Compensation for employee arbitrary dismissal In addition to payments mentioned above, labour courts in UAE may award employees compensation in relation to arbitrary dismissal. The expat will be receiving a total of Dhs 192,000 for gratuity, unpaid wages, as well as arbitrary termination compensation. What you need to know is that were always here for your legal needs, no matter what they are. In accordance with Article 102 of the UAE Labour Law, an employer may impose certain disciplinary penalties on its employees, which include a warning, fine or dismissal. Article 26 of, Cabinet Resolution No. If he comes back to the UAE within 3 Months then the new employer will also pay the cost of the last VISA Processing/Employment Cost to the last employer. When an employee is appointed under probation and the dismissal occurs during probation or at the end of probation. fails to meet his contractual or legal obligations towards the worker, provided that the worker notifies the MoHRE 14 working days before the date of quitting and the employer fails to rectify the breach despite being notified by MoHRE of the same, assaulted or harassed the worker at workplace, provided that the latter informs the competent authorities and the MoHRE within five working days from the date on which he was able to report, instructed the worker to perform a work fundamentally different from the work agreed upon in the employment contract, without the workers written consent on the same, except for situations where work is absolutely required and as explained in Article 12 of the UAE Labour Law, failed to remove the factors that pose a grave danger and/or threaten the workers safety or health despite being aware of it. . Following that, the inquiry will determine what is considered to be a legitimate cause for canceling an unlimited contract, as well as the criteria for determining whether or not such real reason exists. If the contract is terminated other than as a result of personal or labor law, the employer will be considered to have dismissed the employee arbitrarily or unfairly, which means he will be responsible for paying compensation equivalent to three months salary or the remaining duration of the contract, whichever is shorter. This article focuses on the concept of arbitrary dismissal, wherein workers rights are safeguarded if their employer terminates their employment without a valid and justifiable reason. Our objective is to provide you with invaluable insights into the legal frameworks, regulatory considerations, and emerging practices that shape these industries. You can file a complaint with MOHRE through the following options:1. As per Article 123 of the UAE Labour Law, if arbitrary dismissal is proven, the court will order the employer to pay a compensation to the employee. Enter your e-mail below to subscribe to our free newsletter. If any of the parties, either an employer or a worker can terminate an unlimited contract at any time for a legitimate reason by supplying the other party a notice prior to 30 days to the termination. UAE Legal Reforms New Labour Law - CMS LAW-NOW If an employee believes that he has been dismissed illegally, he can complain toMinistry of Human Resources and Emiratisation. One of these myths is that an employer is tolerant to terminate a limitless employment contract after providing the appropriate notice, with no justification. UAE Redundancy Labour Law Explained | Employee Rights Article 122 of the Labour Law provides the following: When it comes to the termination of an unlimited contract, especially among businesses, there is often a lot of confusion. U.ae, Situations in which an employment contract may be terminated, Termination of contract without notice by the employer, Termination of contract without notice by the employee, Changing jobs or working for another employer after termination of contract, Terminating employment contracts and arbitrary dismissal, he/she terminates the employment contract during his/her probation period, provided that the employer had not breached his/her contractual obligations or if. Under the previous labor law, the same scenarios were mentioned only as examples of arbitrary dismissal. filing a complaint to MoHRE or filing a lawsuit against the employer, whose validity is proven, then such termination is illegal. Termination of employment by the employer for restructuring Filing Arbitrary Dismissal Claims in UAE | Arbitrary Termination 2. Thus, it is considered as an arbitrary dismissal, thereby allowing the employees to register complaint or a case before the labor courts for seeking compensation for the arbitrary termination. The term "arbitrary dismissal" was replaced with "illegal termination" under the New Labor Law, and the scenarios in which an employee is entitled to compensation were limited to the two situations stipulated in Article 47. Find out. A: Yes. Download the MOHRE app and file a labour complaint3. All rights reserved. The UAE mGovernment is not responsible for the accuracy of information in the translated language. Hazim Darwish, is a Senior Partner of HHS Lawyers in UAE. ALL RIGHTS RESERVED. Then the question is, 1, what must be a reasonable cause for concluding an unlimited contact? d - Deprivation from or deferment of periodic bonus in establishments having a system for such bonuses. The allowance for the notice period is calculated according to the last wage received by the worker. Still theres a confusion when it involves termination of an unlimited labour contract- especially amongst the employers. An employee has cost the company a big loss, and its reported to the concerned government departments within 48 hours with proof. From a real estate perspective, the region continues to exhibit a vibrant and diverse market offering, and an attractive return on investment that appeals to investors and end-users. If any employer terminates the employment of an employee without any valid reason, it may be termed as arbitrary termination. If arbitrary dismissal is substantiated, the Court will mandate the employer to compensate the employee. United Arab Emirates: Is Your Dismissal Arbitrary Under UAE Law? - Mondaq There is a slew of employment myths that are frequently used to the disadvantage of both employers and employees. 'What happens to my benefits if I lose my job while outside the UAE?' Arbitrary dismissal or been terminated unfairly, also termed as unfair/unlawful dismissal from the employer or forcing an employee to resign your job with none of any justifiable reasons. What does the law say about arbitrary dismissal? Article 122 of the UAE Labour Law defines that when a worker is dismissed by his employer for a reason irrelevant to the work, it is 'arbitrary termination'. 33 of 2021. spells out circumstances of grave danger at the workplace. If an amicable settlement cannot be reached, the case will be referred to the appropriate Court. The maximum compensation expected for arbitrary dismissal These circumstances include: Find more info: Role of the Arbitration Lawyers. You would need to create an account if you are choosing the second and third option. It is clear from the preceding that an unlimited contracts right to terminate without cause under the Labour Law isnt a free right, and it is dependent on an employer demonstrating a genuine reason for such a termination. Dubai: UAEs new labour law Federal Decree-Law No. An employee has failed in performing his responsibilities and duties as agreed between him and his employer through the employment contract. with the legal procedure. Arbitrary dismissal claim for termination due to restructuring. If an employee has faced any assault from the employer during the working hours, contract termination can be on the basis of arbitrary dismissal. It would be considered arbitrary dismissal if the employer terminates an employee because the latter filed a legitimate complaint with MoHRE or a lawsuit against the employer. Practicing law for almost a decade, he has in-depth knowledge on UAE legislation with particular expertise on legal drafting, contract drafting, labor disputes, family law, and regulatory compliance for business organizations. 2023 HHS Lawyers A Registered Trademark, Licensed to HHS Legal Services F.Z.C - UAE . The maximum amount of compensation that can be granted to a labor/employee in cases of established arbitrary dismissal is three months' compensation on the basis of the last full salary . The court will assess the value of compensation . Following the new labour law, if an employee can substantiate their claim of arbitrary dismissal by filing a complaint with the Ministry of Human Resources and Emiratization (MOHRE), and if the Ministry verifies the validity of the complaint, the employee is entitled to receive compensation for the arbitrary dismissal. Regardless of the fact that your contract is unlimited or limited, if a worker feels that he or she has been unreasonably terminated or his/her employer has infringed the terms of Articles, then the plaintiff can talk to us for further litigation in this regard. If an employer can provide proof that it is having economic crises, then the employee may not be in a position to claim compensation on the basis of arbitrary dismissal. As far as the end of unlimited contact is concerned, Article 113 section 3 states that this contract can be terminated only by one of the parties if the reason for termination is acceptable and notice has been given on time. According to Article 120 of the UAE Labour Law, the following is deemed lawful to be done by employers: If the above-mentioned mentioned are used against an employee with proof to back it up, it is lawful and the employer has the right to dismiss his employee. WhatsApp (Messaging Only): +971 52 1782469 The maximum compensation that can be awarded to an employee pursuant to an arbitrary dismissal claim is three months remuneration, calculated based on the last pay received by the employee prior to dismissal. A) If the employee worked for less than a year, but more than six months, the notice period is one week. Revamp of the UAE Labour Law - Bird & Bird The compensation amount will be determined by considering various factors. We study your plea and analyze it and suggest you the way to move forward to achieve your rights under UAE Labour law. However, the amount of compensation will be determined by the court along with the cost of initiating the court procedure. The provisions outlined in paragraph (2) above do not diminish the employees entitlement to receive payment in lieu of notice and severance pay, as stipulated in the relevant provisions of this law. This reason will not be termed as arbitrary dismissal so no additional salary will be payable. If the employee absences themselves from work without a valid reason for more than 20 intermittent days or more than seven consecutive days within a year. With reference to the termination of unlimited contact, its laid out in section 3 of Article 113 that this contract might be terminated by any of the parties only, if the rationale of termination must be a valid one and period of notice served on time.Then the matter of thought must be 1, what must be a legitimate reason for concluding an unlimited contact?