9.40 PM Tuesday, 23 April 2024
  • City Fajr Shuruq Duhr Asr Magrib Isha
  • Dubai 04:28 05:46 12:20 15:47 18:49 20:07
23 April 2024

3 months' pay for unfair dismissal: Dubai Court

Published
By Mohammad El Sadafy

The Dubai Court of Cassation has established a new legal principle that stipulates an employee cannot be arbitrarily dismissed.

The court, in its ruling, also confirmed that a company, which ends the services of an employee has to pay three months’ salary as compensation, if unfair dismissal is proven.

The Court of Cassation ruled that end-of-service gratuity in such a case will be based on the last contract signed between the company and the employee.

The court ruled that if the last contract signed by the company showed a hike in the basic salary of the employee, the employee has a right to get end-of-service gratuity based on the new salary, as long as the company cannot prove that the contract is void.

The above principles were all based on the Court of Cassation verdict issued in a case which involved a Development Manager seeking Dh180,000 as compensation from a company, which he claimed arbitrarily dismissed him.

The court, ruling in favour of the employee, directed the company pay him end-of-service gratuity on the basis of his last monthly salary as well.

The plaintiff said he joined the company a year-and-a-half ago on a monthly salary of Dh60,000.

He alleged the company had delayed the last few salaries and he filed a complaint to the Ministry of Labour.

The company then dismissed him alleging mismanagement of projects.

The company claimed in its appeal that the employee resigned voluntarily on the basis of a letter in which the employee wrote that he wanted to hold a meeting to discuss his leaving the company.

The Court of Cassation rejected the claim of the company.