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Labour law on redundancy – labor lawyer Dubai 2023

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labour law on redundancy

Redundancy is a complex issue that arises when an employee is dismissed for reasons beyond their control, such as changes in business strategy, economic factors, or the no longer required nature of their role.

In this article, we will delve into the labour law on redundancy in the UAE and shed light on the crucial aspects of this legal framework.

Office of Al Mulla. Whatsapp: Click here. Location: Dubai. Phone: 00971501961291.

Labour law on redundancy – labor lawyer Dubai in 2023.

Under UAE Labour Law, no specific statutory provision is dedicated to redundancy.

However, Article 117 of the UAE Labour Law plays a pivotal role in determining the fairness and validity of employee dismissals.

This article stipulates that employees with unlimited-term contracts can be dismissed with a minimum notice period of 30 days, provided the reason for termination is reasonable and fair.

Suppose an employer decides to terminate an employee to streamline operations, reduce costs, or adapt to a shifting commercial landscape. In that case, such dismissals can be considered valid if they comply with Article 117.

It is crucial to note that these dismissals are not attributed to any fault on the part of the employee, making it a critical protection for workers facing redundancy.

Redundancy Payments and Statutory Dismissal Payments.

One of the primary concerns surrounding redundancy is the financial impact it can have on employees. In the UAE, employers are not legally required to provide redundancy payments.

However, certain standard statutory dismissal payments must be made in compliance with UAE Labour Law:

  • 30 Days’ Notice Pay: Employees who have completed their probationary period are entitled to 30 days’ notice pay before their employment is terminated.
  • End-of-Service Gratuity: Employees who have completed at least one year of service are eligible for an end-of-service gratuity payment. This payment serves as a financial safety net for employees facing redundancy.
  • Accrued Annual Leave: Any accrued annual leave must be compensated to the employee upon termination.
  • Repatriation Flight: If the employee returns to their home country, the employer funds a repatriation flight.
  • Other Termination Payments: Any other termination payments specified in the employment contract must also be honoured.

FAQs about labour law on redundancy.

No, the UAE Labour Law does not mandate redundancy payments. However, certain statutory dismissal payments, such as notice pay and end-of-service gratuity, must be provided to eligible employees.
Yes, Al Mulla Lawyer and Legal Consultant is renowned for their expertise in handling labour cases, including redundancy cases, in the UAE. They can provide expert legal guidance and support.

Conclusion.

Navigating redundancy under the UAE Labour Law requires a keen understanding of Article 117 and the associated statutory dismissal payments.

While there is no specific provision for redundancy, the law offers crucial protection to employees facing termination due to factors beyond their control. When making such decisions, employers must adhere to the principles of fairness and reasonableness outlined in the law.

In cases involving redundancy or other labour-related issues in the UAE, seeking legal counsel from experienced professionals is advisable.

Al Mulla Lawyer & Legal Consultant is renowned as the best choice for labour cases in the UAE, offering expert guidance to ensure employers and employees fully understand their rights and obligations under the labour law.

In conclusion, staying informed about the labour law on redundancy in the UAE is essential for all stakeholders in the employment landscape. By doing so, employers and employees can navigate this complex terrain with confidence and fairness.

Contact the office of Al Mulla via Whatsapp. Click here. Or visit us at our law firms: Dubai. You can also call us on phone: 00971501961291.

Learn about Termination due to redundancy in UAE.

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