Drafting Disciplinary Policies
Drafting Disciplinary Policies in UAE
Disciplinary policies are basic workplace regulations that describe how employees should conduct themselves and work. As per the UAE Labour Law, these rules ensure that any disciplinary action taken on a worker is documented, justifiable, and law abiding. Following these policies will help maintain a productive working place and allow both employer and employee rights to be protected in UAE.
At HHS Lawyers, our lawyer can assist you with the following drafting services:
- Drafting clear workplace rules and disciplinary policies tailored to your business needs and UAE’s Labour Law.
- Reviewing your HR manuals to ensure compliance with all recent amendments to UAE Labour Law.
- Providing legal advice on the correct procedure for internal investigations.
- Assisting in the preparation of warning letters and termination notices in compliance with UAE legal requirements.
- Advising and supporting you in disciplinary disputes related to labour law.
What is a Disciplinary Policy?
A disciplinary policy in the UAE refers to a policy created by the employer about the procedures of the work and misconduct or poor performance. The policy also defines a gross misconduct, its penalties and process for appeal. All employers with more than 50 employees must prepare work rules which outline disciplinary procedures, according to Federal Decree Law No. 33 of 2021 (UAE Labour Law) and its executive regulations. It is advisable for the other businesses to prepare the discipline policy in order to ensure an orderly conduct of work.
Why Your Business Needs a Custom Disciplinary Policy
The main function of a disciplinary policy is to protect against the improper imposition of penalties. UAE authorities mandate that these policies:
- Promote Fairness: Employees are fully aware of the rules, and the consequences for breaking the rules.
- Legal Protection: In the absence of written rules, it will be difficult for the employer to justify a penalty or dismissal if the employee files a claim with MoHRE.
- Compliance: It assists the company in complying with Article 39 of the UAE Labour Law which lists the legal penalties an employer can enforce. This include but not limited to:
- Written notice,
- Written warning,
- Deduction of not less than (5) five days per month from the wage,
- Suspension from work for a period not exceeding (14) fourteen days and non-payment of wage for the suspension days
- Risk Management: If discipline is not carried out properly the employer can be liable to a claim of arbitrary dismissal and be required to pay up to three months’ wages as compensation.
Who Requires This Service
- Private sector companies in the UAE with 50+ workers, are required to prepare internal work regulations approved by MoHRE and in accordance with UAE Labour law.
- Companies in most mainland and many free zones (such as DMCC and IFZA) should comply with UAE labour standards in their workplace rules.
- UAE HR departments should revise old HR manuals to reflect 2021 UAE Labour Law.
- Startups and SMEs in UAE should set up workplace rules from day one to manage employees.
Requirements for a Valid Disciplinary Policy
A disciplinary policy to be legal in the UAE must contain:
- List of offences: a list of the actions that are considered violations under UAE labour law.
- Clear Penalty: Step-by-step punishments, from warnings to dismissals, as permitted by UAE Labour Law.
- Disciplinary procedure: the employee must be informed of the alleged offense and given an opportunity to explain.
- Written procedures: all disciplinary action must be recorded and filed in the employee’s file for compliance with UAE HR policy.
- Language: The policy should be drafted in Arabic (as the official language). However, an English version is strongly suggested for non-Arabic-speaking employees, if required.
Disciplinary Process in the UAE
To properly discipline an employee, the following steps must be taken in a sequential order:
- Written Notification: The employer must notify the employee in writing of the violation being investigated.
- Internal Investigation: The employee must be allowed to present their case. This must be documented in a written minutes-of-meeting format.
- Evidence Review: The employer must examine evidence/witness statements prior to determining a penalty.
- Penalty Notice: The penalty must be given in writing. The dates and reasons must be included.
- Right to Appeal: The policy should provide a specific amount of time for the employee to appeal the decision internally.
Legal Validity & Recognition
The Ministry of Human Resources and Emiratisation (MoHRE) and the UAE Labor Courts acknowledge a well-written disciplinary policy. If an employee alleges a claim to the court, the court will refer to the company’s internal policy. The court will then decide if the employer did not comply with their own policy and if the policy is in line with the UAE Labor Law. If the policy is in conflict with the law, law always prevails and the clause is void.
How HHS Lawyers Can Help You
We protect your company from all sides. With us, you do not get just a discipline policy, you get a shield for your company.
Our Areas of Expertise:
- Drafting of Internal Work Regulations: We draft the whole “Staff Handbook”, including disciplinary regulations, leave policy, safety rules, etc.
- Reviewing the existing policy: If you have your own policy, we review it and update it in accordance with UAE labour laws.
- Representation in Labor Disputes: If the disciplinary action results in a lawsuit, our lawyers represent your company before the UAE Labor Courts.
- Internal Investigations: We can give legal advice to your HR Manager on how to conduct a legal investigation that can be upheld in court.
- Drafting of Termination Letters: “Firing for cause” has to be done properly to avoid claims of wrongful termination.
FAQ’s
What is the process of a disciplinary hearing?
This action can be put up by an employee and for those who wish to discuss an allegation or misconduct on behalf of an employee.
What are the different types of disciplinary actions?
Some of the common types of disciplinary actions are as follows:
Performance improvement plan
Demotion
Termination
Suspension
Temporary pay cut
Written warning letter
What is the meaning of disciplinary procedure?
Disciplinary procedure mainly deals with a misconduct by employee(s). This process is for serious misconduct and the employee concerned is likely to be suspended.
Am I able to refuse the signing of a disciplinary documentation at work?
Employees often refuse in signing disciplinary action documentation, which can be bad news for a company. Employees are likely to provide their signatuures if notices are worded in a way that they agree. If employees still choose not to sign, HR personnel may provide a document receipt that contains their signatures. Take note: there must be a witness together with an HR professional signing the receipt. In such cases, it is best to seek an attorney for legal advice.
Protect Your Company Today
A simple disciplinary policy is more than just a legal requirement; it’s a management tool. Choose HHS Lawyers and Legal Consultants and you are partnering with an experienced legal team with more than 20 years of experience in the UAE legal market. We make the law simple for you, so that you can focus on expanding your business.
Book your consultation-today so we can help you draft your disciplinary policies.
