Employee's rights upon termination for redundancy under the new labor law

Dear questioner,

Your first day starts with the date on your job contract. Let them give you the notice in writing. Meanwhile continue working.

Please note that the New Labour law, Federal Decree-Law No. 33/2021, lets the employer terminate the contract for "any economic or extraordinary circumstances that prevent the continuation of the project" (Article 42(8)).

Therefore, if due to loss of business your position is terminated, the possibility of recovering compensation is remote.

Further, compensation is available only under Article 47 for Illegal Termination of the Worker’s Service.

The termination of the employee's employment by the employer shall be unlawful if such termination is due to his submitting a serious complaint with the Ministry or bringing a lawsuit against the employer that has been found to be lawful.

The valid cause is deemed to be any other cause other than what is specified under Articles 42 and 46.

The employer shall pay fair compensation to the employee estimated by the competent court if it proved that the dismissal is unlawful (for reasons other than Article 42 (which specifies nine grounds for termination including economic reasons) and Article 46 -Termination of Service for Lack of Health Fitness).

The amount of compensation shall be determined by considering the type of work, the amount of damage sustained by the worker, and the length of his service.

The amount of compensation shall not exceed the remuneration of the employee for a period of (3) three months, calculated according to the last salary he was receiving. Therefore, if you have not worked too long, the chance of receiving compensation is remote.