Internal Policies & UAE Labor Law

Can an internal company policy limit rights protected under UAE Labor Law?

A recent Dubai Court of Cassation judgment provides an important reminder: internal policies may regulate workplace processes and provide additional benefits, but they cannot impose less favourable conditions that undermine employees’ statutory rights.

The judgment also addresses commission entitlements. While the existence of a commission scheme does not automatically create an entitlement, once the conditions for earning the commission are established, a less favourable internal policy cannot be used to defeat a right protected by law.

In our latest briefing, Hana Al Khatib, Partner and Head of the Corporate & Commercial Litigation Department, examines the judgment and its practical implications for employers reviewing their internal policies, commission schemes and incentive plans.