: “The disciplinary measures that an employer or his representative may impose on the workers shall be as follows:
1. Warning
2. Fine
3. Suspension from work with reduced pay for a period not to exceed 10 days.
4. Denial or deferment of periodical allowance, in firms applying such a scheme.
5. Denial of promotion, in establishments applying a promotion scheme
6. Dismissal without prejudice to severance pay.
7. Dismissal with denial of all or part of the severance pay. This penalty may not be imposed for reasons other than those exclusively specified in Article 120 hereof. As for the question on the maximum fine, based on the Article No 104 of the same law, the maximum fine is 5 days’ remuneration only. Finally, I would tell the questioner that, as per the law, such penalty may not be applied unless after conducting a written investigation with the employee and notifying the latter of such penalty in writing.
Absconder complaint
Question 2: A reader in Dubai asks: I have been terminated from the job by my employer; I was working with my company for more than 3 years. Their reason being due to market conditions the company is facing financial problem, and my performance is also rated low. They are saying I’m not working hard and had not tried to get more business from the market. But that charge is not right, that is only an excuse and has no proof. They terminated my services in February this year with immediate effect. They told me not to come to the office and they would let me know when to get my end of service benefits.
I have received one month gross salary for the one-month notice period. In my labour contract my notice period is for 3 months. One month later, I referred to my company asking for end of service benefits and they informed me that it will be paid upon cancellation of my visa. I came to know that my company made an absconding complaint against me in the labour ministry. Really it was my mistake when I believed my company when they told me not to come for work verbally.
My contract is for an unlimited period.
My question is have I been arbitrarily dismissed? As per the labour law can I request my company to pay a compensation for that? I tried to convince the labour ministry that the absconders complain made by my sponsor is false, but they did not accept my objection and told me that I should prove that in labour court.
Answer 2: I would like to clarify to you that you might have been dismissed arbitrarily especially since the company did not explain and prove the legal reasons for dismissing you, as the excuse of the market problem is not sufficient reason for a company to dismiss you in this manner. As for your rights, you are entitled to end-of-service dues as per the law + 3 months notice period and possibly an arbitrary dismissal compensation which would be determined by the competent court. Finally if the labour court judgment says that you have been arbitrarily dismissed, the labour ministry as per that judgment might lift the absconder complaint
