Questions & Answers
Does reducing salary forcefully count as arbitrary dismissal?
I'm employed in the private sector with a limited-term contract valid from 22.04.2019 to 21.04.2021.
Once I signed that contract, the company manager told me to sign one more employment contract valid from 01.05.2019 to 31.12.2019 saying this contract is for headquarters located outside the UAE.
That contract was on company letterhead paper only, not thru MOHRE. I signed it and later found out it is not legally binding in the UAE.
Now, they are offering me the same type of contract again, valid form 01.01.2020 to 31.12.2020 with a reduced salary. However, I do not want to accept this salary.
If I do not sign this contract, they will terminate me. If they terminate me, will they pay 3 months’ salary compensation to me or not?
Will the contract I signed from May 01.05.2019 have any impact on this compensation?
Please advise.
Thanks a lot.
Dear questioner,
If the reasons for termination are not related to performance, then you can claim salary up to 3 months in lieu of arbitrary dismissal.
Kindly contact us by phone for a detailed discussion or write to us at our email for further assistance.
Dear Sir,
Greetings,
Please advise about the second contract, do you have a copy signed from the company as well?
Also for the termination of the limited contract, you can claim notice period for 3 months and termination compensation for 3 months as per Ministerial Decree issued by the Ministry of Labor Department 765 of 2015.
Kindly advise about your contract and advise which court is the court of jurisdiction.
Kindly contact me for more details.
Legal Consultant Mohamed Noureldin.
