ARTICLE
20 February 2023

Fines And Penalties For Breaches Of The Provisions Of The Federal Labour Law No 33, Year 2021

RA
Rousan & Associates

Contributor

Rousan & Associates Legal Consultants FZ-LLC, a legal consultation office based in United Arab Emirates. The main expertise is representing and advising clients in areas of laws include Employment, Commercial Companies, Banking, Intellectual Property, Real Estate, commercial, civil, and along with others.
The provisions of the federal labor law No 33-year 2021 amended the relations between employees and employers and stipulated several penalties in case of a law violation.
United Arab Emirates Employment and HR

AND CASES OF SEVERAL WAYS OF TERMINATING THE EMPLOYMENT CONTRACT

The provisions of the federal labor law No 33-year 2021 amended the relations between employees and employers and stipulated several penalties in case of a law violation.

BREACHES MENTIONED CLEARLY IN THE NEW LABOUR LAW

  • Submit wrong information or certificates to the employers or authorities.
  • Commit any act to prevent authorized persons from applying the law.
  • Employed an employee without a work permit.
  • Recruit an employee and lift him without work.
  • Used employee permit for reasons other than legal reasons.
  • Close a company without settling the employees' rights.
  • Employs an underage person contrary to this law.
  • Abuse the authority's online system. (This will lead to the Gail)

The penalty amount is based on the breach, which starts from 5,000/- up to 1,000,000/- And the banalities can be multiplied up to 10 times.

EMPLOYEES SHOULD NOT LEAVE WITHOUT GRANTING THE EMPLOYERS A NOTICE AND SHOULD NOT LEAVE BEFORE COMPLETING THE NOTICE PERIOD

Whether an employee resigns or is terminated by the employer, it is very important and mandatory to work during the complete duration of the notice period, as mentioned in the employment contract, which is capped from 30 days to 90 days according to the new employment law.

Employees who leave work without notifying the employer might lead them to cancel their employee work permit for one year, meaning the employee will not be able to work for one year with any other employer in UAE.

In the event of leaving the work before the end of the legal notice duration, in such case, the employee will be obligated to compensate the employer for a compensation called notice period compensation which is equal to the salary of the notice duration which was not served. So, unless the employee receives a termination of the employment contract with immediate effect, the employee should not leave before the last day, as mentioned in the termination letter.

EMPLOYEES SHOULD FOLLOW THE RULES FOR RESIGNATION

once the employee resigns, it is very important to follow the employment contract and apply the duration of the notice period as mentioned in the contract, and state clearly in the resignation letter the date of submitting the resignation and the date of the last working day in accordance with the employment contract provisions.

It is very important to send the legal notice to the concerned individuals in the organization, Shareholders, Managers, Directors, HR Managers, or the owner. And resigning employees do not have to mention the reason for the resignation. And the employer has no right to reject the resignation. Sending the resignation is only to notify the employer that the employee is leaving work.

LEAVING WORK BY THE EMPLOYEES WITHOUT GIVING A NOTICE IS LEGAL IN CERTAIN CASES

The employee may walk out of his Work without notice while reserving all his rights and dues at the end of his service in any of the following cases:

  • In case the Employer breaches any of his obligations under the Employment Contract or under this Decree-Law or the Resolutions issued in implementation thereof, provided that the Worker serves the Ministry with a 14-working day notice before the date of leaving the Work, and provided that the Employer fails to rectify such breach despite being notified by the Ministry to do so.
  • In case it is established that the Worker was subjected to assault, violence or harassment at the Workplace by the Employer or by his legal representative, provided that the Worker reports such act(s) to the relevant authorities as well as to the Ministry within five (5) working days from the date of becoming able to report the same.
  • In case there is a serious risk that threatens the Worker's safety or health inside the Workplace, provided that the Employer is made aware thereof and fails to take the necessary actions to eliminate such risk. The Implementing Regulation of this Decree-Law shall determine the controls related to serious risks.
  • In case the Employer requests the Worker to perform some Work that substantially differs from the Work agreed upon in the Employment Contract without obtaining the Worker's written consent to the same, except in cases of necessity as set out in Article (12) of this Decree-Law.

EMPLOYERS STILL HAVE THE RIGHT TO TERMINATE THE EMPLOYMENT CONTRACT WITH IMMEDIATE EFFECT IN SOME CASES

The employer should notify the employee of his/her desire to terminate the contract and grant the employee the notice period as stated in the contract, which must be 30 to 90 days. During the notice period, the work must be continued as it is.

If the employer wish to terminate the employment contract with immediate effect, the employer must pay to the employee the notice period compensation, which equals the total salary of the notice period.

The Employer may dismiss the employee without prior notice with no obligation to pay the notice period compensation after conducting a written investigation with him. The dismissal decision shall be in writing and reasoned, and shall be handed by the Employer, or his representative, to the Worker in any of the following cases:

  • In case the Worker assumes a false identity or submits forged certificates or documents.
  • In case the Worker commits an error that results in a gross material loss to the Employer or purposely damages the Employer's property along with admitting the same, provided that the Employer notifies the Ministry of a such incident within seven (7) working days from becoming aware of the occurrence thereof.
  • In case the Worker violates the Establishment's bylaws related to the Work safety, Workers' safety, or the safety of the Workplace, provided that such safety instructions are in writing and affixed in conspicuous places and that the Worker is made aware of the same.
  • In case the Worker fails to perform his main duties as set out in the Employment Contract, and such failure continues despite conducting a written investigation with him for such reason and after being served with two warnings of dismissal in case such failure is repeated.
  • In case the Worker discloses any of the trade secrets related to the industrial or intellectual property and such disclosure resulted in losses to the Employer, loss of opportunity, or in case the Worker achieved a personal benefit therefrom.
  • In case the Worker is found in a state of drunkenness or under the influence of a narcotic or psychotropic substance or commits any act of moral turpitude at the Workplace during working hours.
  • In case the Worker commits a verbal or physical assault or any other form of assault that is punishable under the laws applicable inside the State against the Employer, the manager-in-charge, any of his supervisors, or co-workers.
  • In case the Worker absents himself from Work for more than twenty (20) inconsecutive days in one year or for more than seven (7) consecutive days without a legitimate reason or a justification that is acceptable to the Employer.
  • In case the Worker misuses his position for private gain.
  • In case the Worker joins another Establishment without complying with the controls and procedures prescribed in this respect.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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