Questions & Answers
Rights of the employee in case of termination by new management
In Jan 2019, a part-owner joined our company.
My gratuity was paid and I received a new appointment letter, mentioning that I'm continuing with the new management with a lower salary and a 6 months probationary period.
But, my labour contract with JAFZA was not cancelled. On my 6th month (182nd day), I received the non-confirmation letter through email. They said that they will give an extension of 1 one month, but I have to request.
I did request through email then they replied that the same was treated as my resignation. On my LWD (7th months), my manager told me to continue, so I thought I was going to be retained.
But after a week, she sent me an email stating that the company just gave me 1 more month and that they have to discontinue my services due to the change in our department. Hence, I worked for another 1 month.
Can I claim arbitrary dismissal in this case? Also, since the previous owner paid the gratuity and leave salary only up to Jan 2019, can I also claim for same from Jan 2019 up to my LWD?
Hello.
According to Article 126 of the UAE Labour Law, "If any change takes place in the form of the establishment or in its legal status, valid contracts at the time of change shall continue to exist so between the new employer and the employees of the establishment, and service shall be deemed to be continuous. Both the former and the new employers shall jointly be liable for a period of six months for the fulfilment of obligations arising from contracts of employment in the period before such change and after the lapse of the said period the new employer shall be solely responsible."
You may file a complaint if your employer dismisses you due to the changes in the establishment structure.
