KT reader wants to know the available options after the company gave the letter citing 'cost-cutting measure' as the cause
Question: I received two 'best employee' awards from my company in Dubai this year. However, I was shocked when I was given a termination letter last month. The letter states it's a cost-cutting measure. Considering that I have exceeded all my targets and received recognition from the company for my work, will I have a strong case if I file for arbitrary dismissal?
Answer: Pursuant to your queries, it is assumed that you were employed in the mainland of Dubai. It is assumed that your employer has terminated you by serving a stipulated notice period as mentioned in your employer contract, and you are currently serving the notice period. Therefore, the provisions of Federal Decree-Law No. 33 of 2021 on the Regulation of Employment Relations and Cabinet Resolution No. 1 of 2022 on the Implementation of Federal Decree-Law No. 33 of 2021 Regarding the Regulation of Employment Relations are applicable.
In the UAE, an employer may terminate an employee by serving a stipulated notice period as mentioned in the employment contract. This is by Article 43 (1) of the Employment Law, which states, "Either party to an employment contract may terminate the contract for good cause by giving the other a notice in writing. The employee shall perform his duties during the notice period agreed upon in the contract, provided that the notice period is not less than 30...
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