Questions & Answers
The rights of an employee upon termination due to violating work rules
One of our employees is working in our banking sales division. He mishandled customer documents and details and we had to terminate him on that grounds.
Now, he is claiming his incentives and termination benefits. Are we liable to pay him termination benefits?
We are under an unlimited contract.
Please advise!
Dear Questioner,
According to Article 120 of the UAE Labor Law:
An employer can terminate an employment contract without notice and deprive the employee of his end of service gratuity if the latter:
1- Commits an error causing substantial material loss to the employer provided that the latter advises the labour department of the incident within 48 hours from having knowledge of the same.
2- Violates instructions concerning safety of the place of business provided that such instructions are displayed in writing at conspicuous places or verbally informed to an illiterate employee.
3- Fails to perform his basic duties under the employment contract and persists in violating them despite formal investigation with him in this respect and warning him of dismissal if the same is repeated.
4- Divulges any secrets of the establishment where he is employed.
Kindly contact us directly via phone or email for a detailed discussion on your issue.
Regards,
Mostafa ALSaeed
Dear questioner,
End-of-service benefits can be forfeited in a number of limited cases, as provided by the UAE Labor Law, article no. 120.
Based only on your brief explication above, I can not know if his actions can fall under any of the cases stated as per article no. 120.
If the employee submits a complaint, the court will assess, based on the documents and proofs, if he was guilty or not and if terminating his employment was the best approach.
I strongly advise you to check with a legal professional, who will be able to advise you accordingly since it is a very delicate situation.
Should you require assistance, please reach out to me via email.
