I live in Dubai. I have been working in a company as a project engineer for the last 10 months. Due to the financial crisis that my company is facing, as per my company manager, the management wants to restructure manpower. If the employer terminates my contract, what are the benefits that I can expect as per the law? I have also taken a personal loan. What can I do about it? My contract is for a limited period of two years. If the company is facing a problem, why did it sign a limited contract with me? If the company sends my termination via email, will that be considered a legal termination?
Dismissal of an employee without a legal reason or dismissal due to financial crisis, which the companies use as an excuse, is an arbitrary dismissal specially since the questioner is having a limited labour contract. Breaking such a contract is against the labour law. The questioner is entitled to claim compensation for breaking the limited contract. The compensation will be decided by the court concerned. Regarding the other dues, the questioner is not entitled to end-of-service gratuity as he has not completed a year, but the questioner is entitled to claim two days’ salary for each month which is compensation for the annual leave. As for the personal loan, the Labour Court does not consider such matter. Finally, if either party — the employee or the employer — sends the termination of the contract via email, that termination is considered valid as per the UAE labour Court.
After employer dies
I live in Dubai. I have been working in a company for more than two years. Two months ago, my employer died. He was the one who had signed my labour contract. My labour contract will expire in 2017. My question is: 1.) As per the UAE labour law, can my labour contract in this case be considered expired. 2.) Is the labour contract considered expired in case the employee is totally unable to work. Please advise.
This comes under the UAE Labour Law (Federal Law No. 8 of 1980, clause No. 114) which mentions the following:
A contract of employment shall not terminate by reason of the employer’s death, unless the subject of the contract is connected with his person. A contract shall, however, be terminated by reason of the workers’ death or his total incapacity to work, where the latter is established by a medical certificate approved by the health authority competent in the Sate:
Provided that where a worker’s partial capacity to perform his work permits him to perform other work consistent with his state of health, the employer shall, if such other work is available and he so request, transfer him to it and pay him the remuneration normally paid in similar cases, without prejudice to any entitlements and compensation due to him in accordance with this law.
Questions answered by advocate Mohammad Ebrahim Al Shaiba of Al Shaiba Advocates and Legal Consultants.
