If the employer does not follow a prescribed procedure, as described in the answer to question 7, what are the consequences for the employer? If an employer claims to terminate an employee`s services by any means other than in accordance with the requirements of the Labour Code, such dismissal would be considered illegal. A somewhat related problem is that many multinational employers maintain savings or retirement plans designed to offer the same benefits as those provided by the local tip at the end of the service. An often unintended consequence is that a departing employee can receive both benefits. The employer violates whether it dismissed the UAE national for no reason, hired a foreign worker for a similar role, or failed to pay the employee what he or she was entitled to. If the employer has unlawfully dismissed such a UAE national employee, the ministry can block any new work permit issued to the employer until the matter is resolved by the courts. A multinational company should keep in mind that an employee in the UAE may receive employment benefits under UAE law, as well as the laws of the employee`s home country. An employer is not required to give an indication of new employers. However, at the request of the employee at the end of his employment relationship, the employer must provide him with a certificate of termination of service. This certificate should include the start and end date of the employment, the total duration, the nature of the work performed, and the last wage paid to the worker (plus details of any other compensation). There are no restrictions on confidentiality under the Labour Code. If an employee terminates his contract of indefinite duration, he is entitled to the following bonus: (i) one third if he ends during the first and third years of his employment, (ii) two-thirds if he resigns during the third and fifth years, and (iii) the full bonus if he ends after the fifth year. Arbitrary or wrongful dismissal occurs when an employer withdraws an employee`s dismissal or forces the employee to dismiss without just cause.
A fixed-term or open-ended employment contract may be terminated by either party without notice in accordance with the UAE Labour Code. Article 120 of the UAE Labour Party sets out the reasons why dismissal without notice is legal. . An employee may not waive his rights under the Labour Code. However, the Criminal Code and the Money Laundering Act contain provisions on the protection of whistleblowers. If the services of a foreign worker outside the UAE end, the employer is responsible for following the procedures for terminating the employee`s work permit and residency visa and returning the employee to their country of employment. In addition, the Labour Code stipulates that a woman must be paid in the same way as a man if she performs the same role. An employment contract of indefinite duration requires 30 days` notice of termination in writing.
An employment contract must be terminated individually. There are no special provisions in Article 120 of the UAE Labour Code for collective redundancies. Please note that the DIFC has a separate legal framework for labour matters. If an employee is employed by an employer for at least twelve months without interruption, he is entitled to gratuities at the end of his employment relationship. Tips at the end of the service will be calculated as follows: In addition to compensation, the employee may claim his tip, notice period or other unpaid fees due to him from his employer. Tipping at the end of the service, if the employer terminates the contract (fixed-term contracts of indefinite duration) If an employer intends to terminate a fixed-term contract for reasons other than those referred to in Articles 120 or 88 before the end date, he is obliged to pay to the employment allowance a maximum amount of 3 months` salary or the remaining duration of the contract; depending on what is shorter. A fixed-term contract can be terminated for the following reasons: If it is determined that an employee has been fired for any of the above reasons, he will lose his right to tip at the end of the service. Termination of the contract without notice by the employer In addition, some acts of harassment could reach the level of criminal offenses, and some acts of discrimination could violate other laws. For example, Federal Legislative Decree No. 2 of 2015 introduced general restrictions on discrimination and hate crimes.
It provides that a person may not be discriminated against on the basis of religion, beliefs, doctrine, sect, caste, race, colour or ethnic origin. This law could apply to discrimination in an employment context, whether during the recruitment process or during employment. . Although the Labour Code provides for the use of non-compete obligations, there is no right to an injunction in the courts of the United Arab Emirates, so such clauses can be difficult to enforce. If an employee believes that he has been dismissed illegally, he can file a complaint with the Ministry of Human Resources and Emiratization. The ministry will try to resolve the issue amicably. If there is no out-of-court settlement, the case will be referred to the court concerned. An employee may terminate an employment contract without notice if: An employee is not entitled to remuneration at the end of the period of service, unless he has been employed continuously for more than 5 years.
In these circumstances, the end of the period of service is calculated as if the employee had terminated the employment relationship on the basis of a contract of indefinite duration. A non-compete obligation may be used in an employment contract. However, such a clause would only be valid if the employee was at least 21 years of age at the time of signing his employment contract, if it is limited to a limited period (one year is generally considered appropriate), the place, the nature and only to the extent necessary to protect the employer`s undertaking. . For each of the employees who will not change, the employer must comply with the dismissal provisions of the Labor Code, Federal Law No. 8 of 1980 and Article 120 of the Labor Code of the United Arab Emirates as amended. If the employer or employee terminates the contract in violation of the Labour Code, he is obliged to pay compensation to the other party as follows: 1. In the event of non-compliance on the part of the employer, the compensation is the lower of three months` salary or the salary that would have been paid for the remainder of the contract (unless the employment contract provides for a higher amount); 2. and in the event of default by the employee, the indemnity is limited to half of the amount that the employer would pay in the event of default by the employer. Each party may terminate the original contract or a contract renewed individually, provided that it respects the legal consequences of early termination, including: Although these laws may not apply to free zones, most free zones follow them. If an employee believes that he has been dismissed illegally, he can file a complaint with the Ministry of Human Resources and Emiratization. He will try to solve the problem warmly.
If there is no cordial agreement, this case will be referred to the court concerned. However, the following notice periods apply to workers who are paid daily: 1. one week in advance if the employee has been employed for six months to one year;2. two weeks` notice if the employee has been employed for at least one year;3. and one month if the employee has been employed for at least five years. An employer may terminate a fixed-term contract before the expiry of the date if it can be shown that the worker has breached any of the grounds set out in Articles 120 and 88 (as set out below). In all circumstances, the amount of the tip cannot exceed 2 years` salary. The employer is obliged to bear the costs of returning the employee to his or her country of origin, unless the employee takes up a new job in the United Arab Emirates or resigns and can pay for the repatriation himself. An employer may terminate an employment contract without notice and withdraw the employee`s remuneration at the end of the period of service if: The employer of a UAE national must inform the Ministry of Human Resources and Emiratisation if it intends to terminate the employment contract. . .