REDUNDANCY AS REASON FOR TERMINATION In UAE

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By: Anas Aloulabi – Legal Consultant

anas.aloulabi@albaharadocates.ae

Lately, we had several cases where the employees approached the Dubai First Instance Labor Court complaining ending their employment relationship on an arbitrary basis and claiming thousands of Dirhams as compensations. The common reason for these cases was that the post become redundant. Most of the employers made it clear in the termination letter is that the redundancy was due to restructuring the institution. This clear good-faithed motivation by the employers was taken against them in he court of law. Where the Dubai and Sharjah courts jurisprudence has frankly stated that redundancy is not a reason that meets the requirements of article no. 117 of the UAE Federal Labor Law no. 8/1980 which provides that a termination of the labor contract by an employer must be due to a legitimate reason (valid grounds) as per the provision’s statement. Therefore the employers specially those who have reputed goodwill’s are advised to avoid mentioning the Redundancy due to  Restructuring as a reason for termination in their future termination letters to avoid paying thousands of Dirahms as compensations to the terminated labors, especially those who have high salaries, where the compensation might reach 3 months’ salary.

 

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