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  • Writer's pictureAkram Cheik - Lawyer

GUIDE TO LABOR LAW IN DUBAI (part 2)

SECOND PART: The end of the employment contract




This second part looks at the end of the employment contract in the United Arab Emirates. Indeed, the end of the contract can cause several problems with regard to the decisions of employers and employees. In particular, if the employee is free not to continue before the end of the trial period, a unilateral termination of his contract may lead to sanctions for the employee in Dubai. Nevertheless, the principle of sanction remains balanced, the employer may also be subject to such a sanction in the event of unfair dismissal.


Thus, it is extremely important to follow the notice procedures, prior request for visa cancellation and to pay attention to compliance with the terms of the employment contract. To illustrate, contrary to labor law in France, abandoning a position generates a sanction equivalent to banishment from the labor market in the United Arab Emirates. It is therefore important to take certain precautions during the end-of-contract procedures.


This little guide aims to highlight some important articles summarized and commented, intended for both employers and French-speaking employees settling in Dubai. Thus, you can contact us for all requests for registration with the Ministry of Labor.



Contents


CHAPTER 1 THE CIVIL LIABILITY OF THE EMPLOYEE FOR FAULT


CHAPTER 2 TERMINATION OF THE EMPLOYMENT CONTRACT


CHAPTER 3 NOTICE PERIOD


CHAPTER 4 DISMISSAL


CHAPTER 5 PROFESSIONAL SECRECY


CHAPTER 6 ABANDONING POSITION


CHAPTER 7 THE END OF SERVICE







Chapter 1 THE CIVIL LIABILITY OF THE EMPLOYEE FOR FAULT


If the worker causes the loss, damage or destruction of tools, machines, products or materials belonging to the employer or under the control of the employer, due to a defect or failure by the worker to follow the employer's instructions, the latter may deduct from the worker's wages the sum necessary for his repair or restoration, provided that the sums withheld for this purpose do not exceed the wages of five days per month. The employer can apply to the competent court through the competent labor department for permission to deduct a longer sum if the worker has money or another source of income.






Chapter 2 TERMINATION OF THE EMPLOYMENT CONTRACT




The employment contract is terminated in the following cases:


A- If the parties consent to the termination thereof, provided that the consent of the worker is given in writing.


B- In the event of expiry of the specified duration of the contract, unless the contract is extended explicitly or by implication in accordance with the provisions hereof.


C- If a party to an indefinite term employment contract wishes to terminate it, provided that such party complies with the provisions herein relating to notice and acceptable grounds for termination of the contract in a non-arbitrary manner.

The employment contract cannot be terminated with the death of the employer, unless the object of the contract is related to his person.


However, the employment contract ends in the event of death or complete disability of the worker and this by virtue of a medical certificate approved by the competent health authorities of the State.

If the partially disabled worker is able to perform other work compatible with his state of health, and if such work exists, the employer must transfer the worker on request to such work and pay him the wages normally paid to them. workers with the same title, and such without prejudice to the rights and indemnities due to the worker hereunder.


If the employment contract has a fixed term and the employer terminates it for reasons not set out in article 120, he will be obliged to compensate the worker for the damages suffered, provided that the amount of the compensation n in any case exceed the total salary due for the three-month period or for the remaining period of the contract, whichever is shorter, unless otherwise stipulated in the contract.



If the contract is terminated by the worker for reasons not provided for in section 121[1], the worker is liable to compensate the employer for the loss he has suffered as a result of the termination of the contract, provided that the amount of the allowance does not exceed half of the monthly salary for the three-month period, or for the remaining period of the contract, whichever is shorter, unless otherwise stipulated in the contract.




1 - The employer and the worker may terminate the open-ended employment contract for valid reasons at any time after the conclusion of the contract, and such after having informed the other party in writing at least thirty days before the termination. of this one.

2 - With regard to daily workers, the notice period is as follows:


A - A week must have worked for a period of at least six months and at most one year.

B - Two weeks if the worker has worked for a period of at least one year.

C - One month if the worker has worked for at least five years




Chapter 3 The notice period



The contract remains valid for the notice period referred to in the previous article and is terminated when it expires. The worker is entitled to his full salary for this period based on the last salary paid. He must perform his work during this period if the employer requires it.

It is not permitted to agree on the exemption of the provision of notice or the reduction of the period thereof. However, agreement on the extension of this period is admissible.



If either the employer or worker fails to notify the other party of the termination of the contract, or if that party reduces the notice period, the notifying party must pay the other party compensation called compensation in lieu of notice. , even if such breach of notice or such reduction of the period does not cause any damage to the other party. This indemnity is equal to the worker's salary for the entire period of notice or the reduced part thereof. The indemnity in lieu of notice is calculated on the basis of the last salary paid to the worker for workers paid on a monthly, weekly, daily or hourly basis, and on the basis of the average daily salary provided for in Article 57 hereof with regard to payment by piece.


Chapter 4 DISMISSAL




The dismissal of the worker by the employer is deemed to be arbitrary if the cause of the dismissal is not work-related, in particular if the dismissal of the worker is carried out because of the filing by the latter of a serious complaint before the competent authorities or valid claim against the employer.



A- In the event of arbitrary dismissal of the worker, the competent court may order the employer to pay compensation to the worker. The court assesses this compensation taking into account the type of work and the extent of the damage suffered by the worker as well as the duration of employment and after investigation of the working conditions. In all cases, the amount of the compensation cannot exceed the worker's salary for a period of three months calculated on the basis of the last salary due.


B- The provisions of the preceding paragraph shall not affect the right of the worker to the gratuity entitled thereto and to the indemnity in lieu of notice provided for herein.


The employer cannot terminate the employment of the worker for his medical incapacity before the exhaustion by the latter of the holidays which are legally due to him. Any agreement to the contrary will be deemed void even if it is concluded before the entry into force of these presents.


The employer gives the worker, at his request and at the end of his contract, a free end-of-service certificate in which the start and end date of employment, the total duration of employment, the type of work made, the last salary paid and supplements, if any, will be mentioned.

The employer must return all certificates, documents or tools belonging to the worker



Chapter 5 PROFESSIONAL SECRECY


If the work entrusted to the worker allows him to meet the clients of the employer or to know their business secrets, the employer may require the worker not to enter into competition with him or not to participate in any competing project. at the end of the contract For the validity of such an agreement, the worker must be at least twenty-one years of age at the conclusion of the latter, and the agreement must be limited, as regards time, place and type of work, to the extent necessary to protect the legal interests of the employer.



Chapter 6 ABANDONING POSITION



If the foreign worker leaves work without a valid reason before the end of the fixed-term contract, he cannot obtain another job even with the permission of the employer for one year from the date of leaving work. No employer may knowingly recruit or retain the worker during this period.





Chapter 7 THE END OF SERVICE



A worker who has spent a year or more in continuous service is entitled to an end-of-service bonus at the end of his service. Days absent from work without pay are not included in the calculation of the period of service and the gratuity is calculated as follows:

1 - Twenty-one days' pay for each of the first five years of service.

2 - The salary of thirty days for each additional year.

Always on condition that the total gratification does not exceed the salary of two years.



The worker is entitled to a bonus for the fraction of a year served, provided that he completes a year of uninterrupted service.


Without prejudice to the provisions of certain laws on pensions and retirement benefits granted to workers in certain establishments, the end-of-service bonus is calculated on the basis of the last salary due to workers paid on a monthly, weekly and daily basis, and on the basis of the average daily wage provided for in Article 57 hereof for workers paid by the piece. The salary serving as the basis for the calculation of the end-of-service indemnity does not include payments made to the actual worker, housing, transport and travel allowances, overtime, representation allowances, cash allowances, education allowances for children, allowances for recreational and social services, and any other bonus or allowance.


The employer may deduct from the end-of-service gratuity the sums owed to him by the worker.


For the purposes of section 132[2], cases of employment prior to the entry into force of this law shall not be considered as cases for which the worker is entitled to an end-of-service bonus except cases involving nationals, and this without prejudice to any rights acquired by the worker under the revoked labor legislation, the employment contract or any agreement, regulation or regulation of the establishment.

In the event of the worker's death, his end-of-service bonus is paid to the beneficiaries.



If a worker bound by an employment contract of indefinite duration leaves his job of his choice after continuous service of at least one year and at most three years, he is entitled to one third of the end-of-service bonus provided for in previous article.

If his continuous service is three years at most and five years at most, he will be entitled to two-thirds of the said bonus, and to the full bonus if it exceeds five years.



If the worker bound by a fixed-term employment contract leaves his job on his own initiative before the expiry of the contract, he is entitled to an end-of-service bonus only if the duration of the period of service exceeds five years. .


The worker is deprived of his end-of-service bonus in the following two cases:


A- For one of the reasons set out in Article 120 [3] hereof

B - Should he leave his employment on his own initiative, and without notice in cases other than those provided for in Article 121 hereof, and such as regards contracts of indefinite duration, or before the completion of five years of continuous service with respect to fixed-term contracts.



If the establishment has a savings fund for workers and the rules of the fund stipulate that the sums deposited in the fund on behalf of the worker are in return for the legal obligation with regard to the end gratuity of service, the amount saved or the gratuity duly due will be paid to the worker, whichever is greater.

If the rules of the fund do not provide that the sums paid by the employer are in return for his legal obligation in terms of end-of-service gratuity, the worker will receive the sums due to him from the savings fund in addition to the statutory end, service tip.



If the establishment has a pension system, an insurance or a similar scheme, the worker entitled to a pension can choose between this pension, the prescribed gratuity or the money entitled to it from the pension or insurance plan, whichever is better.



Any legal entity operating in the UAE is subject to UAE labor laws and must ensure maximum compliance with labor law regulations. We are able to help organizations with all questions relating to this legislation, including but limited to issues such as: working hours, public holidays, working hours during Ramadan, termination of contract, etc.


We are also able to advise you on the variations between Free Zone and Mainland regulations, as well as the respective differences between each of the Free Zones themselves. We are also committed to informing our customers in a timely manner of any changes in legislation announced by the government.





by Akram Cheik, Lawyer in UAE for Nextcap






[1] Article 121: The worker may leave work without notice in the following cases:

If the employer fails in his obligations towards the worker, as defined in the contract or the law.

If the employer or his legal representative attacks the worker


[2] Section 132

A worker who has spent a year or more in continuous service is entitled to an end-of-service bonus at the end of his service. Days absent from work without pay are not included in the calculation of the period of service and the gratuity is calculated as follows:

1 - Twenty-one days' pay for each of the first five years of service.

2 - The salary of thirty days for each additional year.

Always on condition that the total gratification does not exceed the salary of two years.


[3] Article 120: The employer may dismiss the worker without notice in one of the following cases


:A - Does the worker have to take a false identity or nationality, or present false certificates or documents.

B - Should the worker be appointed on probation and the dismissal occurs during or at the end of the probationary period.

C- If the worker would make an error resulting in colossal material losses for the employer, provided that the Department of Labor is informed of the incident within 48 hours of becoming aware of the occurrence thereof.

D - If the worker violates the instructions relating to safety at work or in the workplace, provided that these instructions are written and posted in a conspicuous place, and that he is warned in case of illiteracy.

E- If the worker fails to carry out his main duties in accordance with the employment contract and does not remedy this breach despite a written investigation into the matter and a warning that he will be dismissed in the event of a recurrence.

F- Should he divulge any of the secrets of the establishment where he works.

G- Should he be condemned definitively by the competent court for a crime of honor, honesty or public ethics.

H - Should he be found in a state of intoxication or under the influence of a narcotic during working hours.

I- Should he attack the employer, the responsible manager or the colleague during the work.

J - Should he be absent without valid reason for more than twenty non-consecutive days in a year, or for more than seven consecutive days.

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