Making employees redundant is one of the hardest decisions an employer
has to make. At TWS Legal Consultants, we have been advising and
representing UAE businesses on redundancy matters for over a decade.
Our multi-lingual employment lawyers will advise and support you through the redundancy process, ensuring you comply with the correct legal procedures, and your best interests are protected.
Our lawyers are registered with the UK Solicitors Regulation Authority (SRA) and the Dubai Legal Affairs Department.
Redundancy means an employee is dismissed because their role is no longer required, the employer can not sustain their employment due to economic factors, or there is a change in commercial strategy or business location; it is not due to the fault of the employee.
The is no statutory provision for redundancy in the UAE. However, it has been previously acknowledged by the Courts that if an employer terminates an employee to save money, that dismissal may be deemed fair and valid under article 117 of the UAE Labour Law. This article provides that an employee who has an unlimited term contract may be dismissed with a minimum of 30 days’ notice as long as the reason is reasonably valid and fair.
There is no legal requirement to pay redundancy payments. However, you do have to pay standard statutory dismissal payments, as follows:
As redundancy is not independently provided for under the Labour Law, it is imperative that you follow a legally defensible process if you decide to make an employee redundant. Our employment lawyers will advise you from the beginning of the process to ensure you have evidence to prove the procedure and reasons for the redundancy were fair, and a thorough process was undertaken. This, in turn, will ensure you can protect your interests if an employee brings a claim against you in future.
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