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Moheb Hassan

Moheb Hassan

Lawyer

الأسئلة المجابة 63652 | نسبة الرضا 98.2%

Lawyer

i talked to my employer and she said by end of...

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i talked to my employer and she said by end of the month we will close down the clinic if there is no money to pay the trade license and rent, according to the uae law, if the company close down they are required to pay atleast 2months paid salary to the employee because the company closed down without notice? I just want to know what benefits i can get if my company close down without notice , and how am i protected as an employee by dubai government, cause i cant lose my job out of the blue, i have to send money to support my parents. Should i file a case now or wait until end of month ? I work in dubai health care freezone in a unlimited contract

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إجابة الخبير: Moheb Hassan

Moheb Hassan

Moheb Hassan

Lawyer

الأسئلة المجابة 63652 | نسبة الرضا 98.2%

Dear Customer,                                
Thanks for joining and trusting us, much appreciated!

We would like to inform you that the clinic cannot be closed suddenly without notice thirty days prior to the expiry date of the employment contract or with a notice as stated in the employment contract. In addition to the notice before the termination of the employment contract, you can also apply for compensation for the sudden termination of the employment contract, which is a maximum of three months. Also, as you continue to work for at least one year, you are entitled then to an end-of-service bonus, which is calculated at twenty-one days' wage for each of the first five years and thirty days' wage for each year more than that. The end of service bonus is calculated on the last basic wage after excluding all allowances. You may also request a flight ticket value if you are returning to your country. You can file a complaint only if the clinic is suddenly closed and if your employer refuses to pay your dues, you can file a complaint at the Ministry of Human Resources and Emiratisation.

Here is the text of the UAE Labor Law regarding your inquiry:
Article (115):
Where an employment contract is for a definite term and the employer revokes it for reasons other than those specified in Article (120) he shall be required to compensate the worker for any damage the latter sustains, provided that the amount of compensation shall in no case exceed the aggregate wage due for a period of three months or the remaining period of the contract, whichever is shorter, unless otherwise stipulated in the contract.
Article (117):
1. Either the employer or the worker may terminate an indefinite term contract for a valid reason at any time following its conclusion, by giving the other party a notice in writing at least 30 days prior to termination.
2. For the daily-paid workers, the notice period shall be as follows:
• One week: if the worker has been employed for more than six months but less than one year.
• Two weeks: if the worker has been employed for not less than one year.
One month: if the worker has been employed for not less than five years.
Article (118):
A contract shall subsist throughout the notice period referred to in the preceding Article and shall terminate only on expiry of that period. The worker shall be entitled in respect of the notice period to full pay, calculated on the basis of his last wage, and shall continue to perform his duties during that period if the employer so requests. The Parties may not agree to waive the notice requirement or to reduce the notice period; however, they may agree to extend the period.
Article (119):
If either the employer or the worker reduces the period of, or fails to serve a notice of termination on the other, the forbearing party shall pay the other a “compensation in lieu of notice”, irrespective of whether or not the other party has sustained damage as a result of such failure or shorter notice. The said compensation shall be equal to the worker's wage in respect of the entire or reduced period of notice. Compensation in lieu of notice shall be calculated on the basis of the last wage received, in the case of monthly, weekly, daily and hourly paid workers, and on the basis of the average daily wage referred to in Article 57 of this Law in the case of those paid on piecemeal.

Article (123):
1 - Where a worker is arbitrarily dismissed, the competent court may order the employer to pay him a compensation, to be assessed by the court with due regard to the nature of the work, the extent of damage sustained by the worker and his period of service, and after investigating the work circumstances, provided that such compensation shall in no case exceed the worker's wage for three months, calculated on the basis of his last wage.
2 - The provisions of the preceding paragraph shall not prejudice the worker's right to the gratuity he is entitled to and the compensation in lieu of notice provided for in this law.
Article (132):
A worker who has completed one or more years of continuous service shall be entitled to severance pay at the end of his employment. The days of absence from work without pay shall not be included in calculating the period of service. The severance pay shall be calculated as follows: 1. 21 days' wage for each of the first five years of service. 2. 30 days’ wage for each additional year of service provided always that the aggregate amount of severance pay should not exceed two year's wage.
Article (133):
A worker shall be entitled to severance pay for any fraction of a year he actually served, provided that he has completed one year of continuous service.

Article (134):
Without prejudice to the provisions of laws that grant pensions or retirement benefits to employees in certain firms, severance pay shall be calculated on the basis of the wage last due for monthly, weekly and daily paid workers, and on the basis of the average daily wage referred to in Article 57 hereof for those paid on piecemeal. The wage used as a basis for calculating severance pay shall not include whatever is given to the worker in kind, housing allowance, transport allowance, travel allowance, overtime pay, representation allowance, cashier’s allowances, children education allowance, allowances for recreational and social facilities, and any other bonuses or allowances.

 

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Moheb Hassan

Moheb Hassan

Lawyer

الأسئلة المجابة 63652 | نسبة الرضا 98.2%

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