UAE employers face limits on workplace penalties at 50-worker firms

UAE employers with 50 or more workers may set internal rules on penalties, promotions and rewards under Article 13 of Decree-Law No. 33 of 2021, Gulf News said on Oct. 18.

The legal advice column matters for companies formalising workplace policies because it says employer rules must remain within the UAE Labour Law, rather than replacing it, at the 50-worker threshold.

Mohammed Ebrahim Al Shaiba, writing in an Ask Gulf News column, said employers may issue rules covering work instructions, disciplinary penalties, promotions, rewards, guidance and awareness measures, and procedures for ending employment relationships.

Those rules are subject to several conditions, according to the column. They must not contradict the decree-law, and any disciplinary framework must state which penalties may be imposed on workers and the terms for applying them.

Work-instruction rules should also cover daily working hours, weekly rest days, official holidays, and measures needed to reduce workplace injuries and fire risks, the column said.

For promotions and rewards, employers must set criteria and rules, according to the column. Employers must also inform workers of the regulations through any available means and make workers aware of them in a language they understand.

The column does not describe approval procedures, penalties for non-compliant workplace regulations, or how the framework applies to establishments below 50 workers. It also presents general legal guidance, not a ruling in a specific dispute.

Source: legal advice column, Gulf News, Oct. 18, 2026