Running a fair disciplinary process in the United Arab Emirates
Reviewed by Mellow Editorial Team, HR & payroll content team
Handling a disciplinary matter fairly in the UAE means following the specific procedure set out in Federal Decree-Law No. 33/2021 (the UAE Labour Law) before imposing any penalty — skip steps and you risk the dismissal being ruled unlawful, whatever the underlying conduct.
What the law requires before you act
The Labour Law lists the only penalties an employer may impose: a written warning, a fine (capped at five days' basic wage), suspension without pay for up to 14 days, deprivation of a periodic increment (where an increment scheme exists), deprivation of promotion, and dismissal.
Before applying any of these, you must follow a written process. The law requires that you:
- Notify the employee in writing of the alleged violation
- Give them a genuine opportunity to respond and defend themselves
- Conduct and document an investigation
- Issue any penalty in writing, stating the reason
You cannot impose more than one penalty for a single act. The penalty must also be proportionate — a minor first offence warrants a warning, not dismissal.
Building your investigation
A fair investigation is your foundation. Rushing it, or skipping it entirely, is one of the most common employer mistakes.
Appoint someone to investigate who was not directly involved in the incident. Collect the relevant evidence first — messages, access logs, witness accounts, CCTV if applicable — before speaking to the accused employee. This avoids the appearance that you formed a conclusion before gathering facts.
When you interview the employee, put the allegation to them clearly and give them adequate time to respond. Take notes, and have them signed where possible. If the employee raises points that require further enquiry, follow those up before concluding.
Document everything. In any subsequent dispute before the Ministry of Human Resources and Emiratisation (MOHRE) or the courts, the written record of your investigation is your primary defence.
The notice-and-response requirement
The Labour Law is explicit: the employee must receive written notice of the allegation and have the opportunity to state their case before any penalty is applied. This is not a courtesy step — omitting it can invalidate the entire process.
Your written notice should state: what the alleged conduct was, when it occurred, and what rule or policy it potentially breaches. Set a reasonable deadline for the employee to respond in writing or request a meeting, typically three to five working days depending on the complexity of the matter.
If the employee does not respond within the deadline, document that fact and proceed. Their silence does not prevent you from continuing, but you must be able to show you gave them a real opportunity.
Suspension during investigation
You may suspend an employee on full pay while an investigation is ongoing. This is appropriate where the employee's presence could compromise the process — for instance, if they might influence witnesses or access relevant systems.
Suspension without pay is a separate disciplinary penalty in its own right and should not be used as a holding measure during investigation. That distinction matters.
The investigation should be completed promptly. Leaving someone in limbo for weeks without clear communication is both unfair and a source of grievance that can complicate any later proceedings.
Gross misconduct and summary dismissal
Article 44 of the Labour Law lists the specific grounds on which an employer may dismiss an employee without notice and without end-of-service gratuity. These include: assault on a manager or colleague, serious safety breaches, attending work under the influence of alcohol or prohibited substances, causing significant financial loss through deliberate or gross negligence, and disclosing confidential business information.
Even in these cases, the investigative process still applies. You cannot simply dismiss on the day you learn of the incident without following the steps above. The characterisation of conduct as gross misconduct affects the financial consequences of termination — notice pay and gratuity — but it does not remove the procedural requirements.
Where conduct does not meet the Article 44 threshold, termination without notice is not permitted, and end-of-service gratuity accrues as normal: 21 days' basic wage per year for the first five years of service, and 30 days per year after that, capped at two years' total pay.
Keeping records and communicating outcomes
Once a decision is reached, communicate it to the employee in writing. The letter should state the finding, the penalty being imposed, and the reasoning. Where dismissal is the outcome, include the effective date, notice period (if applicable), and information about final entitlements.
Keep the full investigation file — notices, responses, interview notes, evidence, and the decision letter — for a minimum period aligned with potential dispute timelines. MOHRE complaints and court claims can arise months after the event, and a well-maintained file is your most reliable protection.
If the employee disputes the outcome, MOHRE provides a mediation process before matters escalate to the courts. Having a documented, proportionate and consistent process on record gives you a credible position to defend.
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This article is general information only and does not constitute legal advice. For specific situations, consult a qualified UAE employment lawyer.
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