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Arbitrary/Unfair Termination & Compensation

Arbitrary/Unfair Termination & Compensation

If a worker’s contract is unfairly terminated or forced to resign in the United Arab Emirates, he will be compensated as well as all of his dues, and he will be qualified for an employment experience certificate under UAE law. If you believe your employer sacked you without cause in violation of UAE Labour Law, Article 123, and it is proven that the termination was arbitrary, the honorable court will order the company to pay you compensation.

Our legal team can assist you in obtaining your rights under UAE labor legislation. We examine your movements and make recommendations for how to proceed in order to protect your rights under UAE labor law. We can aid you in future litigation if a laborer believes he or she has been unfairly dismissed or that his or her employer has breached the articles, regardless of whether your contract is limitless or limited.

So, what are your options?

Employees can contact the Ministry of Human Resource and Emiratisation (MOHRE) at 80060 to report an issue. MOHRE investigates complaints and attempts to mediate between the employer and the employee in the first instance.

We help the employee file a complaint with MOHRE and provide an accurate computation of his company’s overall payments to MOHRE. The MOHRE submits the case to a competent court if the attempt at compromise fails and a resolution between the parties, notably an employee and employer, cannot be reached.

Termination of Employment Contracts If it is established that the worker was arbitrarily terminated after evaluating all the facts and thus the applicable legislation, the court will order the employer to provide proper compensation to the worker. The amount of compensation is determined by the length of employment and the manner in which it was terminated.

Termination of a Contract of Limited Employment

The employee may only be fired by the employer after the contract has expired, according to the law. Early or premature termination of a limited contract is permitted only and exclusively in the event of any of the events listed in Article 120 of the utilization/employment legislation.

If the contract is terminated for reasons other than personal or labor law, the employer will be held liable for compensation equal to three months’ salary or the remainder of the contract, whichever is shorter. Certain rules for termination have been established by employment law, which the employer must follow.

Termination of a Contract of Unlimited Employment

After delivering the requisite notice, the employer has the right to terminate an unlimited contract without giving a reason, and the employee has many options. However, there is still significant ambiguity about how to end an infinite labor contract, particularly among firms.

  1. Any of the parties to an unlimited contract may terminate it at any time for a justifiable reason, provided that notice is given to the other party prior to the expiration of 30 days.
  2. For employees who are paid on a daily basis, the notice period must be as specified below.
    • A) The notice period is one week if the employee works for less than a year but more than six months.
    • B) Employees who have worked for the company for more than a year are entitled to two weeks’ notice.
    • C) The notice period is one month if the person has worked for at least five years.

After reading the material carefully, we’ll come to the conclusion that an employer’s authority to terminate an infinite contract only for good reason is absurd. When it comes to the end of an unlimited contract, Article 113 section 3 specifies that it can only be ended by one of the parties if the grounds for termination is acceptable and notice is given on time.

Then there’s the matter of

  1. What constitutes a valid justification for terminating an unlimited contract?
  2. What idea must be used to recognize such a valid reason?
  3. Who is the legal authority that will judge if the termination rationale is lawful or not?
The following is stated in Article 122 of the Labour Law:

“An employee is considered to have been arbitrarily dismissed by his employer if the reason for the dismissal is unrelated to the job, and more specifically, if the reason is that the worker has filed a significant complaint with the appropriate authorities or has initiated valid legal proceedings against the employer.”

There is typically a lot of confusion when it comes to terminating an unlimited contract, especially among organizations. There are a host of employment myths that are commonly employed to both companies and employees’ detriment. One of these myths is that an employer is tolerant of terminating an unlimited employment contract without cause after providing the required notice.

This myth is based on a misunderstanding of Article 117 of the Labour Law, which reads as follows:

  1. Both the employer and the employee have the right to terminate an unlimited contract for good reason at any time throughout the contract’s term after it has been assumed by giving the other party written notice fewer than 30 days before the termination.
  2. For a worker who works on a regular basis, the notice period must be:
    • One week’s notice if the worker has been on the job for more than six months but less than a year;
    • two weeks’ notice if the worker has been on the job for at least a year;
    • one month’s notice if the employee has been with the company for at least five years.”

A thorough reading of the aforementioned Article indicates that the power of an employer to terminate an unlimited-term contract is conditional on the presence of a “legitimate reason.” Under Article 113, section 3, the legal grounds for terminating the contract are “provided the provisions of the law regarding notice and justifiable reasons for termination are followed.”

Following that, the inquiry will determine what is considered to be a legitimate cause for canceling an unlimited contract, as well as the criteria for determining whether or not such real reason exists. Who has the power to decide if the reason for cancellation is valid or not?

It is already established that employers may terminate employment contracts (whether limited or unlimited) with immediate effect for reasons indicated in article 120 of the Labour Law. In addition to these circumstances, the Labour Law states that an appropriate cause for terminating a continuous contact should be one that is “work-related.” Article 122 of the Labour Law says: The following are examples of legitimate reasons for terminating an unlimited contract:

“If the reason for the termination is unrelated to his job and, more specifically, if the rationale is that he has made a serious allegation/complaint against his employer that has subsequently proven to be true, his service shall be presumed to have been unlawfully/arbitrarily terminated by his employer.”

The right to terminate an unlimited contract without cause under the Labour Law isn’t a free right, as the preceding shows, and it is contingent on an employer proving a legitimate reason for such a termination.

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