Know the Law: What employee is entitled in case of injury or death

An employer in the UAE may be liable for injury caused to an employee whilst at the workplace or away from work but that is associated with work.

In its latest newsletter, lawyers at Clyde & Co outline the situations/circumstances under which an employer can be held liable for these injuries and what compensation the employee is entitled to.

Rebecca Ford, partner and Jonathan Heath, associate at Clyde & Co’s Dubai office, highlights in the newsletter that “under the Labour Law, employers are liable for workplace injuries suffered by employees, or diseases they contract as a result of their work, without any finding of fault on the part of the employer. There are only a few exceptions to this, in cases where the employee’s conduct warrants this.”

Workplace injuries are defined quite widely under the Labour Law, the authors state, so that they cover any accident sustained by the employee during the performance of their work or as a result of their work.

Injuries do not have to be limited to the workplace alone. This also includes any accident sustained by an employee on their way to or from work (provided that journey is made without delay, default or diversion from their normal route).

What happens in an untoward situation?

If the employee suffers from a workplace accident or contracts an occupational disease, the employer is obliged to file a report with the police immediately, as well as with the Ministry of Labour (or relevant free zone authority).

Once this is done, the police will investigate and report on the accident – indicating whether it was connected with the employee’s work or if it resulted from deliberate or negligent actions by the employee.

This report is sent to the Ministry of Labour as well as to the employer and hence begins the process of deciding what should be the compensation to the employee.

Compensation to the employee

To begin with, employers are obliged to cover the medical costs of workplace injuries, as well as the transport expenses arising from the employee’s treatment, until the employee recovers or the disability is confirmed.

The medical expenses can be covered by a private medical insurance policy, although the employer may have to pay any employee contributions or excess under the policy, the newsletter puts it.

Besides the medical costs, the employee is also entitled to financial help from the employer. This has two case scenarios – one for six months and second exceeding this period.

“In addition to the payment of medical costs, where the injury prevents an employee from carrying out their duties, the employer must also pay the employee a financial subsidy equal to full pay (calculated with reference to the last pay received by the employee) throughout the period of treatment, or for a period of six months, whichever is the shorter.

“Where treatment continues beyond six months, the employer is required to pay a financial subsidy of half pay for a period of six months, or until either the employee recovers from the illness or accident, their disability is confirmed, or they die. The financial subsidy can also be covered by an appropriate insurance scheme,” say the authors.

Disability

“Finally, where an employee dies or suffers a disability as a result of a workplace accident or occupational disease, the employee, or their estate, is entitled to a compensation payment under the Labour Law. The maximum compensation, for accidents that result in death or very serious injury (such as paralysis or facial disfigurement) is 24 months’ remuneration (calculated with reference to the last pay earned by the employee), provided that this is not less than AED18,000 and not more than AED35,000.”

“For other disabilities, the Labour Law provides a sliding scale of compensation payable by the employer, based on a percentage of the maximum award. For example, an employee would be entitled to compensation of 70 per cent of the maximum award for the loss of both arms, and 38 per cent for the loss of their right hand,” they add.

And that’s not all. “In addition to their potential rights under the Labour Law, employees can bring a claim against their employer under the UAE Civil Code (Federal Law No. 5 of 1987, as amended) (Civil Code). Claims under the Civil Code are assessed separately to those under the Labour Law,” explain the authors.

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