How must a UAE employer apply disciplinary penalties?
Only after informing the worker in writing of the charge, hearing and investigating the defence, and recording it in the worker's file. Article 24 of Cabinet Resolution No. 1 of 2022 bars charges for violations detected more than 30 days earlier and penalties more than 60 days after the investigation ends. Article 41 allows one penalty per violation.
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The penalties available
Article 39 of the labour law lists written notice, written warning, a wage deduction, suspension without pay for up to 14 days, loss of the periodic bonus for up to a year, loss of promotion for up to two years, and termination with end-of-service benefits kept. The employer must keep a penalty list explaining each.
Proportion and grievance
The penalty must match the violation's seriousness, considering confidentiality, safety impact, financial impact, reputation, abuse of authority, repetition and any criminal side. The worker can file a grievance with management. Employers with 50 or more workers must provide a written complaints and grievance system.
How SupaJack Construct records penalties
A fine deducted from pay is an itemised payslip line with its source, so each penalty can be traced to the decision behind it and checked against the deduction limits in Article 25.
Related tools and guides
See the UAE labour law guide for contractors, the final settlement calculator, the gratuity calculator, the annual leave calculator, the unpaid leave deduction calculator, payroll and WPS in SupaJack Construct, time and attendance and the meaning of basic salary.
Worked example
A supervisor discovers on 1 March that a driver used a company vehicle privately. The charge must be raised by 31 March. The investigation ends on 15 March and finds the violation proven, so any penalty must be imposed by 14 May.
Questions people ask
Can two penalties be given for one violation?
No, under Article 41.
Can conduct outside work be penalised?
Only if it relates to work.
Must the worker be heard?
Yes, with the defence investigated and recorded.