UAE Work Delays: Salary Deductions Explained

Can Employers Deduct for Tardiness in the UAE?

Working in the United Arab Emirates, many expatriates take time to understand the labor regulations. One common question that arises is whether employers can deduct from salaries due to lateness. Is it legal for employers to do so? Under what conditions? What are both parties' rights and obligations? This post details how UAE labor law regulates salary deductions for employee tardiness.

Legal Background

In the UAE, employment relationships are governed by Federal Decree-Law No. 33 of 2021, concerning the regulation of labor relations. Article 39(1) of the law clearly states that an employer may impose disciplinary sanctions, including salary deductions for up to five days per month, under certain conditions. However, this sanction is not at the employer’s discretion and must follow a specified disciplinary code and procedure.

Existence of a Disciplinary Code and Policy

An employer is obliged to prepare a written disciplinary code, detailing the sanctions that may be imposed, their precise conditions, and application methods. This is also required by Cabinet Resolution No. 1 of 2022, the implementing regulation of Law 33/2021. Article 24(2) clearly stipulates that every employer must have a table of penalties defining which penalties apply to which violations.

This means that salary deductions are only lawful if:

- The employer has a written, publicly available disciplinary code.

- The fact of the tardiness is documented.

- The affected employee is aware of the code in advance.

- The deduction amount does not exceed the legal maximum.

- The deduction is properly communicated to the employee.

When and How Much Can Be Deducted?

The law states that no more than five working days' salary can be deducted per month as a disciplinary penalty. The deduction amount must not exceed the appropriate portion of the salary for that month. Therefore, the deduction calculation considers the working days in the month and the ratio of tardiness.

For instance, if an employee was late three times for 30 minutes each during a month with 22 working days, the employer cannot automatically deduct a full day's salary unless the disciplinary code specifies the deduction calculation method, and it complies with legal frameworks.

Is Prior Notification Required?

Yes, prior notification is mandatory. An employer cannot impose any disciplinary penalty, including salary deductions, without informing the employee beforehand about the existence of the rules and the circumstances of their application. This usually takes the form of a signed employment contract, workplace policy, or an internal disciplinary handbook. Without these, the employer cannot automatically apply salary deductions.

What Should Employees Be Aware Of?

If someone joins a company, especially one registered on the mainland in Dubai, it is worthwhile to immediately request the company’s disciplinary code. If the company mentions deductions due to lateness, request written documentation detailing these policies. It is worthwhile to read every clause of the employment contract and have a HR representative confirm the application details of the code.

If an employee feels the deduction was unjustified or was unaware of it in advance, they have the right to complain. Initially, it is advisable to clarify the situation amicably through HR. If that doesn’t resolve the matter, the UAE Ministry of Human Resources can be approached to investigate and, if necessary, take action against the employer.

What Does This Mean in Practice?

Salary deductions for tardiness are neither automatic nor arbitrary. Employers can only use this measure if they comply with all legal requirements. This creates a balance between maintaining discipline and protecting employee rights. In a well-regulated system, employers can encourage punctuality, while employees are aware of the consequences and their rights.

Summary

UAE labor laws clearly define when and how salary deductions for tardiness can be made. A written disciplinary code, proper notification, and the application of proportional, transparent sanctions are essential. Every employee should be aware of this regulation to avoid surprises and to protect their interests in any potential disputes. In Dubai, one of the region's most dynamic labor markets, compliance with regulations benefits both parties and ensures a safer, more transparent working environment in the long term.

(Source: Based on Article 39(1) of Federal Decree-Law No. 33 of 2021.)