Six months ago, my husband died in an accident at his workplace. When I approached his company for compensation in accordance with the law, I was told that as per company policy I was not entitled to it as we don’t have children. I have been trying to reach an amicable settlement with the company, but all it is offering me is a very small amount. What is my status as per the UAE labour law? How do I calculate the compensation due to me? Is the compensation to be paid to any other family member?

Article 149 of Federal Labour Law No 8 of 1980 states that where a worker dies as a result of an employment accident, or an occupational disease, the members of his family shall be entitled to compensation equal to his basic remuneration for 24 months provided that the amount is not less than Dh18,000, or more than Dh35,000. The amount will be calculated on the basis of the last remuneration received by the worker. The compensation shall be distributed among the deceased worker’s dependants in accordance with the provisions of schedule 3 attached to this law.

The expression ‘deceased worker’s family’ refers to people wholly, or principally, dependant for their subsistence on the deceased worker’s income at the time of his death. They include widow or widower, children, parents and siblings.

The term ‘sons’ includes children in the deceased worker’s care at the time of his/her death, namely sons who are under 17 years of age, sons who enrolled in educational institutions and are under 24 years of age, and sons who are mentally or physically unable to earn a living.

Unmarried daughters who were in the deceased worker’s care at the time of his/her death.

Siblings of the deceased include brothers and sisters and are subject to the conditions prescribed for sons and daughters.

Therefore, the deceased employee’s widow has the right to claim compensation even if she does not have children. The company policy is not applicable since it is in violation of the UAE labour law.

Termination of services

I have worked in a company for more than two years. A month ago, my employer informed me that he is going to shut down the department where I work as he needed to cut down on expenses. He also told me that my services would be terminated in three months. Is the employer’s decision to terminate my services due to closure of a department legal? Will such a termination be considered arbitrary dismissal?

In the event of financial trouble, the law allows an employer to restructure his company in accordance with its economic activities and take necessary measures to mitigate losses. Therefore, the employer’s decision to shut down a department, or terminate certain jobs in such a department, for the purpose of restructuring is valid provided that he follows the proper legal procedure to terminate an employee’s services.

Therefore, termination of services in this situation will not be considered arbitrary dismissal.

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