UAE Employers With 50 or More Workers Must Establish Clear Rules on Discipline and Promotions
Author : The Law Reporters | Published On : 02 Nov 2026
UAE employers can establish workplace policies covering employee conduct, promotions and rewards, but those rules must comply with labour legislation.
Article 14 of Cabinet Resolution No. 1 of 2022, the Executive Regulations of Federal Decree-Law No. 33 of 2021 on the Regulation of Employment Relationships, requires establishments employing at least 50 workers to maintain formal work regulations.
The policies must address operational instructions, disciplinary penalties, promotion criteria, bonuses and employment termination procedures. Workers must be informed of the rules in a language they understand.
Disciplinary authority is also restricted. Article 39 of the Employment Law specifies the permitted penalties, including warnings, limited wage deductions, suspension and certain restrictions on promotions or increments.
Employers cannot introduce additional punishments simply through internal policies.
Before imposing a penalty, they must notify the employee of the alleged violation, hear the employee's response and document the investigation.
The Executive Regulations also impose time limits. Allegations cannot generally be initiated more than 30 days after discovery, and penalties must be imposed within 60 days after the investigation concludes and establishes the violation.
Employees may challenge disciplinary decisions through internal grievance procedures or applicable labour complaint channels.
Smaller establishments must also comply with the statutory restrictions on disciplinary action.
