A recent judgment of the Abu Dhabi Family, Civil and Administrative Claims Court provides a timely reminder to employers operating in the UAE of the importance of having clear disciplinary policies in place and adhering to them carefully prior to terminating an employee’s employment.
Former Employee Alleges Financial and Other Harms
The case arose from a claim brought by a former employee alleging that the wording of his termination letter had caused reputational, financial and psychological harm and seeking compensation of AED 120,000. The employee argued that the letter accused him of “gross misconduct” and “serious violation of company policy” and that these allegations were later undermined when the employer amended the termination letter following the involvement of the Ministry of Human Resources and Emiratisation.
The court ultimately dismissed the employee’s claim in its entirety, finding that there was no legal basis for awarding damages. In doing so, the court placed significant weight on the fact that the employee had agreed to the employer’s internal investigation procedures and subsequently entered into an amicable settlement. On the evidence before it, the court concluded that the employer had not acted with fault in a manner that would give rise to liability.
Considerations for the Disciplinary Process
While the employer was successful in this instance, the judgment underscores several important lessons for employers.
First, employers should ensure that...
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