I have worked in a company in Dubai for more than two years. Last month, I was not able to work for seven days. As a result, the company terminated my services and asked me to sign a resignation letter. The letter mentioned that I have been terminated due to absence from work and am not entitled to end-of-service benefits. The company also asked me to serve the notice period, but did not pay for it. Note that this is the first mistake I committed in the duration of my service. I never received any warnings in this period. Under the labour law, what penalties can an employer impose on an employee? Does an employer have the right to terminate an employee’s services, or deduct salary, without warning?

As per Article No 102 of the UAE Labour Law No (8) of 1980, disciplinary penalties that an employer can impose on employees are as follows:

A warning, fine, suspension from work with reduced pay for a period not exceeding 10 days, forfeiture or deferment of a periodic increment, in establishments having an increment scheme, forfeiture or promotion, in establishments having a promotion scheme, dismissal without prejudice to severance pay, dismissal with forfeiture of severance pay (this penalty may only be imposed on the grounds specified in Article 120 of this law).

According to paragraph 7 of the article, the employer has no right to terminate, or forfeit the questioner’s end-of-service dues, except under Article 120, which is not applicable in the questioner’s case. The questioner has the right to file a complaint with the Ministry of Labour and seek compensation for arbitrary dismissal plus end-of-service benefits in case no settlement is reached with the employer.

 

Salary reduction

My company in Dubai has decided to reduce my salary for no reason. I am being asked to sign a document accepting the salary reduction and an increase in working hours without any payment for overtime. The labour contract signed at the labour ministry has no such clauses. I feel that if I sign this agreement, the company will have the right to increase my working hours and reduce my salary again in future. My contract is for a limited period and expires in December 2016. If I don’t sign the document, my services will be terminated as per my company. What should I do?

 

An employer has no right to oblige an employee to accept a salary reduction or increase working hours more than what is mentioned in the labour contract without paying overtime wages. Since the questioner’s contract is for a limited period, the employer cannot change its terms and conditions, or terminate it as long as the employee has not violated the UAE labour law. Termination of services due to a disagreement over salary reduction will be considered arbitrary dismissal. This will entail payment of compensation plus end-of-service benefits.

 

Questions answered by advocate Mohammad Ebrahim Al Shaiba of Al Shaiba Advocates and Legal Consultants.