UAE ministry clarifies criteria for private sector employers to penalise workers

Abu Dhabi: The Ministry of Human Resources and Emiratisation (MoHRE) has clarified that the termination of an employee’s service is considered unlawful or arbitrary if it occurs because the employee filed a legitimate complaint with the ministry or initiated a valid legal claim against the employer.

In such cases, the employer is obligated to compensate the employee with a fair amount determined by the court.
The ministry has said seven criteria govern the imposition of disciplinary penalties against private sector employees:

1. The extent of the breach of confidentiality concerning work-related data and information.
2. The impact of the violation on the health and safety of the employee or other workers in the establishment.
3. The financial consequences resulting from the violation.
4. The violation’s effect on the reputation of the establishment and its employees.
5. The misuse of authority by the offending employee.
6. The recurrence rate of various violations by the employee.
7. The inclusion of a moral or criminal aspect in the committed violation.

What recourse do employees have?
If an employee believes he has been unfairly dismissed, he may file a complaint with MoHRE to review the reasons for dismissal and attempt to reach an amicable settlement between the employee and the employer.

If the ministry fails to resolve the matter amicably, the case will be referred to the competent court. Should the court determine that the employee was unfairly dismissed, it may order the employer to compensate the employee.

How is compensation calculated?
The court assesses the compensation based on the nature of the work, the extent of harm caused to the employee, and the duration of their service. However, in all cases, the compensation amount must not exceed the employee’s wage for three months, calculated based on their last entitled salary.

In addition to compensation, the employee retains their right to receive end-of-service gratuity, notice period compensation, and any outstanding dues owed by the employer.