Ask the Law: Does employer have the right to suspend an employee?

Suspension of employee

Question: I work in a private company. Does the employer have the right to suspend the worker from work according to the new Labour Law in UAE? What are the reasons for suspension, according to the new Labour Law and do I have the right to object to it? Please advise.

Answer: According to Article 40 of Federal Decree-Law No 33 of 2021 on the regulation of labour relations, ‘The employer may suspend a worker temporarily from work for a period not exceeding 30 days, with the aim of conducting a disciplinary investigation, if the interest of the investigation so requires, with a suspension of half the wage during the period of suspension. If the investigation ends with reinstatement of the worker, owing to lack of violation, or if the worker is let off with just a warning, then the wage for the period of suspension will have to be paid back.

‘The employer may temporarily suspend the worker when he is accused of committing a crime of self-assault or any monetary misappropriation or crimes against honour or trust, until a final decision is issued by the judicial authority. His or her wages shall be suspended for the period of suspension and if a decision is issued not to bring the worker to trial, or his or her acquittal is ruled due to lack of a felony or the investigation ends up with insufficient evidence, then the employee must be returned to his or her job with full payment of the wages for the period of suspension.’

The employee has the right to appeal before the Ministry of Labour if he or she believes that the employer was abusive while imposing the penalties, including suspension.

Insurance claim

Question: Does the insurance company have the right to refuse to pay compensation on the grounds that the company was not informed about an accident at the time of its occurrence? Also, can the company deny compensation if the last premium was not paid to the insurance company despite it being due a month before the accident? Finally, if this was the second accident during the same year, can the insurance company deny compensation?

Answer: According to the Unified Motor Vehicle Insurance Policy Against Loss and Damage and The Unified Motor Vehicle Insurance Policy Against Third Party Liability: ‘The Company may not refuse to compensate the insured as a result of late notification of the accident, if the delay is attributed to an acceptable excuse.’

In case of any accident that gives rise to a claim according to the provisions of this insurance policy, the insured or the Motor Vehicle Driver shall notify the concerned authorities and the insurer within a reasonable period of time after the accident and furnish all documents and details pertaining to the accident, unless the delay is attributed to an acceptable excuse. The insured shall provide the insurance company, as soon as possible, with a copy of every claim, notice or judicial document once it is received.

Such condition is usually included in the insurance contract where the insured should adhere to and prove — in case it happened — that the delay in notification was for an acceptable excuse.

As for the delay in payment, there is no legal provision stating that the insurer might not bear his or her liability if the premium payment was delayed. However, the obligation of the insured, according to Article (1032) and the policies mentioned therein, is to pay the agreed premium amount on the term fixed in the contract or upon premium payment in exchange of the liability borne by the insurance company to fulfil its obligations. Moreover, the insurance company cannot refuse to pay just because it is the second accident during the same year because the insurance contract is a consensual contract that is binding on both sides.

Finally, the court will decide whether each party had implemented his or her obligations or not, on the basis of the documents submitted.