# Redundancy compensation



## R_DSilva (Nov 6, 2008)

Would be grateful if someone can shed some light on redundancy compensation in Dubai. I looked through the archives in this forum but could not find any information.

My wife has been issued a letter stating clearly that her position has been 'made redundant', and she has been given her salary for the notice period (1 month) and gratuity for the time she has worked. 

But I understand that as per UAE law, an employee is entitled to three months salary for being redundant. 

Any information would be appreciated. Thanks !


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## Ogri750 (Feb 14, 2008)

This is taken from the UAE Labour Law

*On the termination of the employment contract, an employee is entitled to the following:

1. A notice period, or any amount due in lieu of the notice period in the case of an unlimited contract.

2. In the case of an unlimited contract, compensation for unreasonable dismissal if the contract was terminated by the employer for unreasonable cause.

3. In the case of a limited contract, compensation equivalent to the period until the end of the contract, or three month’s wages, whichever is shorter.

4. Payments equivalent to the balance of unutilised leave or any part thereof.

5. Payments for overtime or any balance of wages due and not yet paid.

6. End of service gratuity calculated on the duration of the employment.

7. Repatriation expenses as per the Law or the employment contact, subject to the employee not being in violation or in breach of either the Law or the employment contract.*


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## R_DSilva (Nov 6, 2008)

*Redundancy*



Ogri750 said:


> This is taken from the UAE Labour Law
> 
> *On the termination of the employment contract, an employee is entitled to the following:
> 
> ...


Thanks for the information ! 

The way I see it, she is entitled to compensation. Meanwhile I came across an interesting article from a UAE law firm (Al Tamimi - quite a reliable firm). It basically says that the jury is still out on whether or not you're entitled to compensation if made redundant. If a redundancy is 'fair' (i.e. company closing down) you are not entitled to compensation, but if it is 'unfair' you should get some compensation.

http://www.arabianbusiness.com/551627-handling-redundancies-in-the-uae

This could be useful for other readers.


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## calypsocooler (May 7, 2009)

Thank you very much Silva!
I got back from my holidays 2 days back and was informed yesterday that my position was scrapped! 
As the mentioned article originates from the law firm my ex-company is using frequently I see some hope on the horizon...


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