Labor law grants employers the authority to impose Disciplinary penalties on employees, but this power is not without limitations. It is governed by specific conditions and procedures outlined in the labor law and its implementing regulations. In the following sections, we will explore the detailed regulations surrounding this significant authority given to employers.
Conditions for Imposing Disciplinary Penalties:
The disciplinary penalties shall be imposed on employees taking into account the imposition of the appropriate penalty according to the gravity and seriousness of the committed violation i.e the penalty must be proportionate with the breach committed, pursuant to the following criteria:
- The extent of the breach of confidentiality of work-related data and information.
- The impact of the violation on the health and safety of the worker(s) at the establishment.
- The financial impact of the violation.
- The impact of the violation on the reputation of the establishment and its workers as a result of the committed violation.
- The violating worker’s abuse of the power vested in him.
- The rate of recurrence by the worker of all kinds of violations.
- The existence of a penal or moral side to the committed violation.
Types of Disciplinary Penalties:
The Employer or his representative may impose any of the following penalties to the Employee who violates the provisions of this Decree-Law, its Implementing Regulation and the decisions issued in implementation thereof:
- Written notice.
- Written warning.
- Deduction from Remuneration without exceeding the Remuneration of (5) five days per month.
- Suspension from Work for a period not exceeding (14) fourteen days, and non-payment of Remuneration for the days of suspension.
- Deprivation of the periodical increment for a period not exceeding one year, for the Establishments that adopt the system of periodical increments, and the Worker was entitled to the same in accordance with the provisions of the Employment Contract or the Establishment’s regulations.
- Denial of promotion, in the Establishments having a promotion system, for a period not exceeding two years.
- Dismissal from service while preserving the employee’s right to an end-of-service gratuity.
Procedure for Imposing Disciplinary Penalties:
Disciplinary Penalties cannot be imposed without:
- Informing the employee in writing of the charges.
- Taking the employee’s statement and investigating their defense.
- Documenting the disciplinary proceedings in a report added to the employee’s file.
- Notifying the worker in writing of the penalty, its type, amount, reasons, and potential consequence for recurrence.
- No disciplinary penalty may be imposed on the Worker for an act he committed outside the Workplace unless it is related to Work.
- It shall not be permissible to impose more than one disciplinary penalty for a single violation, in accordance with the provisions of Article (39) of this Decree-Law.
Statute of limitations for Imposing Disciplinary Penalties:
- An employee cannot be charged with a violation detected more than 30 days prior to conducting the disciplinary investigation.
- No disciplinary penalty can be imposed more than 60 days after the investigation is completed.
Employee’s Right to Grievance:
- Employees can file a grievance against any imposed penalty without facing retaliation as a result of such grievance.
- The employer must inform the worker of the outcome of their grievance.
Grievance System Requirement:
Employers with 50 or more employees must:
- Establish an accessible system for complaints and grievances.
- Ensure the system allows employees to file grievances.
- Provide written and justified decisions regarding the grievances within a specified period.
Notable Case Precedents:
In a recent case before the Dubai Appeal Courts, where the matter was not escalated to the Cassation Court due to it falling below the jurisdictional threshold, the court annulled a Final Warning disciplinary penalty issued by the employer against an employee for allegedly breaching employment obligations. This annulment was based on the principle of proportionality, despite the employer’s compliance with the procedural requirements for imposing such a penalty. The court found that the investigation conducted did not provide sufficient evidence to substantiate the breach attributed to the employee and thus warranting the imposed penalty. This ruling outline the court’s authority to review and ensure compliance with both the substantive and procedural elements of imposing disciplinary penalties under the Labor Law and its implementing regulations.
Seek Legal Counsel
Our expertise in Employment law and its regulations allows us to provide clients with effective and accurate advice, tailored to their business needs. Additionally, our experience and knowledge in handling employment disputes enable us to represent clients in court proceedings.
For further information, please contact, Bassem Ehab on Bassem.ehab@habibalmulla.com
