Employment Rights and Redundancy Under UAE Labour Law
According to the UAE Labour Law, an employer is not permitted to make an employee redundant for being pregnant or while on maternity leave. The UAE Labour Law makes no specific reference to termination during pregnancy or maternity leave but an employer is not permitted to make an employee redundant for being pregnant or when on maternity leave.
Understanding Arbitrary Dismissal
Even if someone is on an unlimited contract of employment, which means they can generally be terminated at any time, there still has to be a valid reason. In many cases, this will be for financial reasons or performance issues. The issue of arbitrary dismissal is covered in Article 122 of the Labour Law which states: “The termination of the employment of the worker by the employer shall be deemed arbitrary should the cause of termination not be related to the work … ”
Article 123 says: “Should the worker be arbitrarily dismissed, the competent court may order the employer to pay a compensation to the worker.” This assumes that the employee has been working for a mainland company or a free zone that has adopted UAE Labour Law.
Compensation Limits and Assessment
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.
| Criteria | Details according to Article 123 |
|---|---|
| Maximum Compensation | Shall not exceed the wage of the worker for a period of three months. |
| Calculation Basis | Calculated on the basis of the last due wage. |
| Assessment Factors | Type of work, extent of damage, and duration of employment. |
Procedures for Final Settlement
There is no mention of when exactly the gratuity and redundancy compensation should be paid but it ought to be paid at the time the visa is cancelled and the professional work relationship ends. The usual procedure is that an employee is asked to sign paperwork to confirm they have received all money owed to them before visa cancellation, so they should be paid on the last day they are an employee. There are cases where the employer has financial issues and requests whether the dues can be paid over a specified time frame but this should only happen with the employee’s agreement.
Steps to Take for Legal Recourse
If the employer is not paying what is owed, the standard course of action is to register a case against them with the Ministry of Human Resources and Emiratisation (MoHRE). An employee has grounds to register a complaint for arbitrary dismissal at the Ministry. The recommended course of action includes the following contact methods:
- Contact the MoHRE directly on 800 60.
- Visit the website www.mohre.gov.ae.
- Use the online chat function on the contact page for initial enquiries and complaints.
There is no cost to the employee and there should be no consequences other than to enforce the employer to pay what is owed. Taking action to be paid the money legally owed is necessary when an employer is not replying to emails or if dues are still being processed beyond a reasonable time frame.