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

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?

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KHE Legal Consultancy
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14 Sep 2023, 05:28

This was not a mistake on the part of the employee. But it resulted in a huge loss.

In the law, only a willful mistake can be taken into consideration.

We can discuss this issue in detail in a legal consultation session for a charge of 28$.

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Dar Al Haqooq Legal Consultancy
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14 Sep 2023, 06:18

Dear Client,

Thanks for your question, I hope you are doing well. I will definitely assist you with this matter.

In the UAE, for an employer to pursue legal action against an employee who failed to participate in an international event in Saudi Arabia due to a family issue and resulting travel ban, they would need to establish a direct and substantial link between the employee's actions and the financial losses suffered by the company.

UAE labor law permits disciplinary action or termination for cause, but adherence to the contract terms and labor law is important.

Desired outcomes may include financial compensation for incurred losses. Pursuing legal action must be done carefully to avoid legal consequences.

To build a strong case, the employer should gather evidence like the employment contract, communication records, proof of financial losses, and relevant company policies. Consult us to navigate this complex situation.

For any further legal assistance, you can WhatsApp us. We have an extensive team of knowledgeable and experienced lawyers to provide the legal assistance you need.

We will definitely be happy to help you.

Thanks & Regards

ABDUL WAHIED

Rashid Saif Advocates & Legal Consultancy
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14 Sep 2023, 06:49

If one of the worker’s duties is to travel to other countries to conclude deals on behalf of the employer, he is prevented from traveling for reasons attributable to him, and this leads to a loss for the employer, after proving all the previous elements, it is possible to file a lawsuit against him to demand compensation, but you must prove the damages reliably first.

For any other inquiries, you can contact us by phone or email.

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