Question: Can employers deduct salary if an employee arrives late to work? If yes, what is the proper process, how is the deduction calculated, and must the employee be informed in advance? I recently joined a mainland Dubai company, and my boss mentioned this policy to me.
Answer: In the UAE, an employer may impose disciplinary sanctions, including deductions from salary, only in accordance with the statutory disciplinary framework. This is in accordance with Article 39(1) of the Federal Decree-Law No. 33 of 2021 Regarding the Regulation of Employment Relationships, which states:
“1. The employer or his representative may impose on the employee who violates the provisions of this Decree-Law, its Implementing Regulation, and resolutions issued for its implementation, any of the following penalties:
c. Deduction of a maximum of five (5) days per month from the salary.”
Furthermore, employers are legally required to maintain a written disciplinary code that outlines the applicable sanctions and procedures. This obligation is mandated under Article 24(2) of the Cabinet Resolution No. (1) of 2022 On the Implementation of Federal Decree-Law No. (33) of 2021 Regarding the Regulation of Employment Relationships, which provides:
“2. The employer shall draw up a schedule of penalties, clarifying each of the disciplinary sanctions set out in Article (39) of the Decree-Law.”
Based on the aforementioned legal provisions, your employer may only impose salary deductions for late attendance if a clear disciplinary policy is in place and has been properly implemented. If you believe any deduction is being applied inconsistently or without proper notice, you may discuss the matter with your employer.