sav1979

Hi all, I am new to this site but can't find an exact thread the same.

I was made redundant in December 08 and was working in the Dubai Airport Free Zone. Our company agreed to pay our 21 days gratuity (pro rata) as I had been with the company 19 months, they also paid a mnths salary for our gardening leave. we went to see the free zone authorities who told us our company had to pay 3 months basic salary on top. This went on for over a month and the free zone has written us a letter to take to the labour court as the company refused to agree with them. Does anyone knowhow long the process takes once it goes to court and what are our chances of success.

Thanks

Blue Cat

UAE Labour states 1 months notice. What does your contract of employment say? I know there are different rules in Free Zones.

sav1979

Hi, my contract says one month plus gratuity but it is clearly stated in the free zone rules and regulations that compensation up to a maximum of three months basic salary can be applied and that the free zone have the final say on this. As they ruled that my company do have to pay this and they refused, it has been referred to the labour court. I have the letter from DAFZA in hand and I just need to go and hand it in at the court to start proceedings. I also wondered about the costs for this. DAFZA told us that my company has to ay for solictors etc and that we will not have to pay anything but I am sceptical about this and I cannot afford to pay money for a solicitor etc.

Blue Cat

are you happy to take the one month? if so tell the DAFZA that you are happy and don't want to take legal action.

niddy

Out of curiousity, why did DAFZA say you get three months extra compensation? Based on the labour law you get the extra three months compensation if you are wrongfully terminated. So, are they saying termination for redundancy is wrongful termination?

sav1979

It states in Dafza rules and regulations that any termination of contract other than the specific clause relating to getting sacked is elgible for up to 3 months compensation on top of gratuity and final salary payment.

http://www.dafza.gov.ae/ch/info/empl...migration.aspx

Clause 1.8.9 and 1.8.10

niddy

That is interesting. They've left a clause out of the labour law which says that an employee may be terminated "for a valid reason." Anyway, glad to see DAFZA is siding with the employee in this case.

sav1979

Yes, it looks as though Dafza do side with the employee but I suppose it remains to be seen. I just heard from a former colleague that if you take your employer to court you are unable to get a visa for another company whilst in dispute. Anyone know if this is correct?

g18c

Hi, was your contract open ended or fixed term? If fixed term then yes the 3 months compensation applies.

Do you have a copy of your DAFZA contract?

I'm going through the same thing, made redundant now my company is trying to screw me, was down the Ministry of Labour today, I’m not an expert but with help of friends and a few wonderful people on here i now feel i have a good understanding of the law now.

I think UAE Labour Law over-rules any freezone rules... be careful if you are indeed on a open ended contract (whether if that is possible in freezones i am not sure).

Two good links:

http://www.zu.ac.ae/library/html/UAE...ELabourLaw.pdf

UAE Labour Law from the MoL site:

http://www.mol.gov.ae/molinfo/showAt...ent=0&refid=72

Regards

g18c

Correct they wont cancel your visa if a dispute is in place.

sav1979

Hi, my contract was open ended and strangely enough I nor any of my colleagues ever saw or knew about a DAFZA contract and the only ones we had were the ones from our company. The DAFZA official told us that when we lodge the case at the court they will give us a receipt, we then have to take this receipt back to DAFZA within 30 days along with our passports and they will cancel our visa which takes a couple of days. According to DAFZA the difference on compensation between fixed and open term is that fixed month is max 3 months full pay and open ended is max 3 months basic pay (ie minus housing allowance)

Blue Cat

termination notice always includes all benefits.