An employee whose contract was arbitrarily dismissed without a warning will receive AED 192,000 in unpaid wages, gratuity, and compensation.
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By definition, arbitrary dismissal is any form of dismissal or coerced resignation for unlawful or unproven reasons, or against the specific rules and regulations set down by the government. Therefore, the erring firm involved will be held liable by the law and may be handed a hefty fine or penalty for malpractice.
UAE Expat to Receive AED 192,000 Over Arbitrary Dismissal by Employer
The Abu Dhabi Labour Court of Appeal upheld an earlier ruling of the Court of First Instance that found the firm in question guilty of arbitrary dismissal. The higher court, however, reduced the compensation amount from AED 267,113, the Khaleej Times reported.
As per Article 122 of the UAE Labour Law, the termination of the employment of the worker by the employer shall be deemed arbitrary should the cause of termination not be related to the work, in particular, should the termination of the employment of the worker be made by reason of the filing by the latter of a serious complaint before the pertinent authorities or a valid claim against the employer.
The expat, who was earning a monthly salary of AED 24,000, said he hadn’t received his wages or any end-of-service benefits. He demanded his unpaid wages, annual leave allowance, warning and overtime allowances, and compensation for arbitrary dismissal. The employee also demanded a certificate of experience from his former employer.
In line with this, an accounting expert appointed by the appellant court said the total payable salary was AED 100,000, leave allowance AED 4,000, and the end of service gratuity AED 33,000. The rest of the amount granted to him is compensation for the arbitrary dismissal.
However, the court found out that the appellant did not provide evidence of his entitlement to overtime allowance and other claims.
In justification of its ruling, the judge explained that the compensation for unfair dismissal is decided by judicial authorities to “ensure justice and fairness between all parties”.
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