Salary default for two months voids contract

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Salary default for two months voids contract

If you are not paid salary for the last two months, your contract with your employer is terminated automatically.

By Ashish Mehta

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Published: Sun 20 Nov 2016, 9:42 PM

Last updated: Mon 21 Nov 2016, 10:33 AM

I came to the UAE in May 2016 on an employment visa with a cleaning service company. There was another man with me. My partner got his Emirates ID issued after three months, but till date I have not received mine. When I asked my employer regarding the same, he told me the company would take care of it and that I needn't worry. Moreover, for last two months, we haven't had many customers and have not received our salaries, either. Our boss has now told us we can look for a job outside if we want. I asked him about my status, but he refused to talk to me. What should I do? Am I living in the UAE illegally? Should I go to the labour court or police station to file a complaint?
Pursuant to your queries, we assume that your residence visa is not stamped on your passport considering the fact that you have not yet received your Emirates ID. It is the responsibility of the employer in the UAE to make necessary arrangements to get its employees' visa stamped on the passport upon completion of medical examination by the health authority and upon applying for UAE Resident ID (obtaining biometrics of the employee) with the Emirates Identity Authority. The stamping of employment visa on the employee's passport should be processed within 60 days of entry to the UAE on employment visa. Since you arrived on an employment visa, you are entitled to receive salary from your employer.
Since you are not paid salary for the last two months, your contract with your employer is terminated automatically if you file a complaint with Ministry of Human Resources and Emiratisation. This is in accordance with Article 2 of the Ministerial Decree No. 765 of 2015 on Rules and Conditions for the Termination of Employment Relations. It states: "An employment relation is considered to have de facto ended if any of the following instances occurs:
1. It is duly established that the employer has failed to meet contractual or legal obligations to the employee (as in, but not limited to, the non-payment of salary for a period exceeding 60 days)
2. The employee has filed a court complaint against an employer who failed to secure employment of the employee as a result of the shutting down of the employer's business, in which case a report by Labour Inspection attesting to the fact that the business has been inactive for a period exceeding two months must be obtained and the employee must have reported to the ministry during this period.
3. A labour complaint is referred to the court by the ministry and a final ruling is obtained in favour of the employee stating that the employee is entitled to not less than two months' wages or to indemnification for arbitrary firing or early termination of a fixed term contract, or any other benefits denied to him by the employer for no lawful reason or the including the end of service benefit."
If your residence visa is not stamped on the passport, your employer should be liable to the authorities. Pursuant to the aforesaid, you are advised to approach the Ministry of Human Resources and Emiratisation and file a complaint. 
Overtime pay must for non-managerial roles
I am working as an accountant on unlimited contract with a company from July 2013. Now,  HR department sent me a termination letter, in which it is mentioned "termination due to redundancy" and a one-month notice period. I want to know: (a) Since October 2015, my duty timings were 8am to 6.30pm - which is more than my eight-hour work requirements. Can I ask for a full year's overtime?
(b) Will the company pay three months' salary or just one?
Pursuant to your queries we advise you as below:
(a)  Remuneration for overtime: You are entitled for overtime remuneration in case your designation is not a manager or supervisor as laid down by Article 72 (1) of the Federal Law No. 8 of 1980 regulating Employment Relations in the UAE (the "Employment Law"). However, if you do not fall under the category of manager or supervisor, you are entitled to overtime remuneration as mentioned in Article 67 of the Employment Law which states: "Where the circumstances of the work require an employee to work more than the normal number of hours, any period worked in excess shall be treated as overtime, for which the worker shall receive remuneration equal to that corresponding to his normal hours of work, plus a supplement of at least 25 per cent of the remuneration." But, you should have documentary evidence with you to prove you worked for more than eight hours per day during the course of your employment.
(b) Termination entitlements: Since your employer has terminated your employment with a one-month notice period this termination may be considered as arbitrary dismissal. This is in accordance with Article 122 of Employment Law which states: "An employee's service shall be deemed to have been arbitrarily terminated by his employer if the reason for the termination is irrelevant to the worker and, more particularly, if the reason is that the employee has submitted a serious complaint to the competent authorities or has instituted legal proceedings against the employer that has proved to be valid."
In continuance, you may claim up to three months of remuneration from your employer in accordance with Article 123(a) of the Employment Law which reads: "Where an employee is arbitrarily dismissed, the competent court may order the employer to pay compensation. The court shall assess such compensation with due regard to nature of the work, the amount of prejudice he has sustained and his period of service, and after investigating the circumstances of the work. The amount of the compensation shall in no case exceed the employee's remuneration for three months calculated on the basis of his last remuneration."
Further, unlimited contract can be terminated by both employer and employee by serving 30 days of notice with a valid reason as stated in Article 117 (1) of the Employment Law. 
Ashish Mehta is the founder and Managing Partner of Ashish Mehta & Associates. He is qualified to practise law in Dubai, the United King. Full details of his firm on: www.amalawyers.com. Readers may e-mail their questions to: news@khaleejtimes.com or send them to Legal View, Khaleej Times, PO Box 11243, Dubai. 


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