Termination stating redundancy amounts to arbitrary termination

Dear Sir/ Madam,

Thank you for reaching out to me on this.

Please note that if the company terminates an employee on the grounds of redundancy but in reality is only terminating to save cost and the actual reason for termination is not connected to work, this amounts to arbitrary termination.

As per Federal Law No. 8 of 1980, Article 122 states as follows:

"A worker's service shall be deemed to be arbitrarily terminated by his employer if the reason for termination is irrelevant to the work. More particularly, termination shall be regarded as arbitrary if it is prompted by a formal complaint filed by the worker with the competent authorities or a legal action instituted against the employer that proved to be valid."

With the aid of the above article, it can be safely assumed that the situation stated by you sits within the definition of arbitrary termination as the reason for termination was not connected with work. The Law provides for compensation as per Article 123 as follows:

"1. Where a worker is arbitrarily dismissed, the competent court may order the employer to pay him compensation, to be assessed by the court with due regard to the nature of the work, the extent of damage sustained by the worker and his period of service, and after investigating the work circumstances, provided that such compensation shall in no case exceed the worker's wage for three months, calculated on the basis of his last wage.

2. The provisions of the preceding paragraph shall not prejudice the worker's right to the gratuity he is entitled to and the compensation in lieu of notice provided for in this law."

As per above Article, you may file a labour case against the company claiming for arbitrary termination compensation. The said compensation can be for up to three months of gross salary at 9-12% of legal interest.

You may reach out to me on the phone or email for further clarification and assistance.

Regards,

Hari Wadhwana

This is called arbitrary dismissal and is subject to Article 123 of UAE labour law.

You are entitled to compensation amounting to 3 months salary as compensation.