Q: The definitions and rules of interpretation applied to the contract signed by both parties (the company and me) were in line with Federal Labour Law No. 8. My company assumes that the compensation is only 1 month under Federal No. 33… A: The employment contract and its terms must be adhered to…

ابو ظبي, الإمارات العربية المتحدة

Which law governs my termination compensation—Federal No. 8 or No. 33?

Dear Sir,

I am working in the private sector in Abu Dhabi. I was recently released from my job due to cost-cutting and am currently in my notification period until January 24th. I have some questions regarding the termination compensation.

As per my employment contract with the company, the definitions and rules of interpretation applied to the contract signed by both parties (the company and me) were in line with Federal Labour Law No. 8, which states that the compensation for termination of the contract is 3 months.

However, my company assumes that the compensation is only 1 month under Federal No. 33.

Could you please advise which one should be followed, considering the law applied to my signed contract with the company?

Thank you!

متميز

عبد الواحد شريف

دار الحقوق للاستشارات القانونية

دردشة

توظيف

اجتماع

15 Jan 2025, 07:14

Dear Client,

Thanks for your question! I hope you are doing well. I will assist you in this matter.

Regarding termination compensation in Abu Dhabi, the applicable law depends on your employment contract and the timing of your termination.

If your contract references Federal Law No. 8, it may still apply since your termination occurred before the new Federal Decree No. 33 of 2021 took effect on February 2, 2022.

Under Law No. 8, you could claim compensation for arbitrary dismissal up to three months' salary.

If your contract specifies three months' compensation, that may be valid. It’s advisable to consult with us to clarify your rights based on your specific circumstances.

Thanks & Regards,

ABDUL WAHIED

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متميز

ناصر سلمان

جاسم علي الحداد للمحاماة والاستشارات القانونية

دردشة

توظيف

اجتماع

15 Jan 2025, 07:14

The employment contract and its terms must be adhered to unless another settlement is made and both parties agree to it, but you can file a complaint with MOHRE in this regard.

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متميز

خالد عبيد

كي إتش إي للاستشارات القانونية

دردشة

توظيف

اجتماع

15 Jan 2025, 07:45

Hello,

Even if your contract cites Federal Law No. 8 of 1980, it is likely that Federal Law No. 33 of 2021 would prevail, as it is the current law in force.

This is particularly true if there is no explicit provision in your contract stating that it should continue under the old law irrespective of legislative changes.

While your contract mentions Federal Law No. 8, the enactment of Federal Law No. 33 might supersede those terms, making the one-month compensation provision applicable.

For further assistance, kindly share your WhatsApp number.

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متميز

محمد بخيت

محمد بخيت للمحاماة والاستشارات القانونية

دردشة

توظيف

اجتماع

15 Jan 2025, 07:54

If the employment contract provides for 3 months’ severance pay, and this clause has not been amended or agreed to be changed, this clause may be legally binding, even after the new law comes into effect.

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متميز

محمد صلاح شعيب

الفهد للاستشارات القانونية

دردشة

توظيف

اجتماع

15 Jan 2025, 09:53

Thank you for reaching out with your query regarding your termination compensation!

Based on the information you’ve provided, I understand that your employment contract includes a clause regarding termination compensation, specifying 3 months as the compensation period, but your employer is now asserting that compensation is only 1 month, referencing Federal Law No. 33.

To address your question and provide clarity, and to summarize, Federal Law No. 8 should govern your termination compensation, as per your contract, and the company should pay 3 months' compensation.

The provisions under Federal Law No. 33 are not retroactive and do not override the terms of your contract signed under Federal Law No. 8.

I would recommend addressing this with your employer and, if necessary, pursuing legal avenues to enforce your contractual rights.

Please feel free to reach out if you require assistance in drafting formal letters to your employer or need further support with this matter.

Best regards,

Mohammed Salah

Legal Consultant

15 Jan 2025, 21:35

Dear Sir,

Thank you so much for all your responses. I am glad to see all the different opinions related to the above question and that's the reason why I'm seeking legal advice to understand my contractual rights. To provide more clarity, there was no specific clause in my employment contract specifying the 3 months compensation period. The idea of 3 months compensation when contract is terminated came from upon reading the Federal Law no. 8 article 115.

Here are some of the terms under the employment contract.

General conditions of the contract - a reference to a particular law is a reference to it as it is in force for the time being taking account of any amendment, extension or re-enactment and includes any subordinate legislation for the time being in force made under it.

Definitions and rules of interpretation in this clause apply in this agreement - labour law: The UAE Labor Law for Private Sector (being Federal law no 8 of 1980 as amended).

Entire Agreement: Each party acknowledge and agrees with the other party that this agreement together with any documents referred to in it constitutes the entire agreement and understanding between the employee and the company and supersedes any previous agreement between them relating to the employment (which shall be deemed to have been terminated by mutual consent). IN the event of conflict, between the terms of this agreement and the ministry of labour contract, the terms of this agreement will prevail.

I believe I can share a copy of my employment contract for further review, if that is possible?

16 Jan 2025, 07:33

Hi,

Regarding the three-month compensation period you mentioned, as there is no specific clause in your employment contract, it appears that the compensation is being considered based on the provisions of Federal Law No. 8 of 1980 (UAE Labour Law), specifically Article 115. This article generally provides guidance on compensation in cases of termination of employment without proper cause.

The clause in your contract referencing UAE Labour Law and its amendments strengthens the idea that the provisions of the law are to be followed in the absence of specific contract terms. It is also important to note that if the employment contract contains a clause stating that it supersedes any prior agreements, the terms outlined in the contract will typically prevail, as you mentioned.

If you believe that sharing the contract will provide additional context for a more detailed review, I am happy to assist you further. You can send it over to us, and we will conduct a thorough review to ensure you understand all your legal rights under the contract and the applicable law.

Please feel free to send a copy of the contract at your convenience. We will proceed accordingly with a more tailored response and advice.

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