Questions & Answers
Arbitrary dismissal and entitlements after being made redundant
Hi,
I will be grateful to you if you could advise me on the following:
I have been working for an international company for about 12 years. Due to a recent restructure, I was made redundant.
My questions are:
1. Will this redundancy be considered an arbitrary dismissal? If so, will I be compensated based on my full salary, or the basic?
2. I have not taken my annual leaves for many years. Can I be compensated for the days I did not take in the past 12 years?
Your kind response will be highly appreciated.
Dear Sir/ Madam,
Thank you for getting in touch with me on this.
You are right, termination based on restructuring and redundancy is deemed to be arbitrary dismissal under the UAE Labour Law.
You can claim salary up to three months as compensation, and the same is based on the full salary.
Your accrued annual leaves shall be payable to you, however, if the company proves by any means that you have taken leaves then you may lose this right.
In summary, you are entitled to your notice period salary, 3 months salary towards compensation, annual leaves, gratuity and air ticket.
If the case is filed in the court, then you are entitled to all of the sums at 9-12% legal interest.
You can get in touch with me on the phone for further assistance and clarification.
I trust you will find this helpful.
Regards,
Hari Wadhwana
Dear Sir,
Redundancy shall be considered arbitrary dismissal therefore, you are entitled to three months' salary as compensation.
For full information, please email us your contract in order to give you the full answer.
Advocate Bashar Abdalla.
