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Termination of employment under the UAE labour law

Hi Sir,

Please, can you help me understand the following below?

I have been terminated from my company in Dubai. They had made me sign one letter on their Official Letterhead that they have terminated me and will be giving a grace period of one month. This was almost 1.5 months ago. After this now they have made me sign the Cancellation Letter for closing the Contract.

They are telling me they will be paying my basic salary and not be paying HR, is that ok by Law?

Also, they will be deducting the cost of the car and mobile SIM since the letter which they provided to me.

Please, can you help me understand the Law of termination in Dubai, so that if in any part they wrong I could take legal action if required?

كوشار أند كو إنك. مستشارون قانونيون (فرع دبى)
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8 Jul 2017, 15:24

FIXED TERM: If the contract has a FIXED TERM ie the starting date and the end date is mentioned, then if either party decided to terminate the contract without completing the contract period, then that party must pay the compensation subject to a maximum of three months salary.

UNLIMITED TERM OR NO TERM MENTIONED: The minimum notice period is 30 days (Article 117) unless terminated under Article 88 and 120.

You have to check your contract as to the notice period mentioned and let us know the reason for termination.

DUES: All employees must be paid their full salary and benefits for the duration of the contractual notice period until their termination date.

TERMINATION FOR A CAUSE: However, employees who are dismissed “for cause” (under Articles 88 or 120 of the Labour Law) will be terminated immediately and will not be entitled to receive the end of service gratuity, notice of termination or any payment for the notice.

ARBITRARY TERMINATION FOR UNLIMITED TERM: An employee who is dismissed arbitrarily (without cause or documentary evidence supporting poor performance) can claim an award of compensation up to three months salary, any contractual entitlements, payment in lieu of any unpaid part of the notice period; payment in lieu of accrued annual leave not taken and end of service gratuity.

I trust this will clarify your concerns.

With best regards,

Mrs. Khan

8 Jul 2017, 19:47

I had an unlimited contract with the company and they are terminating me saying there is no work for me.

I had signed my company official letter on 26th May and my notice period ended 22nd June 2017.

Now they have called me on 29th June to sign the labour contract cancellation document and now are saying as your contract got over by 22 June you will have to pay for all company assets you was using like car and sim and salary also will be provided to me as per their letterhead date.

Please, let me know if this is allowed. As per above, I understand that as per article 117 they need to pay me all salary and benefits until the labour contract is cancelled and not as per the company letter signed by me.

8 Jul 2017, 20:56

I don't understand how 30 days is calculated from 26 May to 22 June 2017. The 30 days period runs from the date of the notice and not cancellation of the labour contract. If you were terminated on 26 May then your last working day is 25 June simple and you will be entitled to dues until 25th June.

When the labour contract is cancelled you normally sign a statement that you have received all dues. If the employee is not happy with the same they do not sign it and file a complaint with the Ministry of Labour. Do you recall signing it?

With best regards,

Mrs. Khan

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