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Arbitrary Dismissal of Employees in UAE

Having a ton of different business management within one area will always need extra care. This is because of the connection of employees with their employers. Hence, there are tons of different relationships that need to be maintained when it comes to businesses because they become the main hub. They help in developing the social and economic status of the country. Therefore, in order to generate the best kind of revenue for the country. Hence, this calls for legal documentation as well as contracts that help maintain the relationship healthy on a legal basis. Arbitrary Dismissal UAE is one of the most suspects when it comes to cases as such. This is when anyone is dismissed due to unlawful or illegal reasons.

Therefore, if there is any reason which is not lawful or authentic, it will call for a contract within the UAE. There are specific rules and regulations set where dismissal is permissible. However, if any reason falls beyond those points, then legal action can be taken. This provides the security of the workers as well because it is seen to be unfair to them. Moreover, Federal Law number 8 of 1980 is regarding all of the workforce as well as Labor relations. Hence, this is the law set that everyone looks upon. All of the rules apply to everyone working in UAE whether the employees are national or non-national. However, they do not apply to some and they are:

The common disputes that take place 

There are numerous types of disputes that creep in between employees and employers. These can be different things such as unlawful termination, not paying their salaries or not paying them on time, labor ban, or service gratuity. Hence, all of these disputes should have a solution and this is where the laws come in to perform their function. Therefore, Labor Law, as well as Arbitrary Dismissal laws, have the main importance when it comes to businesses as such. There are 2 different employment contract from the Provisions of the Labor Law that gives more security to both parties.

Therefore, it has mentioned the limits of both parties so that there can be fewer disputes and arguments over the basis of the business. Hence, there are other articles and laws as well which provide a good backup setting for this relationship. Article 113 of the Labor Law comes in handy as well. It lays down some important termination of the employment contract:

There are other laws as well such as article 114 of the Labor Law that gives more information about the relationship. If there is a death of the employer, then it should not result in the termination of the employment contract. This can only happen when the employee is disabled completely, it is only then the termination can happen of the employment contract. It also gives rise to those who are a bit disabled. They should place them in any other work that they can carry out easily and suits them the best.

The requirements of termination under the limited-term employment contract 

The main gap for the limited-term employment contract is that it can last for up to 2 years. Therefore, the main rule for this type of contract is that there cannot be any source of termination until the expiry is close. This is the general ruling when it comes to the limited-term employment contract. However, termination is possible by looking at the Labor Law article 120 through mutual continues. There are different things that both parties will have to agree upon. Some of those are:

The requirements of termination under the unlimited-term employment contract 

There are specific requirements when it comes to allowing termination under this contract. Hence, termination under this contract is only possible if:

Therefore, the termination can take place only through the circumstances above. Therefore, the reasons that the Labor Law gives are going to either tell you that you can terminate or not. Hence, one of the major ways that will not count as termination is if you do not give prior notice. This is also what Labor Law Article 120 says. Moreover, the employee can terminate the employment contract on the basis of the expiry date which is before the expiry. This is also there in article 121 of the Labor Law.

They also take other reasons into account as well. Some of them being if the employee has been faking their identity, telling secrets to anyone else, is the reason for a huge loss for a childish reason, involving in any assaults or any drug cases or failing to carry out their tasks on time. All of these things state in article 120 of the Labor Law. Therefore, termination is possible if the employer is breaching his obligations to someone else. This can also happen if there are any cases of harassment in any sense.

Arbitrary Termination 

There are tons of chances for people to go through different unfair levels of arbitrary termination. Therefore, to ensure that this is not the case, there are laws that help maintain social solidarity so that everything is going fine. Therefore, articles 122 and 123 provide the dealings of unfair arbitrary termination. Hence, article 122 of the Labor Law states that if the termination of the employee is based on his or her work then it is arbitrary termination. This can also include any serious complaint against the employer before the authorities got to know can also be an arbitrary termination of the employee.

Therefore, any reason which is unjustifiable or unreasonable will be an arbitrary termination. There are other reasons as well which the Labor Law states which can tell you what can cause the dismissal of employees. All of these have a major hold back of the reasons which UAE courts have decided to agree upon. Some of the reasons made by the UAE court for unlawful arbitrary termination are:

Forced termination 

This is where force was applicable on the employee to go through termination by the employer and this could be for different reasons. These can be if the employer did not execute the contract requirements properly or did not pay their wages on time and as per the contract. Hence, if the employer creates any situation as such then it leaves the employee to terminate the contract. The employer can do this by coercive actions or by violating contractual obligations. The coercive actions include:

Unjustifiable reasons 

These reasons can include numerous circumstances such as if the employee goes through termination on the basis of false accusations, discriminatory reasons, or unreasonable reasons such as cultural effects.

Causing loss to the company 

If the employer has sent a report to the Ministry of Labor or the Ministry of Human Resources and Emiratisation with the evidence and proof that it is causing loss, then there won’t be a big deal. However, if there is no proof or evidence then it will not be taken into account.

Redundancy termination 

Redundancy can happen on a different basis and this is when the business changes its requirements, changes its location, reduces the operation of that specific skill, or lowers the expenses. The redundancy termination is not yet in the Labor Law. However, when we look at the Ministerial Resolution 279 of 2020, it states some laws for the private sector. Overall, this has still not yet made it into the official laws which is why the official law of redundancy still remains. The law includes that if an employee has been made redundant, then the employer should give the redundancy fee to the employee or any other thing such as housing, medical insurance, or transport.

Economic challenges 

If there are any economic challenges within the country that force the employee to terminate then it will not be arbitrary.

The disciplinary code 

There are different kinds of articles such as 102 and 112 of the Labor Law which allow the employer to take different actions. These also account for different penalties when there is an action that goes against anything. Hence, these disciplinary codes can be done through:

All of this can only happen when there is a notice given first. Hence, the rest of the things can follow up. These also should match with the action.

Compensation of cases where termination was arbitral 

The employer has to pay compensation to the employee for the termination or removal for arbitrary reasons. Article 123 of the Labor Law also states this. Hence, it is important to do so because the court will go through an evaluation when it comes to knowing the reasons. The compensation will depend on:

However, there are other rules and regulations as well. The compensation should not be more than what the employee was getting for their wages. This will continue for a period of 3 months. It is also the right of the employee to gratuity along with the compensation payable. Therefore, the employee can prove his right to termination as long as it is valid and comes under the reasons of the Labor Law. Hence, all of these things and much more are seen before placing any kind of action for valid and legal pathways.

How you can get extra help

Therefore, these are the requirements of termination when it comes to an unlimited-term employment contract. There are different laws and situations which allows parties to go through termination but, with legal permission. Therefore, anyone who is going to be looking forward to termination should be looking at all the legal ways to do so and the laws. Not just that but, sometimes it can be difficult to pass on the termination process. Hence, this is why you will need to have a guide. DDR Lawyers are always here to provide you with the right path of termination. We do this under all circumstances because we are experts and hold knowledge about all the regulations.

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