Question
As per the UAE Labour Law, what are the employers rights to take disciplinary action against employee misconduct? Our employer used to cut 15 to 20 days wages from the salary. Does an employer have the right to do this and what is the maximum period for which salary can be cut?
Answer
According to the UAE Federal Law No. 8 of 1980, as amended, the Labour Law provides clear provisions to employers to take disciplinary action against their employees. This is covered in detail in the chapter six of the UAE Labour Law from the Article no. 102 until Article no. 112.
“There are certain cases where an employer may fine or even dismiss an employee for misconduct and breach of duties, and it is important for all employees to understand the circumstances when these penalties can be imposed.
According to Article 102 of the UAE Labour Law, there are disciplinary rules that an employee should be aware of, however Article 102 states that disciplinary rules may be imposed by the employer or their representative in the following forms: disciplinary penalties which may imposed by the employer or its agent upon its employees are as follows; a warning; fine; suspension from work with reduced pay for a period not exceeding 10 days; forfeiture or deferment of periodic increment; forfeiture or deferment of promotion; dismissal from service but reserving right to end-of-service benefits; dismissal from service together with forfeiture of all or part of the benefits, provided that the penalties shall not be imposed for reasons other than those specifically prescribed in Article no. 120 of this law.
Question
I am a partner in an LLC Company. I am planning to sell my share to my son and my wife and get out from the company as a partner. My question is what is the procedure as per the law to sell my share? Please advise.
Answer
The Company Commercial Federal Law no. 2 for the year 2015, Article no. 80 “Procedures of Assignment of the Partner’s Share in the Company” mentions the following:
1. If a partner wishes to assign his share to a person who is not a partner, with or without consideration, such partner shall notify the other partners through the manager of the company of the assignee or the purchaser and the terms of the assignment or the sale. The manager shall notify the partners as soon as he receives the notice.
2. Every partner may demand to pre-empt the share as set forth in clause one of this article within thirty (30) days from the date of notifying the manager of the agreed price. In the event of dispute on the price, such share shall be assessed by one or more experts with technical and financial experience in the subject matter of the share, as nominated by the competent authority on demand by the applicant for pre-emption and at his expenses.
3. If the right of pre-emption is used by more than one partner, the share(s) offered for sale shall be divided among such partners pro rata to their respective shareholdings, subject to the provisions of Article (76) of this law.
4. If the period as set forth in clause two of this Article has lapsed without use of the pre-emption right by a partner, the relevant partner shall be free to dispose of his share.
