- within Employment and HR, Immigration and Accounting and Audit topic(s)
Introduction
The UAE has a comprehensive legal framework governing labour relations and financial crimes. Employers in the UAE have clear guidelines for terminating workers without notice in the case of serious offences, including the misuse of company funds.
In this article, we will explore the relevant UAE laws, specifically Federal Decree-Law No. 33/2021 on the Regulation of Labour Relations, Federal Decree-Law No. 31/2021 on Crimes and Penalties, and Federal Law No. 5/1985 on the Civil Transactions Law.
Termination of the Worker without Notice
Article 44 of the UAE labour law outlines the cases in which an employer may terminate a worker without notice. These cases include:
- Impersonation or submission of forged certificates or documents.
- Committing a mistake resulting in serious material loss to the employer or deliberately damaging company property.
- Violation of safety instructions related to the workplace.
- Persistent failure to perform basic duties despite warnings.
- Disclosure of work secrets leading to losses for the employer.
- Being in a state of intoxication during working hours or under the influence of substances affecting performance.
- Assault on the employer, manager, or colleagues.
- Unexcused absence for more than 20 intermittent days or seven consecutive days.
- Illegal exploitation of the job position for personal gains.
According to Article 44 (9), if an employee exploits their position for personal gain, the employer may dismiss them without notice. Before taking this step, the employer may conduct a written investigation, and the decision to dismiss should be documented in writing and justified. Subsequently, the employer or their representative may deliver the written dismissal decision to the employee.
Financial Crimes and Penalties
Under Article 453 of Federal Decree-Law No. 31/2021, Breach of trust is an offence. Any person who embezzles, uses, or disperses money or documents to impose damage on rightful owners may face imprisonment or fines. This includes situations where assets are received based on a deposit, lease, mortgage, loan for consumption, or agency.
The law is clear in holding individuals accountable for financial misconduct that harms others. As per the Article mentioned earlier under the UAE Penal Code, the employer may authorize filing a criminal case against the employee. Under the penal code, an offender who embezzles or misappropriates amounts, bills, or any other movable property may face imprisonment or a fine.
Civil Transactions Law
The Civil Transactions Law, Federal Law No. 5/1985, addresses situations related to gaining benefits without proper reasons and making payments that are not owed. Article 318 specifies that no one is entitled to enrich themselves without a justifiable reason at the expense of others. If enrichment occurs without just cause, recovery may be possible, and under certain conditions, the amount may be returned.
Conclusion
The legal framework in the UAE is clear and comprehensive, particularly in dealing with employee misconduct, especially instances of financial misconduct. It serves to safeguard both employers and their assets from potential employee misconduct. Both employers and employees need to understand these laws to maintain a fair and lawful working environment in the UAE.
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.
