Employment Law in Dubai: The Law On Termination of Employment

Under Dubai Law, which is governed by United Arab Emirates (UAE) labour law, an employer must give an employee a minimum notice period of 30 days before termination of an employment contract. The United Aram Emirates law is inflexible in this respect which means that the law allows no room for negotiation, even when the employer is willing to consent to a shorter time period. Any shorter contractual notice period is unlikely to be enforceable by the employer.

Upon termination of employment, the United Arab Emirates labour law states that an employee must be reimbursed for all entitlements they have not been able to benefit from, such as unutilised leave. If the employee has worked for the company continually for at least a year, and does not participate in the Company's pension scheme, gratuity is owed to them on the termination of their employment. This is payable at a rate of 21 days a year for 1 - 5 years service, and 30 days for over 5 years. This is rightfully theirs as an 'end of service benefit.' UAE law specifically states that on termination of a contract, an employer must return an employee to their country of origin, should the employee fail to find alternative employment within a set time period.

It should be noted that there are no provisions under UAE for redundancy; hence they do not recognise 'redundancy compensation' per se. The UAE does however state, that an employer should provide pay of up to 3 months salary, where they have terminated the employment for a reason other than the employee's performance. Hence, in practice there is a provision for redundancy, just not in those words; yet this issue is still a very contentious one. UAE Labour Law could get complicated but all in all sides with the employees more often than not.

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New Labor Laws Don't Mean Much Until the Trial Lawyers Start Creating Case Law

The government often makes laws, and everyone assumes that that's how things will go. But often the laws the government makes are found to not be okay with the courts, and then the trial lawyers, and lawsuits begin. Eventually there's a lot of case law which changes the way in which companies do business, or how business is done. At no other place is this more significant than in the labor laws of our country.

Perhaps we should look at all the laws that are created in general first. Okay so, I live out in California, and we are always voting on new laws to take back the insanity of political correctness here and restore things to a realistic line of thinking in our governmental policies. "Fat Chance," say some and perhaps they are correct. California has overturned many of the laws in the court system that the voters have overwhelmingly voted for.

This same thing happens, when Congress creates new labor laws, for instance the way that employees are allowed to vote to determine if they wish to be unionized or rules and OSHA standards protecting workers, or laws protecting whistleblowers, and employees of large corporations. You see, new labor laws don't mean a whole lot until the trial lawyers start creating new case law, and once they do that mountain of bureaucracy builds on its own.

Then it gets into contracts, human resource procedures, labor negotiations, and it spreads across the country from jurisdiction to jurisdiction, it eventually goes international. This is why we have to be so careful when we make laws in Congress on labor issues. Just because we make a lot doesn't mean it will stick, and it may have incredibly adverse unintended consequences. In fact, many of the labor laws created to protect employees, actually end up hurting them, making their lives miserable, and force hundreds of thousands of people out of work.

Consider if you will issues with minimum wage, discrimination in employment, and bullying in the workplace. All of these laws have created unintended consequences, and that's before we even start talking about such things as sexual harassment, or PC rules of conduct within outside the organization. Please consider all this.

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