If the employee fails to fulfil their fundamental obligations as stated in the employment contract and continues to violate them despite receiving two warnings of dismissal for the same offence. What you need to know is that were always here for your legal needs, no matter what they are. 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in cases of established arbitrary dismissal is three months' compensation on the basis of the last full salary withdrawn by the employee. After termination or expiry of the contract, you will get a grace period from the date of cancellation, in which you can either obtain a, Ministry of Human Resources and Emiratisation (MoHRE) and, Federal Authorityfor Identity, Citizenship, Customs & Ports Security. The employee may call and report a problem to (MOHRE), The Ministry of Human Resource and Emiratisation, at 80060, who examines complaints and attempts to mediate between the employer and employee in the first instance. The statutory provisions governing disciplinary procedures are minimal but clearly dictate how a disciplinary procedure should be conducted. The employee can directly call and register a complaint in (MOHRE), The Ministry of Human Resource and Emiratisation, at 80060, who examines the complaints and tries to mediate at first between the employer and employee to reach them into a compromise. In the UAE, if a workers contract is terminated unfairly without a proper warning or forced to resign, he will be compensated as well as all of his dues, and he will be eligible for an employment experience certificate under UAE Law.If you believe that your employer has fired you without a valid cause in accordance with UAE Labour Law, Article 123, and if it is shown that an arbitrary termination occurred, the honorable court will order the employer to pay compensation. UAE: Terminated unfairly? These are your rights as an employee - Gulf News United Arab Emirates: Compensation For Arbitrary Dismissal - Mondaq Everything you should know about Losing your Job in UAE Along with the above-mentioned payments, the Labour Courts may also award employees with compensation for "arbitrary dismissal". GULF NEWS ASK THE LAW AL SHAIBA ADVOCATES & LEGAL CONSULTANTS All Rights Reserved. Employees can also be terminated because of economic crises this is a legitimate reason for redundancy and the employer is obliged to provide notice and a salary for a period of 30 days as per UAE law. your employer terminates the contract without giving you a reason . If an employer provides a valid reason for termination of the contract of an employee then it cannot be termed as arbitrary dismissal. Illegal residents are liable to be fined/deported. Compensation for Arbitrary Dismissal in UAE: Is It Possible, International Documents Attestation Service, Ministry of Labour or Ministry of Human Resources and Emiratisation, Legal Advice that You Need for Will Drafting, How to Avoid Getting into Debt Advice from a Debt Recovery Agency Expert, Read More About The Liquidation in AI Ittihad Newspaper , Property Tax Planning in the UAE: What You Must Know, Contract Liquidation Minutes in UAE: Protection from Breach of Contract, Civil Will for Muslims in the UAE: What You Must Know, The Process to Notarize Power of Attorney In Dubai UAE, Double Taxation Agreements for Optimal Tax Planning and Compliance in the UAE. Become your target audiences go-to resource for todays hottest topics. 279 of 2020 (Resolution 279) as part of a package of new measures to support private sector employers in the UAE during the Covid-19 outbreak. Loss of any kind should be reported to the Ministry of Labor with proof within 48 hours of knowledge of the incident that resulted in such loss. United Arab Emirates: Is Your Dismissal Arbitrary Under UAE Law? - Mondaq subscription, Unfair salary deduction? The dismissal notice must be in writing, justified and handed over duly to the employee. After we read the article thoroughly, well determine that an employers right to end an unlimited contract only for a good cause is ludicrous. Compensation, unpaid dues, or other benefits that are not given to the employee can be claimed. UAE Legal Reforms New Labour Law - CMS LAW-NOW Making Employee Roles Redundant Due to COVID-19 | UAE Labour Law Visa What Should You Do? . This is also known as "unfair dismissal" wherein an employer decides to lay off an employee or coerce to do so without any reasonable grounds. I was verbally informed of my contract being ended due to redundancy on 6th October with no requirement to work the notice period. If an amicable settlement is not reached, the case will be referred to the respective court. The court will assess the value of compensation taking into account the type of work, the extent of damage caused to the employee and the duration of his employment. In our experience, the Courts only accept a termination to be "valid" and thus decline to award arbitrary dismissal compensation, where either (i) the employee is guilty of one of the specified (and exhaustive) gross misconduct type reasons listed in Articles 88 and 120 of the UAE Labour Law, or (ii) the employee is a poor performer (and there i. Arbitrary Dismissal of Employees | Arbitrary Dismissal UAE Labour Law The employment law has established certain rules for termination that the employer must adhere to. Such disputes are solved by Labour and Employment Lawyers and luckily Dubai has a few best Labour and Employment Lawyers in Dubai, also known as Unlawful dismissal lawyers. If the employer fires an employee without following the termination procedures depending upon the laws of the jurisdiction in which the termination occurs, the employee may have a claim for wrongful termination. In compliance with the law, the employment might be dismissed by the employer only upon the expiration of the contract. The ministry will try to solve the issue amicably. One among these myths is that an employer is liberal to terminate an unlimited employment contract, after issuing the prescribed notice, with none of any justifiable reasons. These scenarios were only mentioned as examples of arbitrary dismissal under the previous labor law. Hazim Darwish, is a Senior Partner of HHS Lawyers in UAE. 2023 HHS Lawyers A Registered Trademark, Licensed to HHS Legal Services F.Z.C - UAE . subscription, ePaper We promise not to bother you often! "Should the worker be arbitrarily dismissed, the competent court may order the employer to pay a compensation to the worker. B) If the employee has been with the company for more than a year, he or she is entitled to two weeks notice. However, there is still some uncertainty when it comes to the termination of an unlimited labor contract, especially among businesses. If you are feeling that your employer has terminated you with none of any proper reasons than in compliance with the UAE Labour law, as per Article 123 and if its proved that arbitrary dismissal has taken place, the honorable court will command the employer to recompense the worker. Fifty One Tower Unit 1601 Marasi Dr Dubai UAE. Dubai - An employee should be notified in writing for non-performance of work. For Sales Enquiries: sales@hhslawyers.com. In particular, if an employer fails to comply with the statutory procedure, the final disciplinary penalty could be found by the Labour Courts to be unlawful (irrespective of the employees poor performance or conduct). This kind of dismissal is usually against the rules and regulations that are laid down by the government through a country's labour law. Enter your e-mail below to subscribe to our free newsletter. Article 117 reads as follows: A careful reading of the aforementioned Article exposes that an employers right to terminate an employment unlimited contract isnt free but instead conditional on the presence of a legitimate reason. The employer is permitted to fire an unlimited contract without giving a reason after providing the required notice, and the employee has several alternatives as well. This is when anyone is dismissed due to unlawful or illegal reasons. For Consultation: expert@hhslawyers.com Can employee claim compensation for arbitrary dismissal in UAE? An arbitrary dismissal is the unfair and unlawful dismissal of an employee, who is subjected to an unlimited term employment contract, as determined by the Labour Court. You can read our detailed guide on the process that is followed by MOHRE centres, when an employee files a labour complaint, here. Article 110 of the UAE Labour Law sets out strict legal formalities, which provide that the penalties listed under Article 102 may not be imposed unless: There are very strict time limits within which disciplinary action must be taken. The UAE mGovernment is not responsible for the accuracy of information in the translated language. Disciplinary Action And Arbitrary Dismissal In The UAE - Employee 'What happens to my benefits if I lose my job while outside the UAE?' Terminating employment contracts and arbitrary dismissal We recommend that employers operate a company disciplinary policy (whether as part of the contract of employment, the staff handbook or a free-standing policy), which addresses the minimum requirements set out in the UAE Labour Law. ALL RIGHTS RESERVED. Hassan Humaid Al Suwaidi., LL.B. In accordance with UAE Law, if a worker whose contract is unfairly terminated without a proper warning or force him to resign, will get compensated along with all their dues, and he will be also eligible for an employment experience certificate. Revamp of the UAE Labour Law - Bird & Bird Arbitrary dismissal occurs when an employer terminates the contract by unfair or insufficient reason. An employee has failed in performing his responsibilities and duties as agreed between him and his employer through the employment contract. 47 of 2022 Regarding the Settlement of Labour Disputes and Complaints Procedures, (PDF, 292 KB) mentions that an employee may not get a work permit for one year, from the date of his/her departure from the UAE if. The employer must inform the Ministry of Human Resources and Emiratization (MoHRE) within seven working days of becoming aware of the incident. End of service benefits for workers in 2023 Disciplinary Action And Arbitrary Dismissal In The UAE - Employee The New Labour Law is a revamp of the UAE's employment . This website stores cookies on your computer. If the Court determines the dismissal was arbitrary, it may order the employer to reinstate the employee or provide appropriate compensation. In the event that the employer terminates the contract, the worker is entitled to an unpaid leave of one day per week during the notice period to search for another job. 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 withdrawn by the employee. 47 of 2022 Regarding the Settlement of Labour Disputes and Complaints Procedures (PDF, 292 KB) mentions that an employee may not get a work permit for one year from the date of his/her departure from the UAE if: Give us your feedback so we can improve your experience. According to Article 47, if an employer terminates an employees contract due to the employee filing a complaint with the Ministry of Human Resources and Emiratization (MoHRE) or initiating a lawsuit against the employer, provided the validity of such actions is proven, the termination is considered illegal. We assist the employee in registering his complaint with MOHRE and providing the exact calculation of his companys overall payments to MOHRE. ASK THE LAW is the Online Legal Entity of Al Shaiba Advocates & Legal Consultants, a Full-Service Emirati Law Firm. It is already established that employers may terminate employment contracts (whether limited or unlimited) with immediate effect for reasons indicated in article 120 of the Labour Law. A) If the employee worked for less than a year, but more than six months, the notice period is one week. Article 44 of the UAE Labour Law mentions that an employer may terminate the services of the employee without notice, if the latter: The law stipulates that the employer may terminate without notice only after conducting a written investigation of the worker. If arbitrary dismissal is substantiated, the Court will mandate the employer to compensate the employee. The enquiry will then get on whats considered to be a legitimate reason for terminating an unlimited contract, whats the standards for distinguishing or determining such authentic reason, and who has the authority to determine whether the reason for termination is valid or not? Compensation for arbitrary dismissal of an employee In addition to compensation, the employee can claim his gratuity, notice period dues or any other unpaid dues he is entitled to, from his employer. We promise not to bother you often! Well send you latest news updates through the day. Give us your feedback so we can improve your experience. If you want to know more regarding arbitrary dismissal and wrongful termination, talk to HHSLabour lawyersin UAE and employment lawyers in Dubai. Redundancy and restructuring in the UAE - Pinsent Masons An employee is under the influence of alcohol or illegal drugs in the course of working in the office. The next generation search tool for finding the right lawyer for you. In this case, the failure of the employer to do the above will make his action of terminating the employee for that reason an unfair dismissal. adopts a false identity or submits forged documents or certificates. Ultimately any disciplinary sanction taken should always be justifiable, be supported by written evidence, be subject to a reasonable disciplinary procedure and considered in light of the particular circumstances of the case and the requirements of the UAE Labour Law. If the effort to compromise fails, and if resolution between the parties, particularly an employee and employer, cannot be achieved, The MOHRE refers the case to a competent court. Published: Sun 8 Apr 2018, 1:40 PM. Q: Good day, I have a question about my contract being terminated in the UAE. For Sales Enquiries: sales@hhslawyers.com. Secondly, demotion in the position of the employee with reduction of salary can be taken into consideration as arbitrary dismissal allowing the employee to register a complaint, however, decision in this regards is completely a discretion of the court, depending upon various factors, which can be explained to you by your Employment Lawyer. Landline: +971 4 2555496 (9AM - 7PM GMT+4 - Monday to Friday) violates instructions concerning safety of the workers and the place of business provided that such instructions were displayed in writing at conspicuous places or verbally informed to an illiterate employee, fails to perform his basic duties under the employment contract and persists in violating them despite warning him twice of dismissal, if the same is repeated, divulges any secrets of the establishment resulting in losses or a missed opportunity to the employer, or achieving a personal benefit for self, is found to be drunk or under the influence of prohibited drugs during working hours, or commits an action breaching the public morals at the workplace, assaults the employer, the manager or any of his colleagues during the course of his work, absents himself without lawful excuse for more than 20 intermittent days or more than 7 successive days during one year, exploits his position illegally to obtain personal results and gains. You can contact us and book a consultation today for you to experience what we are capable of doing for you with the knowledge what we have in our sleeves as being one of the top law firms in Dubai. When an employee violates the instructions related to safety at the workplace, provided that such instructions are written and posted in a prominent location. Ministerial Resolution No. The ministry will try to solve the issue amicably. Article 47 Arbitrary Dismissal - of the new labour law dictates the rights of a worker if their employer terminates them without providing a justifiable reason. As per the law, if a worker can prove, through a complaint filed with the Ministry of Human Resources and Emiratisation (MOHRE) that the employer arbitrarily dismissed the worker, and the complaint. There is a list of reasons that a termination can indeed be done by an employer without any notice at all. HHS Lawyers & Legal Consultants has been dealing with legal matters and dilemmas of individuals and businesses for 10 years now. Among the various provisions outlined in the legislation is Article 47, which addresses the circumstances surrounding an employees arbitral termination. Where a worker is arbitrarily dismissed, the competent court may order the employer to pay him compensation. Interpretation of labor laws is complicated, try to seek legal advice from employment lawyers who are experts in dealing with employment laws. An employer is not permitted to fire an employee if he/she refuses to commit an illegal act. This kind of dismissal is usually against the rules and regulations that are laid down by the government through a countrys labour law. An employee is dismissed during the probation period. As per the law, if a worker can prove, through a complaint filed with the Ministry of Human Resources and Emiratisation (MOHRE) that the employer arbitrarily dismissed the worker, and the complaint is proven to be a valid one by the Ministry, the worker will be entitled to the compensation for arbitrary dismissal. This article was written for and originally published by Economy Middle East: Disciplinary action and Arbitrary Dismissal in the UAE. For this, it means that the dismissal is unjustifiable and unreasonable and needs to be looked into. An employees services are deemed to be terminated by the employer if the reason for termination is not relevant to the employee and more particular if the employee has submitted a serious complaint to the competent authorities or has instituted legal proceedings against the employer that has proved valid. Following are the situations in which an employment contract may be terminated as per, Federal Decree Law No. After termination or expiry of the contract, you will get a grace period from the date of cancellation, in which you can either obtain a new work permit and residency or leave the country. The ministry will try to solve the issue amicably. This compensation amount shall be calculated based on factors such as: the extent of harm suffered by the employee, and. Following are the situations in which an employment contract may be terminated as per Article 42 of theFederal Decree Law No. From the above mentioned, there is no doubt that the right of termination of an unlimited contract under the Labour Law isnt an unfettered right and is subject to the requirement that an employer demonstrates the existence of a legitimate reason for such a termination. Review your content's performance and reach. Frequently featured in local and international legal directories and commended for his ability to attain favorable outcomes for clients, Hassan has been involved in some of the largest legal settlements. The Content in this website reflects, presents, and explains, only Al Shaiba Advocates & Legal Consultants. Once it is transferred to the competent court, the worker will be supplied with the link or reference to proceed further with the court of law.Having regard to all the facts and therefore the applicable legislation, if its proven that worker has been arbitrarily terminated, the court will command the employer to pay a proper compensation to the worker as early as possible. Please refer to Ministry of Human Resources and Emiratisation (MoHRE) and Federal Authorityfor Identity, Citizenship, Customs & Ports Security (ICP) for information and services regarding grace periods, new work permits and residency. 33 of 2021 Regulating Labor Relations, was implemented on February 2, 2022. 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. Unjust/Unlawful firing from your employer or requiring an individual to quit their employment without offering any reasonable cause are examples of unjust/unlawful dismissals. In addition, where the employee receives regular or guaranteed bonus or commission payments, these may also be taken into account by the Court when determining the employees remuneration. Our team helps the employee to register the complaint with MOHRE and to supply the exact calculation of employees total dues from his company to MOHRE. If arbitrary dismissal is proven to be true, then the court can order the employee to compensate the employee under Article 123 of the UAE Labour Law. This would provide employees with better legal protections and compensation in cases of arbitrary dismissal. From towering skyscrapers to ground-breaking infrastructure projects, the region has gathered worldwide recognition for pushing the boundaries of architectural excellence. Threats are usually verbal intimidation in which an employer will threaten an employee that he will terminate him, damage his property, or make up an issue regarding his performance to simply compel him to resign. If an employee believes that he has been dismissed illegally, he can complain to, Ministry of Human Resources and Emiratisation. Compensation of cases where termination was arbitral . For Sales Enquiries: sales@hhslawyers.com. 1. If the worker has accomplished his employment lesser than 1 year and above 6 months, the notice period is 1 week. 2, what must be the idea for identifying such a legitimate reason? In this regards, it is important to note that the word arbitrary is vague and the law has not mentioned the grounds in which any dismissal will be arbitrary.
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