'I was sacked over damaged machine'

I live in Dubai. I have worked in a factory for more than three years. Last month, my manager terminated my services because the machine I was using got damaged. The manager claimed that the machine was my responsibility. He added that my services were terminated under clause 120 of the UAE Labour Law, which means that I will not be paid my end-of-service benefits. The company will also seek a one-year ban against me. I sent an email to the company explaining that the machine was damaged because it was not serviced for a long time, but my manager insists that I am responsible.

Article 120 of Federal Law No 8 of 1980 paragraph C states: “If a worker makes a mistake resulting in substantial material loss to the employer, the latter is required to notify the labour department within 48 hours of becoming aware of the incident.” Therefore, as per paragraph C of the article, in this case if the employer has not reported the incident within 48 hours, the employer has no right to terminate the questioner’s services for that reason. Such a termination might be considered arbitrary dismissal under the UAE labour law.

Contract termination

I live in Dubai. My company has terminated my services with immediate effect. The management does not want to pay notice period compensation because of an agreement I signed agreeing to forfeit the amount. The agreement also mentioned that the employer has the right to terminate an employee without reason. In my labour contract, however, a one-month notice period is mandatory. This agreement was signed six months after the labour contract was signed. Under the UAE labour law, does the company has the right not to pay notice period compensation? I was ready to serve out the notice period, but the company did not allow me to do so.

Article 118 of Federal Law No 8 of 1980 states: “A contract shall continue to be valid throughout the notice period referred to in the preceding article and shall only be terminate on the expiry of the notice period. The worker shall be entitled to full pay calculated on the basis of his last remuneration and he shall be required to performs his work during that period if the employer so desires.”

The parties may not agree to dispense with the requirement as to notice or to reduce the period of notice, but may agree to increase it. Therefore, this matter in the side agreement will be considered void.

Questions answered by advocate Mohammad Ebrahim Al Shaiba of Al Shaiba Advocates and Legal Consultants.