You can quit job without notice if employer fails to meet obligations

The employee must immediately report non-payment of salary to the Ministry of Labour and file a complaint against the employer.

My friend is working as an accountant since one year at an entity based in the UAE. However, she has not received her salary for two months, owing to the fact that the employer has taken in its possession ATM Cards of all its employees. The employer deposits salary in the accounts of each employee in accordance with the Wage Protection Scheme regulations, but subsequently, the employer withdraws the money using the employees’ ATM cards.

Under these circumstances, can she shift to a job without getting a labour ban?

It is presumed that your friend’s employment is subject to provisions of the Federal Law No 8 of 1980 on the Regulation of Labour Relations (the “Labour Law”).

Pursuant to the first part of your question, it may be noted that your friend shall be within her rights to terminate her current employment, as her employer has failed to fulfil its obligations towards her as its employee, as your friend has not received her salary for the last two months. However, your friend must immediately report non-payment of salary to the Ministry of Labour and file a complaint against her employer.

Therefore, if your friend should decide to terminate her employment, she may not face the imposition of an employment ban, as the reason for termination of employment contract may be attributable to the employer. This is in accordance with the provisions of Article 121, which states: “A worker may leave his work without notice in either of the following case:

(a) If the employer fail to comply with his obligation towards him, as provided for in the contract or in this Law;

(b) If he is assaulted by the employer or the employer’s legal representative.”

Pursuant to the last part of your question, it may be noted that the acts perpetuated by your friend’s employer may actually amount to unauthorised use of ATM cards, which is a punishable offence in the UAE. Owing to this, your friend along with other employees of the same entity may also consider to approach the police and file a complaint against her employer. However, in any case, it is advisable for your friend to simultaneously file a complaint against her employer at the Ministry of Labour as well.



Know the Law: When, why UAE employer can withhold your gratuity

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There are areas where employer can build case for not paying employee in service for more than one year: legal experts.

The UAE labour law dictates that gratuity or end-of-service benefits are payable to employees who have completed one year or more in continuous service.

Despite meeting that criterion, there are a few clauses that can keep an employee from receiving the payment.

The first most obvious clause is less than a year of service, which is common knowledge.

“Where an employee is engaged under an unlimited term contract, no end-of-service gratuity (ESG) will be payable where the employee has been continuously employed for less than one year,” Jamie Liddington, Head of employment at Hadef & Partners, told this website.images (2)

There are other areas as well where the employer can build his case for not paying the employee despite being in service for more than one year.

It’s also important to understand some core points of difference when it comes to gratuity for those under a limited or unlimited contract, and here are the scenarios that can keep you away from getting your gratuity amount in your bank account.

According to Liddington, those under unlimited term contract may have to skip this amount if s/he “has been continuously employed for more than one year but resigns without providing the minimum period of notice required under the contract and without reasonable grounds to show that [firstly] the employer had, at the time of the resignation, failed to honour his contractual obligations to the employee or [secondly] he was assaulted by the employer or his employer’s legal representative.”

Then, there is a list under article 120, which employees should be aware of when it comes to gratuity entitlements.

Speaking to Emirates 24|7, Sara Khoja, Partner at law firm Clyde & Co says: “An employee who is terminated under article 120 of the Federal Labour Law, Law no 8 of 1980, is not entitled to end -of-service gratuitimagesy benefit or notice.”

Another scenario when the gratuity payment can be withheld is when “the employee has been continuously employed for more than one year but the employee’s employment is terminated for a reason set out under Articles 88 or 120 of the Labour Law,” states the expert at Hadef & Partners.

Khoja explains the clauses in article 120, under which gratuity will not be paid.

These include:

• Termination during probation or on its expiry.

• If the worker has adopted a false identity or nationality or submitted forged certificates or documents.

• If a worker makes a mistake causing substantial material loss to the employer provided the employer notifies the relevant labour department within 48 hours of the accident.

• If the worker disobeys instructions regarding industrial safety or the safety of the workplace provided the instructions have been issued in writing and are posted conspicuously in the workplace in a language accessible to the employee or explained to him orally.

• If the worker does not perform his basic duties under the contract and persists in violating these despite being investigated and receiving a written warning notifying him of termination in the event of repeat offences.

• If the worker reveals his employer’s trade or business secrets or confidential information.

• If the worker is finally sentenced by a competent court for an offence involving honour, honesty or public morals.

• If the worker is drunk or under the influence of an illegal drug during work.

• If while working the worker assaults the employer or his manager or a colleague.

• If the worker is absent from work without a valid reason for more than 20 non-consecutive days or more than 7 consecutive days.

Those working in another company without getting set approvals from the employer can also jepoardise their gratuity.

“Article 88 concerns working for another employer (without permission) during a period of annual or sick leave,” says Liddington, and this can lead to problems for the employee.

In cases where an employee is engaged under a limited or fixed term contract, “no ESG will be payable where the employee resigns before completing five years of continuous service unless he can show that (i) the employer had, at the time of the resignation, failed to honour his contractual obligations to the employee or (ii) he was assaulted by the employer or his legal employer’s legal representative,” he explains.

As per Khoja, those engaged on an unlimited term contract may get a reduced amount if the minimum term is completed.

If an employee “resigns in the first five years of employment, the end of service gratuity entitlement is reduced to 1/3rd if the employee has between 1 and 3 years of service and to 2/3rd if the employee has between 3 and 5 years of service. The employee may resign without suffering any reduction in gratuity if he has 5 years of service or more.

“If an employee is engaged on a fixed term contract then he must complete the duration of the term in order to be entitled to gratuity. If he has 5 years or more of service then he can resign without completing the term of his fixed term contract and will still be entitled to end of service gratuity,” she adds.

The above information is relevant for UAE onshore companies and not those domiciled in the DIFC, which has a different employment law – Law No 4 of 2005 as amended.

courtsey: Emirates 24/7

What not to do when driving on Dubai roads


Vehicles will be seized if fine exceeds Dh6,000; hefty fines for racing, modifying engines.


A new law in Dubai authorises the police to confiscate vehicles of drivers participating in street racing without obtaining prior permission. Motorcycles that are driven on road pavements that are meant only for pedestrians will also be confiscated.

Vehicles that have been impounded for racing on roads are required to pay a release amount of Dh100,000, while bikes seized for being driven on pavements need a release amount of Dh50,000, according to the decree.fine

A new decree regarding the seizure of vehicles in Dubai has been issued by His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai. Decree No. (29) of 2015 aims at protecting life, property, ensuring traffic safety and reducing accidents.

The decree specifies the administrative and obligatory confiscation of vehicles.

The decree authorises the Commander in Chief of the Dubai Police, or his representative, based on the traffic control report, to confiscate the vehicle of any erring motorist according to the situations described in Annex Table of the decree. The confiscation period shall not exceed the specified time.

The police is also authorised to confiscate any vehicle that has been modified in a way that can increase its speed limits.fine1

Also if the value of traffic fines issued against the vehicle exceeds Dh6,000 or if it is being driven with an car registration that has expired more than three months ago, then the police can seize the vehicle. The vehicle can also be confiscated if the driver is caught driving recklessly endangering the lives of other road users or if he speeds or tries to flee when asked to stop by the police.

Police can sell seized vehicles

The decree gives the power to the Dubai Police to sell off the confiscated vehicle in an auction if the driver does not pay the fines even after three months from the date confiscation. This is also stipulated in the Law No. 23 of 2015 regarding the disposition of seized vehicles in the Emirate of Dubai.

According to the decree, the driver of a heavy vehicle (who is not UAE national) will be deported if he is caught jumping a red signal. Major-General Khamis Mattar Al Mazeina, Commander in chief of the Dubai Police, praised the new law that he said reflects the keenness of Shaikh Mohammed in ensuring the safety of road users in Dubai.


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