I work for a big semi-government organisation in Dubai on an unlimited contract. They are terminating my service due to an "optimisation of resources" drive, essentially downsizing. I have been in this company in a project manager position since December 2012 and had decent appraisals. In May 2015, I transferred department and then in September 2015 I was seconded to an entirely different project which had good results and I was praised for that before returning to my normal role. Now they have decided I will be terminated due to low performance in my department, even though I wasn't there for a year. Can I claim unjust termination and claim compensation pay of up to three months? BT, Dubai
Under UAE Labour Law, poor performance or financial issues in the company are acceptable reasons for someone to be made redundant, as is a specific job role no longer required. If someone has received a good performance review and is then made redundant, then there could be grounds for complaint but if there is a record of a poor review on file, that was not challenged at the time it was issued, it is unlikely that a formal complaint would stand up in court. In accordance with Article 122, “termination by the employer of an employee’s service is considered arbitrary if the cause for such termination has nothing to do with the work”. The onus would be on BT to prove that this is not the case if he wished to take action in accordance with Article 123, which permits the court to make a judgment against the employer and can award compensation of up to three months’ basic pay. As BT is on an unlimited contract there is no compensation to be paid as required for breaking a limited contract, but 30 days’ written notice must be provided, or more if the contract of employment states a longer notice period. An end of service gratuity is paid in full in the event of redundancy, along with any days of annual leave accrued but not taken.
Keren Bobker is an independent financial adviser with Holborn Assets in Dubai, with over 20 years’ experience. Contact her at keren@holbornassets.com. Follow her on Twitter at @FinancialUAE.
The advice provided in our columns does not constitute legal advice and is provided for information only.
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