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Termination of employment due to business downturn in UAE Dubai

termination of employment due to business downturn in UAE

Navigating Termination of employment due to business downturn in UAE involves a set of legal intricacies, given the absence of specific provisions for mass terminations in the UAE labor law.

Individual termination processes, however, are governed by guidelines that employees and employers must adhere to.

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

Termination of employment due to business downturn in UAE.

Termination of employment due to business downturn in UAE

Employment termination must occur individually, as UAE labour law does not contain specific mass terminations or collective dismissal provisions.

Arbitrary Dismissal.

Employees who believe they have been unfairly dismissed can file a complaint with the Ministry of Human Resources and Emiratisation.

The case will be referred to the respective court if the ministry cannot resolve the issue.

If the court proves arbitrary dismissal, the employer will compensate the employee.

The compensation’s value is assessed based on the work type, the extent of damage caused to the employee, and the employment duration.

In all cases, the compensation must not exceed the employee’s wage for three months, calculated based on their last wage.

In addition to compensation, the employee can claim their gratuity, notice period dues, or any other unpaid dues from their employer.

Expert Advice on Employment Termination.

Termination of employment due to business downturn in UAE is a complex process, and it is advisable to seek legal advice before proceeding.

Al Mulla, a highly experienced labour lawyer and legal consultant, has helped many clients navigate the complex laws surrounding employment termination in the UAE.

He can provide invaluable guidance during such critical times.

FAQs about termination of employment due to business downturn UAE.

An employer can terminate an employee's services without notice in specific circumstances, such as the employee's commission of a significant error causing substantial material loss or intentional damage to the employer's properties, as listed under Article 44 of the UAE Labour Law.
They can file a complaint with the MoHRE, which may refer the case to the respective court. If the court proves arbitrary dismissal, the employer must compensate the employee, and the employee can also claim their gratuity, notice period dues, or any other unpaid dues from their employer.

Conclusion.

The absence of mass termination provisions places a premium on individual termination processes.

Arbitration through the MOHRE and legal recourse through the courts are crucial avenues for resolving disputes.

As emphasized, seeking expert advice, such as that provided by Al Mulla, can prove invaluable in ensuring a fair and just resolution during these challenging times.

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.

We recommend you read about the termination due to redundancy in UAE Dubai and learn about the Labour Law for Termination of Employment in UAE. Also, read about Employee rights on termination in UAE Dubai.

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