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Lieu payment instead of working full notice period

Lieu payment instead of working full notice period

Old Jan 19th 2016, 5:50 am
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Default Lieu payment instead of working full notice period

Found out a week or so ago that I was being made redundant. I have a 3 month notice period, and my employer wants to pay me in lieu of the final 2 months. My question is, to which date should my final settlement, both UAE and company (i.e. unused holiday pay etc) be calculated? Is this my last working day (31st Jan) or the last day of the 90 day notice (4th Apr)?
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Old Jan 19th 2016, 8:23 am
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Default Re: Lieu payment instead of working full notice period

Sorry to hear that. As one door closes...

Logic says its 4 Apr, since your contract states that your employer can't terminate your employment without 3 months' notice. Payment in lieu of notice is just to get you fobbed off quickly. However, there will no doubt be (or should be) a Settlement Agreement (or some such) describing the situation, and at least all the company-related matters should be dealt with in there. If they're a typical employer (or their HR department is typical), they'll be looking to screw you / minimise their costs, so will probably be offering the two months pay in lieu of notice in exchange for all benefits being calculated to 31 Jan. Most employment contracts don't cover such eventualities, so it becomes a negotiating game. You could stand firm and insist everything's calculated till 4 Apr, and they could withdraw the 2 months in lieu.

As to UAE state-related benefits, I would imagine that they can't be negotiated away, but that's just a guess.

Hope it works out for you. For most people it does.
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Old Jan 19th 2016, 5:46 pm
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Default Re: Lieu payment instead of working full notice period

Dig out your labour law and see if you are being terminated for one of the stipulated reasons which I ver much doubt you are. Being laid off because of downturn is not stipulated. You may be in for a pleasant surprise that HR will have forgotten some how.
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Old Jan 22nd 2016, 4:20 pm
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Default Re: Lieu payment instead of working full notice period

My husband was made redundant a few months ago, in his experience his international company has and is doing everything in their power to not give him his due settlement, despite the law being fairly clear on terminations.

This includes pleading poverty to the freezone on why they can't meet the minimum legal requirements.

Five people have been made redundant over the last few months and every one was offered less than they were entitled to. Three accepted an enhanced offer (still less than legal minimum), one is considering their options and we are going to court.

If you are on a fixed term contract, look at it carefully, you might indeed find some information that hr has overlooked. He was made redundant due to downturn, so not a recognised reason for termination.

Of course, you may not have been on a fixed term contract (I'm not) but it seems fairly common in some industries.

Good luck with your settlement, I hope your company is one of the good ones.
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Old Jan 24th 2016, 8:55 am
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Default Re: Lieu payment instead of working full notice period

Originally Posted by the_red_sheep View Post
Found out a week or so ago that I was being made redundant. I have a 3 month notice period, and my employer wants to pay me in lieu of the final 2 months. My question is, to which date should my final settlement, both UAE and company (i.e. unused holiday pay etc) be calculated? Is this my last working day (31st Jan) or the last day of the 90 day notice (4th Apr)?
If it permitted to make a payment in lieu of someone working the full notice period under UAE Labour Law but your visa should remain valid (unless you agree otherwise) until the end of the full notice period. All payments are calculated to the final day of employment, so the last day of the notice period.

I covered a similar query in my latest column: UAE end of service gratuity includes notice period for laid-off worker | The National

I assume you are on an unlimited contract? There are different rules for limited and unlimited contracts

There are few cases where people are entitled to an additional payment, generally for unfair dismissal, but if you are being made redundant for economic reasons you won't be able to claim any extra monies.

Do not sign any papers to say you have received your final settlement until you actually get it and be aware that your bank account will be frozen once the final salary payment is made, assuming it is marked a such. Take out cash to tide you over until the account is unfrozen which should be fairly swift if you have no debts or loans.
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Old Jan 27th 2016, 4:39 am
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Default Re: Lieu payment instead of working full notice period

All, Thank you for the responses. To clarify I am on an unlimited contract, and reason for termination is the downturn on the oil & gas market. My employer will pay my salary until the end of the 90 noticed period (4th Apr), but is trying to calculate all other payments, including UAE end of service gratuity, to my last working day (31st Jan). Fundamentally, to me, that doesn’t make sense. As I see it I should not be financially penalised because my employer is choosing not to make me work the full notice period. Meow – thank you for pointing out the requirement for the visa to stay open, this has been another bone of contention. Is it the same then that medical insurance should also run until the end of notice period?
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Old Jan 30th 2016, 10:33 am
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Default Re: Lieu payment instead of working full notice period

Originally Posted by the_red_sheep View Post
All, Thank you for the responses. To clarify I am on an unlimited contract, and reason for termination is the downturn on the oil & gas market. My employer will pay my salary until the end of the 90 noticed period (4th Apr), but is trying to calculate all other payments, including UAE end of service gratuity, to my last working day (31st Jan). Fundamentally, to me, that doesn’t make sense. As I see it I should not be financially penalised because my employer is choosing not to make me work the full notice period. Meow – thank you for pointing out the requirement for the visa to stay open, this has been another bone of contention. Is it the same then that medical insurance should also run until the end of notice period?
It is indeed. You must have all benefits until the final official working day, or when the visa is cancelled if that is later. Legal requirements.

Good luck.
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