ARTICLE
29 January 2024

What Happens To An Employee's Salary After Being Acquitted In A Court Case Initiated By The Employer?

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Dr. Hassan Elhais

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Dr. Hassan Elhais, a long-standing member of the prestigious Amal Alrashedi Lawyers & Legal Consultants, is a renowned legal consultant in the UAE, specializing in family law, criminal law, civil law, company incorporation, construction law, banking law, inheritance law, and arbitration. Dr. Elhais has gained wide recognition in the country, winning numerous awards and accolades. He was declared the Legal Consultant of the Year in 2026 by Leaders in Law. He was also elected as the co-chair of the ‘Relocation of Children Committee’ of the International Academy of Family Lawyers (IAFL), a worldwide association of practicing lawyers, widely regarded as the most experienced and skilled family law specialists in their respective countries. Dr. Hassan Elhais’s continued recognition in the 2025 Chambers and Partners rankings for Family/Matrimonial services to High-Net-Worth individuals in the UAE from 2022-2025.
In the UAE, employment-related matters are governed by Federal Decree-Law No. 33/2021 On Regulation of Labour Relations, commonly referred to as the Labour Code.
United Arab Emirates Employment and HR
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In the UAE, employment-related matters are governed by Federal Decree-Law No. 33/2021 On Regulation of Labour Relations, commonly referred to as the Labour Code. This law acts as a safeguard for employees, ensuring defence against unfair disciplinary measures and illegal termination.

This article explores a crucial question: What happens to an employee's salary after being acquitted in a court case initiated by the employer?

As we navigate the specific legal provisions of the Labour Code, we aim to explain the rights and protections given to employees after an acquittal, providing a comprehensive understanding of its impact on salary concerns.

Temporary Suspension and Acquittal

Article 40 of the UAE Labour Code addresses the temporary suspension of employees due to criminal accusations. If an employee is temporarily suspended and subsequently acquitted by the competent court, the law mandates their replacement with full payment for the suspension period.

In cases where specific crimes like assault on persons or money, or crimes against honour or trust are alleged, the employer can temporarily suspend the employee, leading to the suspension of remuneration.

However, if a final decision is made not to proceed with a trial, if the employee is acquitted due to the absence of a felony, or if the investigation concludes with insufficient evidence, the law requires the employee to return to work with full payment of the remuneration that was suspended during the investigative period.

Illegal Termination and Compensation

Article 47 of the Labour Code considers the termination of an employee's service as illegal if it is proven to be in acceptance for filing a serious complaint or a lawsuit against the employer, provided the complaint or lawsuit is found to be valid.

In such cases, the employer is required to pay fair compensation to the employee, as determined by the competent court. This compensation considers factors such as the type of employment, the extent of damage sustained, and the length of service.

However, the compensation cannot exceed the employee's remuneration for a maximum period of 3 months.

Dispute Resolution

In case of any disputes arising from labour relations, Article 54 outlines a process for resolution through the Ministry of Human Resources and Emiratisation (MoHRE).

If an amicable settlement is not reached, the MoHRE may refer the dispute to the competent court. Throughout the dispute, the MoHRE has the authority to oblige the employer to continue paying the employer's salary for up to 2 months if the dispute leads to a suspension of salary disbursement.

Conclusion

Federal Decree-Law No. 33/2021 aims to maintain a fair balance between employer and employee rights, making sure that individuals facing disciplinary actions or termination have accessible ways to address their concerns.

Employees acquitted after temporary suspension or dealing with illegal termination can seek protection and support as outlined in the UAE Labour Code.

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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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