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REDUNDANCY

Redundancy

whenever there is a challenging economy, the company may need to reduce their workforce by eliminating their employees claiming them as redundant. If you are dismissed from your title due to redundancy, you have certain rights and claims including direct consultation with your employer, option to move to a different position and redundancy compensation.

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Summary of the law

Article 117 of the UAE labour law states that if a business dismisses an employee for a cost saving reason, this can amount for a legally fair and valid reason for dismissal.

The labour law states that a company may terminate an unlimited term employment contract for a valid reason by providing at least 30 calendar days (or longer according to the contract) notice of termination to the employee, any time.

A fair redundancy process should involve a meeting with all employees and one to one direct meetings with each employee  effected. The process should provide both parties with the opportunities to consider alternatives to redundancy, like change in employee benefits, reduction in working hours or pattern, alternative job title in another department  etc.

The terminated employee is liable for standard statutory termination payments including;

  • Notice pay: minimum f 30 days
  • End of service gratuity:
  • Payment for untaken and accrued annual leave
  • Repatriation flight: for returning to home country
  • Any other contractual payment mentioned.

According to article 125 of Labour law, an employee should be given an end of service certificate detailing the work specifications during the period of employment.

If you feel like your redundancy dismissal does not fall under this category, or your employer has failed to follow a fair process, then you may have a claim. Contact the highly experienced lawyers through i advice to know more about redundancy. Let us help you claim your rights.