C.M

Good morning,

I wonder can somebody clarify something.

A friend of mine has worked with LOR for around 10 years, he arrived in the UAE about 9 months ago and is pretty certain he will be made redundant in the coming days.

If he is made redundant is he entitled to severance pay as per British standards, therefore almost 10 years redundancy?

Or will he be given 9 months redundancy pay at the UAE standard?

Thanks for your help.

C

Blue Cat

that depends on his contract, if it was a new contract of employment then I would imagine he would be entitled to just the 9 months. It also depends on whether he was paid in the UK or here?

C.M

NOt sure about his contract nut he was definintely paid in the UK.

So it really depends on whether he signed a new ocntract or not?

Thanks

Blue Cat

I have a feeling he is entitled to full redundancy in the UK, if his contract was in Sterling and signed in the UK. Tricky one.

C.M

THanks for your help, appreciate it.

Meow

Where he signed it does not matter, but the issue is whether he is on a UK employment contract, with the rights that confers, or whether he accepted new terms on moving to the UAE. The currency in which he is paid is also not relevant.


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busybee2

lor are paid in sterling thats all i know

n1na

Dear C.M,

your friend will not get even 9 months considered. LOR has a company pension scheme in the UK for people who work and used to work over there.

The UAE redundancy payment is only for people who do not participate in any retirement scheme. It is not a 'free' gratuity, it is a replacement for the pension schemes which virtually do not exist in the UAE.

Meow

I think you are getting confused. A redundancy payment for someone on a UK contract is nothing to to with the UAE gratuity scheme. That would not be relevant if they are on a UK contract and have a UK pensions scheme. Besides, a UAE gratuity doesn't even come into play until after 12 months service.

I don't know what LOR offers its staff, but if someone is on a UK employment contract they may continue to remain an active member of a UK employers scheme (subject to HMRC rulings) and if that is the case they would not have a UAE gratuity. The issue of whether they are entitled to UK redeundancy is purely down to the specific contract terms agreed with the employer prior to moving to the UK, as they are not entitled to anything under UK law if not working in the UK.

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