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Waleed Al-Helo
Lawyer
الأسئلة المجابة 108892 | نسبة الرضا 98.1%
Lawyer
We have been working with the company for more...
We have been working with the company for more than 4 years, on limited contract, with renewal every 2 years. Until July, we have received our salary. In July we were told by company that company is having some financial problems and are doing financial restructuring. As part of financial restructuring, the company started terminating staff or asked the staff to tender resignation as the company wants to cut down cost. Understand from staff who have been asked to tender resignation that, the company told them that Full & Final settlement will be done in 4 installments within 6-8 months and there will not be settlement of bonus. In June-20, company had notified staff about awarding performance linked bonus for the financial year 2019 (letter attached for your reference) by email : If definition of remuneration, as per federal law 08 of 1980, is as per below : ++Quote++Remuneration is whatever is given to the employee in consideration of his services under the employment contract, whether in cash or in kind, payable annually, monthly, weekly, daily, hourly, or by piece-meal or pro rata to the production or as a commission.The remuneration includes the high cost of living allowance, and any benefit given to the employee in reward for his honesty or efficiency, provided always that these amounts are prescribed in the Company bylaws or in the employment contract, or normally practiced or granted to the employees, until they have been regarded by these as an integral part of the remuneration rather than a donation.++Unquote++Would be grateful if you could, clarify how court will interpret 02nd para of remuneration, which “inter alia” states, “provided always that these amounts are prescribed in the Company bylaws or in the employment contract, or normally practiced or granted to the employees, until they have been regarded by these as an integral part of the remuneration rather than a donation” –a) What does normally practiced and granted to employees mean ? Can we establish that bonus is routine practice of the establishment and that’s why they had declared bonus through the official award letter (copy attached for your reference) ?b) What does prescribed in the company bylaws mean ?c) Does the court interpret the entire remuneration clause in favour of the employer, as it’s 1st part states that remuneration is subject to employment contract ?d) Under UAE law, Free zone employment contract would be considered as binding contract or company issued employment contract ?e) The bonus letter is relevant to year 2019 (and restructuring exercise started in July20), by this can we establish that said amount of bonus is employee arrears and hence, we have lien over assets of the establishment, before secured creditors ? f) how long usually court takes to final the judgement ? g) If we (group of 10-12 employees) appoint to you to safeguard our interest then what would be your total fees ? are you working on "no win, no pay" concept ? Look forward to hearing from you, please.
إطرح سؤالك
إجابة الخبير: Waleed Al-Helo
Waleed Al-Helo
Lawyer
الأسئلة المجابة 108892 | نسبة الرضا 98.1%
We would like to inform you that referring to the Federal Labor Law, first the contract is the law of the contracting parties, so if the work is terminated by the employer, which means the visa is terminated, the employer is not obligated to pay the housing allowance to you.
However, to complete the work if it was arbitrary, the law requires the sponsor to pay compensation to the worker, according to the following provisions of the law due to Corona situation and to prevent its spread and save the employers interests.
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.
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 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 (75):
A worker shall, for each year of service, be entitled to an annual leave of not less than:
1. Two days a month, where the worker’s period of service is more than six months but less than one year.
2. 30 days a year, where the worker’s period of service is more than one year.
Where a worker's service is terminated, he shall be entitled to annual leave in respect of fractions of the last year.
However, to complete the work if it was arbitrary, the law requires the sponsor to pay compensation to the worker, according to the following provisions of the law due to Corona situation and to prevent its spread and save the employers interests.
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.
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 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 (75):
A worker shall, for each year of service, be entitled to an annual leave of not less than:
1. Two days a month, where the worker’s period of service is more than six months but less than one year.
2. 30 days a year, where the worker’s period of service is more than one year.
Where a worker's service is terminated, he shall be entitled to annual leave in respect of fractions of the last year.
الرد من العميل
Thank you. Whether worker is eligible for the bonus amount for the FY 2019 (for which official letter issued by the company in June20). If yes, how does low protects workers ? And under which section of federal law - worker can claim his outstanding bonus amount ?
الرد من العميل
Does survliance pay and gratuity both are same or different from each other ?
إجابة الخبير: Waleed Al-Helo
Waleed Al-Helo
Lawyer
الأسئلة المجابة 108892 | نسبة الرضا 98.1%
Dear Guarantee of workers' rights is the labor law and thus as it has been explained to you in the sense that the worker who spent a year in the service of the employer and his work was terminated by the company without the worker's desire is entitled to request the remuneration according to the text of Article (132) of the Labor Law, as was previously explained, and thus it is possible Addressing the complaint before the Labor Office and the claim. As for the other part of the question, residency is one thing, and the reward is another, meaning the costs of residence, which are borne by the employer, especially if the work is terminated by him, and regarding the remuneration, it is paid to the worker immediately after the end of work
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Waleed Al-Helo
Lawyer
الأسئلة المجابة 108892 | نسبة الرضا 98.1%
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