No UAE employment ban for any worker made redundant

I am on a limited labour contract and employed as a sales executive. I have been with the company since December 2013, but now my boss wants to terminate my contract by saying I am not performing well, even though my performance is the same as my colleagues. I have already been given one warning letter. Would I get a one-year ban if they terminate my contract by saying I was performing poorly? GT, Abu Dhabi

If anyone is made redundant by an employer they will not receive a labour ban and are able to go straight to another job without delay. There is also no reduction to their end of service gratuity. There is another issue here, in that GT is on a limited-term contract, so if the employer cancels it before the end of the set period, which is likely to be two years, compensation may be payable to him. Article 115 of UAE Labour Law states that “if the employer has terminated an employment contract with a limited period for reasons other than those provided for under Article (120) hereof, he becomes liable for payment of compensation to the employee against damages sustained by him, provided that the sum of compensation in all events may not exceed the total pay due to him for a period of three months or for the remaining period of contract, whichever is shorter, unless the terms of the contract provide otherwise”. One of the reasons stated in Article 20 is “if he fails to perform his basic duties under the contract of employment and persists in violating them despite formal investigation with him in this respect and warning him of dismissal if the same is repeated”. This can be used to dismiss someone who is not performing their duties properly, but if GT’s sales performance is commensurate with that of his colleagues and the employer tries to use this clause, he could have grounds for making a complaint for unfair or arbitrary dismissal. This should initially be through the Ministry of Labour, assuming GT has evidence to back his claim. Either way, he will not receive an employment ban.

Keren Bobker is an independent financial adviser with Holborn Assets in Dubai, with over 20 years of experience. Contact her at [e-mail]. Follow her on Twitter at @FinancialUAE.

The advice provided in our columns does not constitute legal advice and is provided for information only. Readers are encouraged to seek appropriate independent legal advice.

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