I had worked in a company for more than four years. A month ago, my company filed a police complaint alleging that I had embezzled money from the company which is untrue and malicious. My complaint was forwarded by the police to the Public Prosecution. The Public Prosecution appointed an expert to make a report. The complaint is under investigation by the Public Prosecution and my passport is in police custody. Two weeks ago, my employer suspended me and asked me not to come to work until the Public Prosecution closes the investigation. My employer also told me that he was going to stop my salary. My question here is: As per the UAE Labour Law, does the employer have the right to suspend me and stop my salary in the light of the complaint? Do I have the right to get a compensation in case the authority concerned finds that the complaint filed by the employer is malicious?

Article 112 of the Federal Labour Law No. 8 of 1980 states: “A worker may be temporarily suspended from work if he is accused of committing a deliberate offence involving assault on a person or property or crimes relating to honour and honesty or the offence of unlawful strike. The period of suspension shall run from the date on which the incident is reported to the competent authorities and until the latter have given a decision in the case. The worker shall not be entitled to his remuneration in respect of the period of suspension. Where it is decided not to take the worker to the court or the worker is acquitted, he shall be reinstated in his work; he shall be paid his remuneration in full for the period of suspension if it was maliciously contrived by the employer.” The questioner, as per the UAE Labour Law, has the right to file a criminal case against the employer in case the authority concerned finds that the complaint is malicious. The questioner also has the right to file a civil case in this regard to demand a proper compensation for the damages.


How is gratuity calculated?

I have been working in a company based in Dubai for more than three years. I would like to know how the end-of service gratuity is calculated and whether the commission paid by the company is also added to the basic salary. My company used to give me bonus at the end of each year. I work around 14 hours overtime in a week. As per the UAE Labour Law, are the overtime pay and bonus included when calculating the end of service gratuity? Is the gratuity calculated based on the salary mentioned in the original employment contract or the current salary? Last year, my basic salary was changed twice.

Article 134 of the Federal Labour Law No. 8 of 1980 states: “Without prejudice to what is provided for by some laws on the granting of pensions or retirement benefits to employees in some establishments. Severance pay shall be calculated on the basis of the remuneration last due to the worker for those who are paid monthly, weekly or daily basis, and on the average basis of the daily remuneration referred to in Article 57 of this law for those who are paid at piece rate. The remuneration used as a basis for the purpose of calculating severance pay shall not include what is given to the worker in kind, and housing allowance and transport and travelling allowances, overtime pay, representation allowances, cashier’s allowances, children’s education allowances, allowances for recreational and social facilities, and any other allowances or increments”. As per the article mentioned, only the current basic salary will be taken into account.


Questions are answered by advocate Mohammad Ebrahim Al Shaiba of Al Shaiba Advocates and Legal Consultants.