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Question: Under the UAE’s new labor law, when will employers have the right to fire workers without warning? If an employer decides to deduct an employee’s wages, what is the maximum allowable deduction?
Reply: First, according to Article (44) of Federal Decree No. 33 of 2021, an employer may dismiss a worker without notice after a written investigation of the worker, and the decision to dismiss an employee must be made in writing and with justification. In addition , in any of the following situations, the employer or its representative shall deliver the dismissal order to the worker:
1. It has been proven to impersonate another person or submit forged certificates or documents.
2. The worker has caused substantial bodily loss or intentional damage to the employer’s property by the worker’s mistake and acknowledges the same, provided that the employer shall notify the Department of Labor of the event within seven working days from the date of becoming aware of such an event.
3. The worker violates the instructions of the company’s articles of association relating to work and worker or workplace safety, provided that these instructions are written in a place visible to all and the worker is notified in advance.
4. The laborer fails to perform his basic duties in accordance with the labor contract. Although he has been investigated in writing, he continues to violate the labor contract. If he violates the labor contract again, he will be notified twice and warned of dismissal. .
5. The worker leaks work secrets related to industry or intellectual property, causing losses to the employer, missed opportunities, or seeking private benefits for the worker.
6. Workers are intoxicated during working hours, under the influence of narcotic drugs or psychotropic substances, or engage in conduct that violates public morals in the workplace.
7. The worker attacks the employer, the manager in charge, a superior at work, or a co-worker with words, actions, or any other form of attack while on the job.
8. Absence from work for more than 20 days or more than 7 consecutive days within one year without justifiable reasons or reasons accepted by the employer.
9. Workers use improper means in their positions to seek personal gain.
10. The worker joins another enterprise without following the rules and procedures set forth in this regard.
Secondly, according to Article 39 of the Act, the maximum deduction is 5 days per month, which stipulates that the employer or his representative may impose penalties on workers who violate the provisions of this Act, its implementing regulations and resolutions. Imposing any of the following penalties:
C. Deductions from wages not exceeding five days’ wages per month;
D. The suspension of work shall not exceed (14) fourteen days, and wages shall not be paid during the suspension of work;
E. For units that implement the regular bonus system, according to the labor contract or the unit’s regulations, those who are entitled to receive regular bonuses shall not exceed one year;
F. Deprived of promotion in an institution with a promotion system for a period not exceeding two years;
G. Termination of service while retaining the worker’s right to termination of service benefits.
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