Question
I have 13 years of sales experience in the UAE. I was working as a sales manager in a leading MNC for the past nine years. I shifted to a relatively new and small company as sales director in November 2015 with 3 months probation period in the offer letter and six months probation period in labour contract. Now after completing just four months, they have given me a month's notice to relieve. They have mentioned 'The reason for this is due to serious financial issues which are simply not sustainable'. T
I have 13 years of sales experience in the UAE. I was working as a sales manager in a leading MNC for the past nine years. I shifted to a relatively new and small company as sales director in November 2015 with 3 months probation period in the offer letter and six months probation period in labour contract. Now after completing just four months, they have given me a month's notice to relieve. They have mentioned 'The reason for this is due to serious financial issues which are simply not sustainable'. T
he company is facing financial crisis and out of the total 10 employees, they have retained only two and given notice to rest of the eight. All the employees have demanded three months' salary as compensation from the company. As I am still on probation, am I eligible for the compensation? Can I demand compensation as I left a stable and secure job in an MNC to join this company? Also, can my employer impose a labour ban on me in any case?
Answer
Based on your labour contract you may not be eligible for any compensation except to that of your unpaid salaries and annual leave salary as you are on probation period in accordance to Article 120(b) of the Federal Law No. 8 of 1980 (the 'Labour Law') related to Labour Relations in the UAE, which states: "An employer may dismiss a worker without notice if the worker is engaged on probation and is dis-missed during the probationary or on its expiry."
Based on your labour contract you may not be eligible for any compensation except to that of your unpaid salaries and annual leave salary as you are on probation period in accordance to Article 120(b) of the Federal Law No. 8 of 1980 (the 'Labour Law') related to Labour Relations in the UAE, which states: "An employer may dismiss a worker without notice if the worker is engaged on probation and is dis-missed during the probationary or on its expiry."
However, you may claim compensation from your employer in case your offer letter, which states probation period as three months, is filed with the ministry. Thereby if there is contradiction regarding the labour contract and the offer letter, then whichever agreement is ad-vantageous to the employee is nor-mally taken into consideration in accordance to Article 7 of the Labour Law which states: "Any stipulations contrary to the provisions of this Law, even if it was made prior to its commencement, shall be null and void unless they are more ad-vantageous to the worker."
Further, the courts may not grant you any compensation for leaving a stable and secure job in a multi-national company and joining the current employer as this decision was purely on your own accord.There shall be no labour ban on you even though you have not completed six months of service with your employer provided you fulfill your salary criteria as per your educational qualifications in accordance with Article I (2) of Article II (2) of Ministerial Decree 766 of 2015 on Rules and Conditions for granting a permit to a worker for employment by a new employer depending on nature of your employment contract which is also read with Article 4 of the Ministerial Order No. 1186 of 2010 which states: "As an exception to the provision of the item No.2 of Article 2 of this resolution the ministry may issue a work permit to an employee without requir-ing the two-year period in the following cases: a) In the event that the employee is starting his new position at the first, second or third professional levels after fulfilling the conditions for joining any of these levels according to the rules in force at the ministry, and provided that his new wage is not less than Dh12,000 at the first professional level, Dh7,000 at the second professional level and Dh5,000 at the third professional level."
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