The employee is protected by the UAE Labour Law from cases of arbitrary dismissal and employees can bring up complaints with the Ministry of Labour for any such instances as mentioned below.
What is arbitrary dismissal?
In accordance with Article 123 of the UAE Labour Law, arbitrary dismissal allows the employee to claim compensation which does not affect his gratuity and/or compensation in lieu of notice entitled.
Here are five things we learned from Ask the Law this month:
1. Dismissal for failing to meet sales targets
UAE Labour Law does not allow dismissal of employees on the reason of failure to achieve sales targets as the employee may have not been able to do so due to market conditions or other uncontrollable factors despite putting in the hard work. Any dismissal with this as a reason may be considered an arbitrary dismissal.
Read our Ask the Law story regarding this here
2. Dismissal for damaging company machine
As per Article 120 of the Labour Law, an employee can be dismissed if he commits an error resulting in material losses to employer only if the employer notifies the Labour Department of any such incidents within 48 hours. If the firm dismisses the employee without any such notification within the 48-hour period, this may be considered an arbitrary dismissal.
Read our Ask the Law story specific to this here.
3. Downgrading or removing designations
According to the law, downgrading an employee is considered a form of arbitrary dismissal. The firm is also not allowed to terminate an employee who does not accept downgrading as this can be considered as arbitrary dismissal. In these cases, the employee should file a complaint against the company.
Read our Ask the Law story specific to this here.
However, the Dubai Cassation Court allows the employer to restructure in accordance with its economic activities and take the necessary means to prevent the risks of loss, which might occur to the company. This may lead to cancellation of jobs or downgrading of current employees. This is a legal procedure as long as the proceedings are not intended to harm the employee. Termination on these grounds is a valid dismissal.
Read our Ask the Law story specific to this here
4. Reduction of pay or increase in work-hours
According to Article 65, the maximum normal hours of work for an adult is 8 hours per day or 48 hours per week. The hours may be increased to nine in establishments authorized by the Ministry of Labour. Any increase in work hours should be compensated with overtime pay as well.
As per the UAE Labour Law, your employer is not allowed to reduce your salary agreed upon in the contract or increase working hours or any other terms of contract. Any disagreement to such change from the employee cannot be considered a reason for dismissal and if such dismissal happens, it would be considered arbitrary.
Read our Ask the Law story specific to this here
5. Change to probation period or notice period
According to Article 37, your probation period cannot be extended beyond six months and this period should be accounted towards end-of-service benefits. The employee can be terminated without notice in such period. See more here
The notice period signed by the employee in the labour contract cannot be decreased or forgone as per the UAE Labour Law. The notice period can be increased with consent of both parties.
Read our Ask the Law story specific to this here.
Original questions compiled by Bassam Za’Za, Gulf News Legal and Court Correspondent, and answered by advocate Mohammad Ebrahim Al Shaiba of Al Shaiba Advocates and Legal Consultants.
Ministry of Labour call centre For any Labour issues, call 800 665
Locate your nearest Ministry of Labour office
Gulf News is not responsible for any amendments made to the UAE Labour Law. All labour disputes must go through the Ministry of Labour.
