Questions & Answers
Termination of employment contract for a valid reason
Hi Sir/Ma'am,
I just want to ask for an advice regarding my status.
I'm currently working for over a year already under an outsourcing company with an unlimited contract and they placed me in a hospital. Unfortunately, the hospital cancelled its contract with our company.
Now, my company sent me an email with an attachment saying that they will be proceeding with cancelling my employment contract as per Article 113 of the UAE Labor Law.
The notice period started last Aug. 22, 2018, and my last working day would be until Sept. 21, 2018.
Now, my concern is what are the benefits that I'm entitled to?
Will I have a problem with the MOL if ever I'll be employed in the future?
And is this basically a termination letter?
Thank you and I hope that you could give me some advice regarding this matter.
I need to see your labour contract, to know about the specified notice period. Normally, it varies from 30-90 days.
Further, an unlimited contract can be terminated for a 'valid reason'. Articles 113 and 117 of the UAE labour law insists for a valid reason.
A Valid Reason can be attributed to Art.120 [where an employer can terminate the contract without even serving a notice] or for any 'work-related reason'.
In fact, this shall be proved before the Court and the Court holds all the discretion in this regard.
You are entitled to receive your end of service benefits such as leave salary (if any) and gratuity calculated at the rate of 1/3 of total gratuity, i.e. 7 days salary for a year.
Please note you can still litigate the matter for arbitrary dismissal to avail the compensation for the same.
Finally, you will not face any issues with the MoL in future. Hope this message gave you a satisfactory clarification.
Thank you.
