[UAE] Labour law clarification on disciplinary action and work loans [UAE] Labour law clarification on disciplinary action and work loans

[UAE] Labour law clarification on disciplinary action and work loans
12 Mar 2019
UAE labour law does not allow more than 10 days suspension from work with reduced pay, Gulf News reports.

Responding to a Q&A with readers, Gulf News clarifies key points of UAE labour law. The disciplinary penalties employers can impose are detailed and it confirms that employers cannot suspend an employee with reduced pay for longer than 10 days. Terms for repayment of employer loans and an employer’s right to reduce a worker’s salary are also detailed.

According to terms set down in UAE Federal Law No. (08) Of 1980, Article No. 102, the penalties an employer is allowed to give a worker in a disciplinary case include:
  • A warning
  • A fine
  • Suspension from work with reduced pay for a period not exceeding 10 days
  • Forfeiture or deferment or a periodic increment, in an establishment having an increment scheme
  • Forfeiture or promotion, in establishments having a promotion scheme
  • Dismissal without prejudice to severance pay
  • Dismissal with forfeiture of all or part of the severance pay
The final penalty can only be imposed on the grounds expressly specified in Article 120 of the Law.

UAE Federal Law No. (08) Of 1980, Article No. 60 defines an employer’s right to deduct funds from a worker’s salary and sets the limits on monthly repayments for an employee taking out a company loan. It states that no amount of money may be deducted from a worker’s remuneration in respect of private claims, except in the following cases:

  • The recovery of advances or amount of money paid to the worker in excess of his entitlements, on condition that the amount deducted in this case does not exceed 10 per cent of his remuneration
  • Contributions which the worker is required by law to pay from his remuneration, e.g. towards social security and insurance schemes
  • The worker's contributions to a savings fund or repayment of advances repayable thereto
  • Contributions towards any welfare scheme or in respect of any other privileges or services provided by the employer and approved by the Labour Department
  • Fines imposed upon the worker for any offence he has committed
  • Any debt payable in execution of the judgement of a court of law


Article 60 concludes, “The deduction shall not exceed one-quarter of the worker's remuneration. Where two or more debts are payable, the maximum shall be half the worker's remuneration and the sum of money attached shall be divided pro rata among the beneficiaries, after payment of any legal alimony at the rate of one-quarter of the worker's remuneration”.

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UAE labour law does not allow more than 10 days suspension from work with reduced pay, Gulf News reports.

Responding to a Q&A with readers, Gulf News clarifies key points of UAE labour law. The disciplinary penalties employers can impose are detailed and it confirms that employers cannot suspend an employee with reduced pay for longer than 10 days. Terms for repayment of employer loans and an employer’s right to reduce a worker’s salary are also detailed.

According to terms set down in UAE Federal Law No. (08) Of 1980, Article No. 102, the penalties an employer is allowed to give a worker in a disciplinary case include:
  • A warning
  • A fine
  • Suspension from work with reduced pay for a period not exceeding 10 days
  • Forfeiture or deferment or a periodic increment, in an establishment having an increment scheme
  • Forfeiture or promotion, in establishments having a promotion scheme
  • Dismissal without prejudice to severance pay
  • Dismissal with forfeiture of all or part of the severance pay
The final penalty can only be imposed on the grounds expressly specified in Article 120 of the Law.

UAE Federal Law No. (08) Of 1980, Article No. 60 defines an employer’s right to deduct funds from a worker’s salary and sets the limits on monthly repayments for an employee taking out a company loan. It states that no amount of money may be deducted from a worker’s remuneration in respect of private claims, except in the following cases:

  • The recovery of advances or amount of money paid to the worker in excess of his entitlements, on condition that the amount deducted in this case does not exceed 10 per cent of his remuneration
  • Contributions which the worker is required by law to pay from his remuneration, e.g. towards social security and insurance schemes
  • The worker's contributions to a savings fund or repayment of advances repayable thereto
  • Contributions towards any welfare scheme or in respect of any other privileges or services provided by the employer and approved by the Labour Department
  • Fines imposed upon the worker for any offence he has committed
  • Any debt payable in execution of the judgement of a court of law


Article 60 concludes, “The deduction shall not exceed one-quarter of the worker's remuneration. Where two or more debts are payable, the maximum shall be half the worker's remuneration and the sum of money attached shall be divided pro rata among the beneficiaries, after payment of any legal alimony at the rate of one-quarter of the worker's remuneration”.

OTHER STORIES THAT MAY INTEREST YOU

Pay rises no longer enough to attract and retain talent in the UAE

[Kuwait] Decline in expatriate workforce across Gulf states

Pay rises no longer enough to attract and retain talent in the UAE

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