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For Sales Enquiries: sales@hhslawyers.com. is a Senior Partner in HHS Lawyers. 2023 HHS Lawyers A Registered Trademark, Licensed to HHS Legal Services F.Z.C - UAE . Hazim Darwish, is a Senior Partner of HHS Lawyers in UAE. UAE Legal Reforms New Labour Law - CMS LAW-NOW A dismissal of a worker by his employer shall be arbitrary if the worker submits a serious complaint to the Ministry or files an action proven to be valid against the employer.2. joins another establishment without abiding by the rules and procedures in this regard. The early or premature termination of limited contract is permitted only and exclusively at the occurrence of any such situations which is expressed in article 120 of the utilization/employment law. 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. 1 of 2022 on the Implementation Regulation of 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, Ministry of Human Resources and Emiratisation (MoHRE) and, Federal Authorityfor Identity, Citizenship, Customs & Ports Security. You would need your passport details and work permit (labour card) number to do so. However, the compensation shall not exceed the equivalent of three months wages based on the employees most recent salary. On the side of the employers, they must provide proof or evidence of their claim that the employee is dismissed with a good and substantial basis, like an employee is incapable to perform responsibilities, misconduct, not qualified, etc. You can manage them any time by clicking on the notification icon. For these purposes, remuneration is the employees full pay (basic salary plus any monthly allowances). 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. d - Deprivation from or deferment of periodic bonus in establishments having a system for such bonuses. 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. This has solidified its reputation as the prime destination for travellers and business visitors. For employees getting wages on day to day basis , the notice period must be as furnished hereunder; Once we undergo the article carefully, we will figure out that an employers right to terminate an unlimited contract should be only on a legitimate reason. 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. Validity of Marriage Certificates in the Courts of UAE. "Should the worker be arbitrarily dismissed, the competent court may order the employer to pay a compensation to the worker. A dismissal of an employee by his employer shall be arbitrary if the employee submits a serious complaint to the Ministry, or files an action proven to be valid against the employer. I was verbally informed of my contract being ended due to redundancy on 6th October with no requirement to work the notice period. with the legal procedure. 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. You can file a complaint with MOHRE through the following options:1. If the worker has accomplished his employment not lesser than 5 years, the notice period must be 1 month. What Should You Do? Compensation for arbitrary dismissal . When an employee violates the instructions related to safety at the workplace, provided that such instructions are written and posted in a prominent location. 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. Can arbitrarily terminated employees get more the 3 month-salary in ALL RIGHTS RESERVED. 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? your employer terminates the contract without giving you a reason . Become your target audiences go-to resource for todays hottest topics. For completeness, any type of dismissal of a UAE national employee requires the employer to notify the Ministry of Labour 30 days prior to confirming its decision. An employer must initiate the disciplinary procedure within 30 calendar days of discovering the misconduct and any disciplinary sanction must be determined within 60 calendar days of the investigation being concluded. filing a complaint to MoHRE or filing a lawsuit against the employer, whose validity is proven, then such termination is illegal. A: Yes. All rights reserved. Everything you should know about Losing your Job in UAE 33 of 2021 on the Regulation of Labour Relations in the Private Sector,the UAE Labour Law, if the term of the contract expires and is not, extended or renewed, if both, the employer and employee mutually agree in writing to end it, if either party wishes to end it, provided that the terminating party observes the provisions of termination of the employment contract and the notice period agreed upon (details below), in the event of the employers death if the subject of the contract is related to its entity, in the event of the workers death or full permanent inability to work, based on a certificate issued by a medical entity, where a worker faces a final court judgement of a freedom-restricting penalty for a period of not less than three months, if the establishment is closed permanently, in accordance with the legislations in force in the UAE, if the employer becomes bankrupt or insolvent, or faces any economic or exceptional reasons that prevent the continuation of the project. We hope you enjoy this issue, and should you have any comments or questions, please do not hesitate to reach out to any of the lawyers who have contributed. 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. COPYRIGHT 2021 LEGAL SOLUTIONS MIDDLE EAST FZE. 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. There can be cases that an employee is a reason that a company suffers a great loss in revenue or something else entirely. 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. Compensation for employee arbitrary dismissal In addition to payments mentioned above, labour courts in UAE may award employees compensation in relation to arbitrary dismissal. 1. June 1, 2023 Disciplinary action and Arbitrary Dismissal in the UAE Discrepancies between the new laws on unfair dismissal and recent precedents subscription, ePaper If an employee is convicted by the competent court in a crime of honor, honesty or public ethics. WhatsApp (Messaging Only): +971 52 1782469 He has 20 years of experience dealing with high-value and complex cases. If arbitrary dismissal is proven, the court will order the employer to pay a compensation to the employee. Confusion always rises when it comes to the dismissal of an unlimited contract especially amongst employers. Enter your e-mail below to subscribe to our free newsletter. The court shall assess such compensation, taking into account the type of work and the extent of damage incurred to the worker as well as the duration of employment and after the investigation of the work conditions. If an amicable settlement is not reached, the case will be referred to the respective court. There is a difference between lawful and unjust dismissals, as well as sensible and unlawful dismissals. Dubai - An employee should be notified in writing for non-performance of work. Innovation, Patents & Industrial Property (3IP), terminate an employee working under an unlimited term contract, Disciplinary Action and Arbitrary Dismissal in the UAE. This kind of dismissal is usually against the rules and regulations that are laid down by the government through a country's labour law. a - Warning. You are allowed to voice out your side to the Ministry of Labour, and if an amicable settlement is not reached, it shall be moved to the courts. 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 an employee has faced any assault from the employer during the working hours, contract termination can be on the basis of arbitrary dismissal. 1. A court shall access the amount of compensation with due regard to the nature of the work, and the amount of prejudice in a particular case. Making Employee Roles Redundant Due to COVID-19 | UAE Labour Law Visa 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. If the worker has accomplished his employment for 1 year or above, the notice period is 2 weeks. 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 is documentary evidence supporting the poor performance or misconduct). 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. . Hazim Darwish, is a Senior Partner of HHS Lawyers in UAE. Inheritance Law in the UAE: Procedures and its Implementation, New labour laws will change work in the UAE, find out how. Book an appointment with us, or search the directory to find the right lawyer for you directly through the app. 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. 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. 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. But if you want a quick answer or have something pretty simple going on then just give us a call and one of our advisors will be happy to help out as soon as possible! The court shall assess such compensation with due regard to the nature of the work,. This reason will not be termed as arbitrary dismissal so no additional salary will be payable. 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. 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. We deal with clients and people in general in a professional manner that is expected from excellent legal consultants in Dubai. The New Labour Law is a revamp of the UAE's employment . When an employee assumes a false identity or nationality or submits false documents. The allowance for the notice period is calculated according to the last wage received by the worker. The maximum compensation expected for arbitrary dismissal - Q&A - Legal Advice Middle East Q: I am pursuing a case against my employer for Arbitrary Dismissal. The actual amount of the award, if any, is ultimately determined by the Court. The Ministry will make efforts to resolve the matter through amicable means. Arbitrary dismissal occurs when an employer terminates the contract by unfair or insufficient reason. 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. 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. 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. Arbitrary dismissal claim for termination due to restructuring. TASHEEL LEGAL CONSULTANCY LLC All Rights Reserved 2021, Personal Injury & Compensation Law In UAE. 14 Days Written Notice if the employee wants to leave UAE. Compensation of cases where termination was arbitral . Either party can terminate an employment contract provided he/she serves notice period and complies with the other legal consequences of the termination. For Consultation: expert@hhslawyers.com Arbitrary Dismissal in UAE - LSME | Legal Solutions Middle East Once you file a complaint, you will receive a call within 72 working hours from a legal advisor, who will try to initially find an amicable solution to the issue. Dubai - Worker may be entitled to claim compensation for arbitrary dismissal in addition to what is being offered by her employer By Ashish Mehta Published: Thu 26 Jan 2017, 1:13 PM The next generation search tool for finding the right lawyer for you. Whether an employee will be successful with any such claim will ultimately depend on the reason for the termination and the process the employer undertook prior to terminating the employment. Employers cannot terminate on the basis of race, nationality, religion, gender, or age. My employer is bound to compensate me. This would provide employees with better legal protections and compensation in cases of arbitrary dismissal. UAE: Fired from your job without a valid reason? Here are your legal 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. Download the MOHRE app and file a labour complaint3. 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. Find out. U.ae, Terminating employment contracts and arbitrary dismissal. This section is about Living in UAE and essential information you cannot live without. 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. Call the Ministrys hotline on 800 60.2. Revamp of the UAE Labour Law - Bird & Bird Landline: +971 4 2555496 (9AM - 7PM GMT+4 - Monday to Friday) 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. If any employer terminates the employment of an employee without any valid reason, it may be termed as arbitrary termination. Compensation, unpaid dues, or other benefits that are not given to the employee can be claimed. You can read our detailed guide on the process that is followed by MOHRE centres, when an employee files a labour complaint, here. Disclaimer: You are using Google Translate. The provisions of paragraph (2) above shall not prejudice the right of worker to the pay in lieu of notice and severance pay due to him under the provisions hereof. Along with the above-mentioned payments, the Labour Courts may also award employees with compensation for "arbitrary dismissal". The UAE mGovernment is not responsible for the accuracy of information in the translated language. The ministry will try to solve the issue amicably. 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. Reasons such as. 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? UAE labor lawrecognizes that there may be circumstances in which an employee is unfairly dismissed and expressly provides the right of an employee to claim compensation. The employment law has established certain rules for termination that the employer must adhere to. subscription, Print 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. The compensation amount will be determined by considering various factors. 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. 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. 'What happens to my benefits if I lose my job while outside the UAE?' If the employee fails to perform his duties in accordance with the employment contract and fails to remedy such failure despite a written investigation on the matter and a repetitive warning in case of performance issues. The employer shall pay the worker a fair compensation estimated by the competent Court, if it is found that the dismissal is arbitrary pursuant to paragraph (1) above.The amount of compensation shall be determined based on the type of work, the extent of harm sustained by the worker and the length of his service. In accordance with UAE Law, if a worker whose contract is unfairly terminated without a proper warning or force him to resign . 3, who is that legal authority to decide whether or not the termination rationale is valid? For Consultation: expert@hhslawyers.com In all cases, the amount of compensation must not exceed the wage of the employee for a period of three months, calculated on the basis of the last wage he was entitled to. When an employee is arbitrarily dismissed, UAE courts may order the employer to provide employee compensation. Fifty One Tower Unit 1601 Marasi Dr Dubai UAE. This compensation amount shall be calculated based on factors such as: the extent of harm suffered by the employee, and. Disciplinary Action And Arbitrary Dismissal In The UAE - Employee For this, it means that the dismissal is unjustifiable and unreasonable and needs to be looked into. An employee is considered to have been arbitrarily dismissed by his employer, if the cause for the dismissal is irrelevant to the work, and more specifically, if the reason is that the worker has submitted a significant complaint to the competent authorities or has instituted legal proceedings against the employer that have proven to be valid. 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.