Labour Law states no clear rules for redundancy pay

I have been working as a project engineer in a free zone company in Ras Al Khaimah. Just a few days ago, my HR manager told me the company is cutting costs, which will result in the termination of some employees, including me. I have a RAK free trade zone

Under the UAE Labour Law, all employees must be given the appropriate amount of notice once they are permanently employed and out of their probationary period. This is a minimum of 30 days per Article 117, but can be longer if stated in the contract of employment provided at outset and agreed by both parties. There is no provision for redundancy pay in the Labour Law, although some employers choose to make an additional payment, this is not common. There is a clause, Article 122, in respect to arbitrary dismissal, which can allow for an additional payment to be made but this is not likely to be upheld if a company is making a significant number of employees redundant. One other reason a person can be entitled to an additional payment is if they are on a limited contract. Article 115 states: “should the employment contract be of a determined term … he shall be bound to compensate the worker for the damage incurred thereto, provided that the compensation amount does not exceed in any case the total wage due for the period of three months or for the remaining period of the contract, whichever is shorter, unless otherwise stipulated in the contract”. Upon termination of employment, the residency visa is also cancelled, so the validity becomes irrelevant. I signed an offer letter with a company in Abu Dhabi on May 19, 2016. They organised a change of visa status to an employment visa on July 11 last year and the stamping of the visa took place on October 10. My residency visa has an expiry date of October 8, 2018. I am unclear as to when my actual start date and contract dates are as I was told to sign the employment contract without reading. Also, after the dissolution of the contract, who holds the residency card? UU, Abu Dhabi The date on which an application to the Ministry of Human Resources and Emiratisation (MOHRE, formerly Ministry of Labour) is approved is usually the agreed start date of any period of employment and this will be on the contract that is lodged with the Ministry. The date any contract is signed is not the start date and no one should ever sign any paperwork without reading it. Any employee is entitled to obtain a copy of this legal contract and can request a copy via the MOHRE website, eservices.mohre.gov.ae. I am on an unlimited contract of employment and have a query about standard terms. The company says it will not provide repatriation flights if I resign at any time. The terms of the contract are sketchy, as it mentions flights home but only when the contract ends. What am I entitled to by law? JM, Abu Dhabi There is nothing in the UAE Labour Law that states that an employer has to provide annual flights to an employee and that is purely a contractual agreement. While this is fairly standard for many companies this is a matter of habit and practice rather than legal obligation. Article 131 sets out entitlement to a flight at the end of service. This states: “The employer shall, upon the termination of the contract, bear the expenses of repatriation of the worker to the location from which he is hired, or to any other location agreed upon between the parties. Should the worker, upon the termination of the contract, be employed by another employer, the latter shall be liable for the repatriation expenses of the worker upon the end of his service. Subject to the provisions of the preceding clause, should the employer not repatriate the worker and not pay the expenses of such repatriation, the competent authority shall do so at the expense of the employer. Such authority may recover such expenses by means of attachment. Should the reason of the termination of the contract be attributable to the worker, the latter shall be repatriated at his own expense should he have the means therefore”. It is therefore clear that should a person resign, and have the means to pay for a flight back to a home country, they must pay this themselves. Keren Bobker is an independent financial adviser and senior partner with Holborn Assets in Dubai, with over 20 years’ experience. Contact her at keren@holbornassets.com. Follow her on Twitter at @FinancialUAE. The advice provided in our columns does not constitute legal advice and is provided for information only.