# Compensation for redundancy and EOS calculation



## chestnut (Apr 1, 2013)

Hi all,

I'm on an unlimited contract with a company in TECOM. They are making my role redundant - they wrote to me saying:
We regret to inform you that the management has decided to terminate your employment with "company-name", as part of the internal restructuring taking place within the company. Accordingly this letter serves as written notice whereby your last working day with the company will be on 3rd February, 2016.

This was given to me on 03 November 2015. The company gave me 3 months' notice despite my contract only requiring them to give me 1 month.

I have been looking for clarity as to what "compensation" I might get. A search brought up a number of posts which suggest that I could get up to 3 months. The links in the various posts were dated (2009) or didn't work. Can anyone point me at recent law or articles on what compensation is due for this "unlawful termination"?

Also, as I am being given 3 months notice, would this affect the "compensation"?

Last but not least, when calculating the end of service, all the posts I have seen talk (for my case) of 21 days per year. I have worked at this company for 1 year and 6 months. Is this pro-rated for the final year? Would the calculation be 21 * 1.5 * salary/365?

Many thanks in advance for any help you can give.


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## chestnut (Apr 1, 2013)

chestnut said:


> ...
> Is this pro-rated for the final year? Would the calculation be 21 * 1.5 * salary/365?
> ...


I've found the following from MOL:
Article 133 -
The worker shall be entitled to a gratuity for the served fraction of a year, provided that he completes one year of continuous service.

Can anyone confirm if this applies to TECOM?

Thanks


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## BedouGirl (Sep 15, 2011)

I'd be inclined to call the Tecom office tomorrow morning to find out exactly where you stand.

Good luck in whatever you decide to do.


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## Stevesolar (Dec 21, 2012)

chestnut said:


> Hi all,
> 
> I'm on an unlimited contract with a company in TECOM. They are making my role redundant - they wrote to me saying:
> We regret to inform you that the management has decided to terminate your employment with "company-name", as part of the internal restructuring taking place within the company. Accordingly this letter serves as written notice whereby your last working day with the company will be on 3rd February, 2016.
> ...


Hi,
From what I understand - as you are on an indefinite contract, the company only needed to give you one months notice plus your gratuity - 1 year plus 5 months pro-rata.
Had you have been on a definite contract - then both parties need to pay compensation if the contract is to be terminated before its definite end date.
Good luck with job hunt/change.
Link to UAE Labour law:-
http://www.gulftalent.com/repository/ext/UAE_Labour_Law.pdf

Cheers
Steve


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## twowheelsgood (Feb 21, 2013)

I think the confusion comes in on this topic, from people affected, over the use of the word 'compensation'.

This is not Europe and therefore no compensation is due under any circumstances as compensation (to me anyway) implies a payment for inconvenience or an expectation of money in lieu of losing the job, beyond your salary being due and any money accrued on your behalf. 

What you get is your gratuity sum which is contractually yours under any circumstance even though the value might vary, plus your salary for your notice period, for which you can be asked to work. So on the day you leave, you don't get another financial 'cushion'.

So as such you don't get a fil in 'compensation' as might be expected in Europe.


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## chestnut (Apr 1, 2013)

I think the "compensation" that I had read about applies only in DIFC (which has different labour laws).

Thank you all for your responses.


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## Fat Bhoy Tim (Feb 28, 2013)

chestnut said:


> Hi all,
> Would the calculation be 21 * 1.5 * salary/365?


Afraid not. 

It will be (21 * 1.5 * salary/365) * 1/3

Those who stay with an employer for less than two years entitled to one third. Three to four years is two thirds, the full amount is only eligible after 5 days.

EOSB is a joke until you finish a minimum of 2 years.


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## twowheelsgood (Feb 21, 2013)

Fat Bhoy Tim said:


> Afraid not.
> 
> It will be (21 * 1.5 * salary/365) * 1/3
> 
> ...


Are you sure Tim ?

The OP was made redundant - and didnt resign. I thought you got the full amount if he company decides you are no longer wanted.


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## Fat Bhoy Tim (Feb 28, 2013)

twowheelsgood said:


> Are you sure Tim ?
> 
> The OP was made redundant - and didnt resign. I thought you got the full amount if he company decides you are no longer wanted.


Quite possibly, but not 100% certain. Been a while since I've fired up my LL copy as I haven't worked in that area for a while.


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## TallyHo (Aug 21, 2011)

I think Twowheels is correct.

If fired/redundant, you get the full amount. If you resign on your own behalf, you get the lesser amount.

It's another reason for being very careful before signing anything confirming your ESOB as unscrupulous employers may try to weasel out of paying the full amount.



Fat Bhoy Tim said:


> Quite possibly, but not 100% certain. Been a while since I've fired up my LL copy as I haven't worked in that area for a while.


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