Liability of an employee to pay damages caused to the employer

Questions & Answers

9 available 9 • View all

Liability of an employee for making a wrong payment

Q: If in any case that our system was hacked, and by mistake, a payment transfer was done and sent to a wrong bank account which is the bank account of the hacker, will the one who sent the payment be liable to pay the amount transferred to the hackers? Does the company have the right to file a case against the employee who made the mistake?

Mar 20, 2018

1378

Liability of employee for the loan taken in the company's name

Q: I have taken a loan for a company which I was working as an Accountant. Whether I am liable for such a loan for the company? The bank has given the loan in the name of the company and the bank has taken a security cheque from my employer. In such a situation, whether any GCC ban will be there as I have left the country also?

Mar 26, 2017

3857

Deferring the hearing of a labour case till deciding on a criminal case

Q: Suppose the employer finds out that the employee has been contacting his clients, and selling vendor products to such clients and accepting money. This has been captured in a CCTV footage, submitted to the police and the case is being under investigation. Now, the employee does not report to work and files a case in the MOL for overtime and not salary, as the salary is paid on time and payslips are signed by the employee. Since based on the final judgement, all the benefits for the employee may be nullified as per article 4 of the preamble, can the employer request the MOL to defer the hearing in the case till a final judgement is received in the police case? Pleases advise if any other means can be taken.

Nov 2, 2017

1350

Application of article 120 in case of a mistake by the employee

Q: Hi. I am working as an engineer. I am preparing BOQ for the project and I will forward it to my manager for verification and he will make a final quotation and send it to the customer. Unfortunately, I did a small mistake while making the BOQ in the Tender Stage Project and forwarded it to my manager for further procedure. He has not noticed also the mistake. After a couple of months, the main contractor called for a final discussion. That time we cross-checked the BOQ again and I found this mistake. I informed my manager that we missed this quantity which will increase the project cost, so we won't be able to meet their target. He shouted at me because we lost this project. I will take the necessary action. I just want to know if Article 120 is applicable to this issue. Please advise.

Jan 15, 2019

2060

Employer's right to deduct damages from the employee's EOSB in case of mistakes

Q: Hello, I'm structural detailer/draftsman. My employer terminated me last Nov. 30, 2020, due to some mistakes of work. But now more than 1 month already he doesn't want to cancel my visa and he told me to go back to my home country without cancelling my visa. Otherwise, he will file a case against me due to my mistakes and he wants to deduct the cost of rework and material scrapped from my settlement (AED 15k of total cost) due to my mistakes. Hope you can help me and give advice on what to do in this situation. Thank you in advance.

Jan 4, 2021

512

Max deduction for severance pay due to damage/negligence in UAE

Q: Dear Questioner, In the UAE, is there a maximum amount an employer can deduct from an employee's severance pay due to damage/negligence?

Apr 26, 2023

222

What can my company do with me if the client penalized us for a mistake we made?

Q: Hi, I am working as a mechanical engineer in a firefighting company in Abu Dhabi. I am in charge of and representing one of our sites and I am working inside the site. Due to our mistake during maintenance, we created a fire alarm which results in the evacuation of around 450 persons for 20 minutes. Due to this issue, our client charged a penalty of around 40000 Dhs to our company. Hence I need to know what actions can my company take against me. Is it allowed for the company to charge a full penalty amount from me or will they terminate me without settlement if I am proven guilty? If I need to pay the company some amount, what is the maximum amount I need to pay legally? If I am planning to resign from my company, will they make any issues during visa cancellation?

Jun 23, 2023

140

Can we file a claim against an employee if he caused a financial loss to the company?

Q: There was a legal action against an employee who failed to participate in an international event in Saudi Arabia due to a family issue that resulted in a travel ban, which in turn led to the non-signing of an AED 100,000 deal resulting in a loss to the company. - What legal grounds exist for the employer to pursue legal action against the employee in this scenario? - Does UAE labor law provide any specific guidance or remedies for such situations? - What are the desired outcomes or remedies the employer can seek through legal action? - Are there any potential legal consequences or liabilities for the employer in pursuing this case? - What documentation and evidence are needed to support the employer's case?

Sep 14, 2023

966

What to do if you get terminated and denied gratuity for a minor mistake?

Q: My brother has been working for a company for 11 years. In the last 3 weeks, he had an incident/accident and scratched a plane since he only had 1 person to assist him as the company was not hiring enough people. Senior staff like him are working more to train inexperienced new hires which adds to their workload working almost 12 hours/day including travel to DWC. The pilot said it was aesthetic and could be painted over but a police investigation ensued. Last week 3 managers and HR talked him down as the investigation concluded. He was terminated immediately with only this month's pay and his 11-year gratuity will not be given by the company. It was not gross negligence or malicious intent, he just didn’t have enough people to help him. He owned up to the mistake and reported the incident within 24 hours. Can he fight for the gratuity?

Jan 13, 2025

120

Legal blog

2 available 2 • View all

Accident and Personal Injury Compensation

Personal injury involves an injury sustained physically, emotionally and mentally. The injured person is entitled to claim damages where he has suffered an injury due to the other person’s wrongdoing. The victim may file a case against the person, who is found guilty in a criminal case or his insurance company if the defaulter has secured himself by insurance. The UAE civil law allows filing a compensation claim for injury damages.

Mar 19, 2020

6792

An Overview of the New UAE Labor Law and Recent Amendments of 2024

The UAE has adopted a major reform in its legislative system that brought about 40 new laws and amendments to the company law, criminal law, personal status, among others. The amendments aim to develop the legislative structure in various sectors, the labor law being one of these, was the most recent. We try in this article to shed light on the changes introduced with the new labor law and their significance on both, the employer and employee.

Sep 10, 2024

233

92447

Laws & Regulations

2 available 2 • View all

Federal Law No. (8) of 1980 Concerning the Regulation of Labor Relations

The provisions of this Law, known as "UAE Labour Law", govern the relationship between employers and employees and other labour matters in the United Arab Emirates. There are special labour related regulations applicable in some of the free zones in the UAE.

Apr 20, 1980

103753

Federal Decree-Law No. (33) of 2021 On the Regulation of Labor Relations

The provisions of this Decree-Law, known as "New UAE Labor Law", govern labour relations in the private sector of the United Arab Emirates. The New Labor Law repeals the previous UAE Labor Law (Federal Law No. (8) of 1980).

Sep 20, 2021

26934

Premium

Mohammad Salah Shoaib

Other answers by

View all

I have a case running in court and I am afraid the debtor will flee the UAE. Will a travel ban be automatically placed?

I filed a money claim above AED 10,000 (but will probably be above AED 50,000 if capital + dividends are combined) against someone in Abu Dhabi. The mediation time has elapsed, 2 court sessions have been done, and the defendant still hasn’t shown up or appeared in either of those. In the last/latest court session, the judge said that the defendant is still inside the UAE. About the travel ban, is it automatically applied to him because of the case, or do I have to ask/request it to be applied to him through the Abu Dhabi court?

May 2, 2025

كيف يمكنني الاستعلام عن قضية إبعاد أمني ومحاولة العودة إلى الإمارات؟

السلام عليكم، أود الاستفسار بشأن قضية إبعاد زوج خالتي من دولة الإمارات العربية المتحدة. زوج خالتي كان مقيماً في الإمارات وكان قد وُلد وترعرع هناك. في عام 2013 تم إبعاده من الإمارات، وكان ذلك نتيجة لسياسات حكومية كانت تستهدف مجموعة من المقيمين في تلك الفترة، وهو لم يكن قد ارتكب أي مخالفة في ذلك الوقت وكان يُعتبر ضحية للسياسات المتبعة. أرغب في معرفة الإجراءات التي يجب أن أتبعها حالياً من أجل رفع هذا الإبعاد وتمكينه من العودة إلى الإمارات. أرجو أن توضح لي كيف يمكنني مساعدته في هذا الموضوع. شكراً جزيلاً.

May 1, 2025

My previous organization has not yet released EOSB because I contacted a client. Is this legal?

I recently joined a new organization in the Hamriyah Free Zone, and my previous organization has not released my end-of-service benefits. The HR has instructed the finance team not to do so because I had contacted one of their clients. In my DMCC contract, there is no Non-Compete clause, but the offer letter has one, and now they are not releasing the end-of-service. Is this legal? What are my rights?

Apr 30, 2025

Can I renew my trade license and visa if I have multiple cheque execution cases filed against me?

Hello, I have multiple cheque execution cases filed against me due to financial strains last year. My trade license and visa will expire next month, along with my Emirates ID. Is it possible for me to renew my license and visa along with EID prior to settling the execution cases? The trade license and visa were issued by the free zone authority. I look forward to your response. Thanks.

May 1, 2025

How to file a case against my former company for unpaid salary I was not on their visa?

Dear Legal Advice Middle East, I hope you are well. I am seeking legal advice regarding an unpaid salary issue with my former employer, [-----]2 LLC. I was employed with them from December 4, 2024, to January 7, 2025, on a monthly salary of 5,000 AED. However, I only received a partial payment of 2,473 AED on February 24, 2025. The remaining 2,527 AED is still unpaid. I submitted a complaint to MOHRE on March 2, 2025, but I am unable to proceed further through their official channels. This is because I was working under the visa of my previous employer, [---] LLC, and not under [----]’s sponsorship. As a result, I do not meet the criteria to file a labor complaint via the MOHRE app or hotline. Given this situation, I would appreciate your guidance on how I can legally pursue the recovery of my remaining salary, considering the complications related to my visa status during the employment.

Apr 30, 2025