Q: Hello, A company with entities and employees in the UAE (specifically in Dubai Mainland and JAFZA) terminates employees due to company restructuring initiated for business convenience, and not due to insolvency, financial distress, or bankruptcy. I understand that, under UAE labour law, the following payments are typically due: - End-of-service gratuity (in accordance with UAE Labour Law and/or JAFZA regulations); - Payment for any accrued but unused leave; - Compensation for the notice period, if waived; and - Any outstanding contractual entitlements or dues. The main question is as follows: In the context of restructuring-based terminations, is there any legal obligation, or prevailing legal or customary practice, to pay a separate “redundancy payment” or severance beyond the items listed above? I would appreciate it if you could clarify this with reference to applicable UAE Labour Law, Executive Regulations, Ministerial Resolutions, and JAFZA-specific employment regulations, where relevant.

Q: Hi, I would like to inquire whether an employer has the right to revoke a benefit that was previously granted to an employee. For instance, if a company provided family status to some employees and gave family tickets in a given year, can they revoke it the following year?

Q: Dear Sir/Madam, Under what conditions can the employer terminate employment and deprive the employee of their end-of-service benefits?

The UAE has adopted a major reform in its legislative system that brought about 40 new laws and amendments to the company law, criminal law, personal status, among others. The amendments aim to develop the legislative structure in various sectors, the labor law being one of these, was the most recent. We try in this article to shed light on the changes introduced with the new labor law and their significance on both, the employer and employee.

The provisions of this Decree-Law, known as "New UAE Labor Law", govern labour relations in the private sector of the United Arab Emirates. The New Labor Law repeals the previous UAE Labor Law (Federal Law No. (8) of 1980).

The provisions of this Law, known as "UAE Labour Law", govern the relationship between employers and employees and other labour matters in the United Arab Emirates. There are special labour related regulations applicable in some of the free zones in the UAE.