MADE REDUNDANT? KNOW YOUR RIGHTS!

If you've just been made redundant and have no idea on what rights you might have in terms of your end of service benefits and severance package from the company, you've come to the right place as I had reached out to legal experts when I WAS MADE REDUNDANT (Read this article before you continue reading this one) to ascertain what my legal rights are, especially since this whole discussion on limited and unlimited contracts can be extremely confusing for the uninitiated. Moreover, one of my previous employers were trying to pressure me in to waiving my rights (by signing a resignation letter) which prompted me to seek out expert legal advice, that is, Mr. Badi Fattah, Partner at Abdo Rafiq & Partners Attorneys & Legal Consultants.

It seems it is a common practice in this market where employers will obtain signatures from employees under duress. Ever since I engaged the professionals at Abdo Rafiq & Partners, they have guided me and I hope that a brief comparison from Mr. Fattah might help others in distress especially given the current economic environment and some of the wayward practices out there.

Now let's start with what is an unlimited contract VS a limited contract and how to identify which category you fall in -

Under the UAE Federal Labour law there are two varieties:

Limited Contracts

• Customarily used for project basis recruitment
• Fixed term employment contracts
• Intended to terminate at the end of a mutually agreed time period

Unlimited Contracts

• Considered to be open-ended
• Can continue for a number of years without a set term

The latter is the more common variety in the local market and typically preferred by both employers and employees alike. If you are not sure which category you fit in, the best place to verify this is on your MOHRE contract which will mention the type of contract you are on.?

So let's say, you've got a limited or unlimited contract, what does that mean in legal terms. Here are a few of the differences between the two varieties:

Limited Contracts

• Longer notice period, typically 3 months has to be provided
• In case of early termination by employer, employee is entitled to minimum three months’ notice and full gratuity at the appropriate rate for time completed
• In case of early resignation employer is entitled to compensation and in addition the employee loses gratuity (unless 5 years already and completed by employee)

Unlimited Contracts

• Shorter notice period, typically 1 month (can be varied contractually)
• In case of early termination, terminating party must provide notice
• If resignation (by the employee) is during year 1 to 3 then one-third gratuity or if resignation is during year 3 to 5 then two-thirds gratuity are due to the employee.

I hope this information helps you during these tough times to negotiate your end of service entitlements. Regardless of your specific circumstances, if there is one thing, that should be stressed upon, it is this -

NEVER sign any document given to you by the HR, PRO or company representative without first understanding the fine print. I've certainly learned a lot from my experience.

If you have other inputs, please feel free to SHARE in the comments below. If you still have questions, please drop a comment below and I will try my best to get the required information and of course you can always contact the professionals directly for your legal issues -

Badi Fattah – Abdo Rafiq & Partners, +971800-277-529, [email protected]

Now, if you or a friend needs guidance on dealing with redundancy, read this article as it helped me survive and I'm sure it will help you too - I WAS MADE REDUNDANT

And if you're a #Jobseeker and find vacancies posted by someone in your network and it doesn't fit your profile, please share it with others in this group https://www.dhirubhai.net/groups/13743565/ as it might really help someone survive.

Let's help each other make it through this one!