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Termination due to redundancy in UAE – Dubai

termination due to redundancy in UAE

This article aims to provide accurate and valuable legal information to employees fired due to redundancy in the UAE, empowering them to understand and assert their rights.

At the forefront of supporting employees and employers in navigating termination due to redundancy in UAE is Al Mulla Office.

With his expertise in labour laws and vast experience in handling employment cases, Al Mulla offers a comprehensive solution for those seeking assistance.

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

Termination due to redundancy in UAE.

Redundancy termination can be challenging for employees, causing uncertainty about their legal rights. For this reason, businesses must comprehend labour regulations to ensure compliance when terminating employees.

The legal responsibilities of employers include providing written notification and adhering to the notice period required by UAE labour regulations and employment contracts.

The duration of the employee’s service usually determines the notice period. Employers must also furnish a redundancy letter to the affected employee, clearly stating the reasons for termination and providing essential discharge details.

Employee’s Rights when Laid off for Redundancy.

Employees who face termination due to redundancy in UAE are entitled to various rights and benefits stipulated by UAE labour laws. These include:

  • Employees are eligible to earn end-of-service rewards, sometimes known as gratuities, upon termination. The gratuity amount is determined based on the employee’s service history and termination pay.
  • Notice Period. Workers have the right to a notice period to prepare for the future. The length of the notice period is typically specified within the employment contract and is contingent upon the duration of the employee’s tenure within the organization.

Redundancy termination UAE law.

what is redundancy UAE labour law 2022?

Due to the lack of a clearly defined statutory term for termination of employment due to redundancy, there is sometimes a great deal of confusion and misunderstanding on the proper legal course of action.

Typically, a termination of employment redundancy letter refers to firing an employee whose particular position is no longer required.

Dismissals due to redundancy are not the employee’s responsibility because they are not the result of incompetence or wrongdoing.

Instead, they happen due to altered business needs, a changed work environment, or a company’s complete shutdown.

Although redundancy is not a statutory notion, courts have acknowledged that it can be a legally reasonable and valid basis for dismissal under Article 117 of the UAE Labour Law when a company fires an employee to save costs.

Depending on the particular conditions and the workforce size that the process will affect, the precise components of the redundancy process will change.

A combined meeting with all workers impacted by the redundancy and individual sessions with each person impacted should typically be part of a fair and thorough procedure.

The firm and the affected workers should be able to explore alternatives to redundancy through this process, such as changes to employee benefits, evaluation of different jobs within other business sectors, or the possibility of working fewer hours or part-time.

By sending official letters and frequent updates to the workforce, the corporation should ensure that everyone is fully informed at every stage of the procedure.

The employees should also be given the relevant documentation of the employment termination due to redundancy and the overall economic condition.

FAQs about termination due to redundancy in UAE.

Redundancy in employment refers to the termination of an employee's position when it is no longer required due to changed business needs, a different work environment, or the complete shutdown of a company.
Employers must provide written notification, adhere to the notice period specified in labor regulations and employment contracts, and furnish a redundancy letter with clear reasons for termination.
Employees are entitled to end-of-service rewards (gratuities) based on their service history, a notice period as specified in their employment contract, and a redundancy termination letter explaining the reasons for termination.
Yes, redundancy is recognized as a valid basis for dismissal under Article 117 of the UAE Labour Law, especially when it is aimed at cost-saving measures and not due to incompetence or wrongdoing on the part of the employee.

In Summary.

Understanding termination of employment due to redundancy in the UAE is crucial for employees and employers.

Employees should be aware of their entitlements, such as notice periods and end-of-service benefits, while employers must adhere to legal requirements when implementing redundancies.

Seeking guidance from experts like Al Mulla’s office can provide invaluable support and ensure a fair resolution.

Reach out to us and get the labour law consultation you need!

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

Learn about the New UAE labor law on termination of the contract,  Wrongful contract termination and the Best 5 wrongful termination lawyers in UAE Dubai.

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