I work for a group of companies on a local unlimited contract. I have just been verbally told they are going to cancel my contract and my last working day will be August 20. The company's reason is that they cannot afford to keep me on any more. I have not received any written warning about this. They are going to pay me until the end of August and that's it. I will then only be entitled to my gratuity. Have I got any more rights? Are they allowed to terminate my contract like this? I read online that I should be compensated with three months' salary if the labour contract is terminated for any other reason than stated in article 120 of the labour law. SM, Dubai
If someone is on an unlimited contract they can be made redundant by being given written notice in accordance with the terms of their contract, usually a period of 30 days. Verbal notice may be accepted, but it should be put in writing at least 30 days prior to leaving service. Article 120 of UAE Labour Law is in respect of redundancy without notice and does not apply in this case. An employer can make an employee redundant without issue if they are unable to afford to continue employing them, and no compensation is payable. There is only an issue if someone else is employed in that person’s place, as that could then be construed as arbitrary dismissal. If it transpires that the redundancy is not for financial reasons or due to the individual’s work, then the employee can raise a case, and if they win compensation could be payable. An employee who is made redundant will not receive any ban and is due any end of service gratuity or holiday payment that has accrued in full.
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. Readers are encouraged to seek appropriate independent legal advice.
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Tips to keep your car cool
- Place a sun reflector in your windshield when not driving
- Park in shaded or covered areas
- Add tint to windows
- Wrap your car to change the exterior colour
- Pick light interiors - choose colours such as beige and cream for seats and dashboard furniture
- Avoid leather interiors as these absorb more heat
Off-roading in the UAE: How to checklist
French business
France has organised a delegation of leading businesses to travel to Syria. The group was led by French shipping giant CMA CGM, which struck a 30-year contract in May with the Syrian government to develop and run Latakia port. Also present were water and waste management company Suez, defence multinational Thales, and Ellipse Group, which is currently looking into rehabilitating Syrian hospitals.
Closing the loophole on sugary drinks
As The National reported last year, non-fizzy sugared drinks were not covered when the original tax was introduced in 2017. Sports drinks sold in supermarkets were found to contain, on average, 20 grams of sugar per 500ml bottle.
The non-fizzy drink AriZona Iced Tea contains 65 grams of sugar – about 16 teaspoons – per 680ml can. The average can costs about Dh6, which would rise to Dh9.
Drinks such as Starbucks Bottled Mocha Frappuccino contain 31g of sugar in 270ml, while Nescafe Mocha in a can contains 15.6g of sugar in a 240ml can.
Flavoured water, long-life fruit juice concentrates, pre-packaged sweetened coffee drinks fall under the ‘sweetened drink’ category
Not taxed:
Freshly squeezed fruit juices, ground coffee beans, tea leaves and pre-prepared flavoured milkshakes do not come under the ‘sweetened drink’ band.
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
THE BIO
Ms Davison came to Dubai from Kerala after her marriage in 1996 when she was 21-years-old
Since 2001, Ms Davison has worked at many affordable schools such as Our Own English High School in Sharjah, and The Apple International School and Amled School in Dubai
Favourite Book: The Alchemist
Favourite quote: Failing to prepare is preparing to fail
Favourite place to Travel to: Vienna
Favourite cuisine: Italian food
Favourite Movie : Scent of a Woman
