‘My contract was terminated while I was on maternity leave. Is that legal?’ Q

I was laid off while on maternity leave and this had nothing to do with the coronavirus situation. I worked in an office and my role is still required. The termination was not related to my performance either. What are my rights? EC, Abu Dhabi

AThe UAE Labour Law makes no specific reference to termination during pregnancy or maternity leave but an employer is not allowed to make an employee redundant for being pregnant or while they are on maternity leave.

Even if someone is on an unlimited contract, which means they can generally be terminated at any time, there still must be a valid reason. In many cases, this will be for financial reasons or performance issues.

As this is not the case, EC has grounds to register a complaint for arbitrary dismissal at the Ministry of Human Resources and Emiratisation, assuming that she has been working for a mainland company or a free zone that has adopted UAE Labour Law.

The issue of arbitrary dismissal is covered in Article 122 of the Labour Law, which states that “the termination of the employment of the worker by the employer shall be deemed arbitrary should the cause of termination not be related to work ... ”

This is followed by Article 123, which says that “should the worker be arbitrarily dismissed, the competent court may order the employer to pay a compensation to the worker. The court shall assess such compensation, taking into account the type of work and the extent of damage incurred to the worker as well as the duration of employment and after the investigation of the work conditions. In all cases, the amount of compensation shall not exceed the wage of the worker for a period of three months calculated on the basis of the last due wage”.

In this situation, it appears EC has been unfairly terminated and has a good case against the employer.

My contract was terminated by a reputed bank two months ago and I have been chasing them for my compensation. They gave me an “Acceptance of Resignation” letter, in which the terms and conditions showed that I was owed three months’ salary and my gratuity, but they have not responded to my emails since then. I have been told my dues are still being processed. How long can the payment be delayed? I am preparing to leave the UAE and am running short of money. Is there a solution that does not require going to the ministry? CL, Dubai

I would expect a major bank to follow the law and general guidelines and pay money owed to a terminated employee within a reasonable time frame.

There is no mention of when exactly the gratuity and redundancy compensation should be paid but it ought to be paid at the time the visa is cancelled and the professional work relationship ends.

The usual procedure is that an employee is asked to sign paperwork to confirm they have received all their dues before the visa is cancelled, so they should be paid on the last day they are an employee.

There are cases where the employer has financial issues and requests that the dues be paid over a specified time frame, but this should only happen with the employee’s approval.

I would not expect a bank to have a problem in paying one’s salary and benefits. It is unprofessional of them not to reply and explain the cause of the delay.

If the bank is not paying what is owed, the standard course of action is to register a case against them with the ministry.

CL has not explained why she does not want to go to the ministry, but this is the recommended course of action. There will be no cost on her part and as she has already been terminated, there should be no consequences other than to enforce the bank to pay what is owed.

I urge CL to speak to the ministry as she has nothing to lose and she needs to take action to be paid the money she is owed.

Keren Bobker is an independent financial adviser and senior partner with Holborn Assets in Dubai, with more than 25 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