Ask the Law: When does an employer have the right to suspend a worker?

Suspension from work

Question: According to the new UAE Labour Law, when does an employer have the right to suspend a worker? What is the length of the suspension and will the employee be unpaid for the period of suspension? Does the worker have the right to resign during this period? Please advise.

Answer: Article (39), regarding Disciplinary Sanctions, gives the employer or his or her representative the right to suspend a worker who violates the provisions of this Decree-Law, its Implementing Regulation and resolutions issued for its Implementation, allowing suspension from work for a period not exceeding 14 days and non-payment of wage for the suspension days.

Moreover, Article (40) of the new UAE Labour Law regarding ‘Temporary Suspension from Work’ states:

1. The employer may suspend the worker temporarily from work for a period not exceeding 30 days, in order to conduct a disciplinary investigation with him if the investigation so requires, along with suspending half the wage during the suspension period. If the investigation concludes nonviolation or punishment of the worker by way of warning, then the worker shall be paid the wage for the suspension period.

2. The employer may temporarily suspend the worker from work when he or she is accused of committing a crime of assault on oneself, money or crimes related to breach of honour or trust, until a final judgement is issued by the competent judicial authority. His or her wages shall be suspended for the period of suspension from work. If a judgement is issued for not subjecting the worker to trial, if he or she was acquitted for absence of felony or the investigation concluded that there was lack of evidence, then he or she shall be returned to work, along with his or her full suspended wage.

Some Rules for Imposing Disciplinary Sanctions are stated in Article (41) as follows:

1. It is not permissible to impose any disciplinary sanction on the worker for an action committed by him or her outside the workplace, unless it is related to work.

2. It is not permissible to impose more than one disciplinary sanction for a single violation, according to the provision of Article (39) hereof. The worker has the right to resign during the period of suspension as per law.

Delay in handing over of property

Question: I bought a property from a developer three years ago and currently the completion is only 30 per cent. My question is, according to Dubai real estate law, what is the maximum delay allowed under UAE law for a developer to delay handing over a property? Am I legally entitled to file a lawsuit to cancel the purchase contract, given that I am have committed myself to making all the payments according to the purchase and sale contract? Please advise.

Answer: The law does not allow the developer any delay in handing over the property. The sale and purchase agreement governs the relationship between the developer and the buyer and it also determines whether the developer is late in completing the construction.

The contract shall be implemented, according to the provisions contained therein and in a manner consistent with good faith. If the developer breaches his or her obligations and does not comply with the completion date agreed upon, then the purchaser shall have the right to file a case to terminate the purchase agreement and request for compensation under Article 272 of the civil transaction law, which states:

1. In bilateral contracts, if one of the parties does not perform his or her contractual obligations, then the other party may, after serving a formal notification to the debtor, demand the performance of the contract or its rescission.

2. The judge may order the debtor immediate performance of the contract or grant him or her specified additional time, as he or she may order rescission with damages, if deemed justified.

When a contract is rescinded, the two contracting parties shall be reinstated to their former position, prior to contracting. If that is impossible, then the court may award damages under Article 274 of the same law.

It is decided in Supreme Court “[court shall] assess whether the seller has been late in the implementation of his or her contractual obligations, and that this delay amounts to what leads to the buyer’s response to the request for the termination of the contract or not, and the assessment of the corresponding binding obligations of the two sides is one of the issues of realty that is related to the court”. [Dubai, on 20-04-2021, in Cassation No 5/2021, the General Authority of the Court of Cassation.]