Coronavirus impact: Employee sacked during probation period not entitled to allowances in UAE

The date on your termination letter is supposed to be the date on which you received an official email pertaining to your redundancy.

Q-I am employed on an employment contract of unlimited duration by a private sector employer incorporated in the emirate of Abu Dhabi, who is operating in the oil and gas industry. I am currently on probation and my employer has intimated me verbally and later by official email that I have been made redundant owing to the current market situation and the Covid-19 pandemic. Before being informed of my redundancy, my employer did not discuss with me to avail of an unpaid leave or about the reduction in my remuneration. Am I entitled to receive housing allowance until I find another employment? Will I get other benefits as an employee? Will the effective date of my termination be the date I was verbally informed of my termination or the date when I received the termination email?
Answer:
It is assumed that you are employed by an employer incorporated in the mainland of the emirate of Abu Dhabi and therefore, the provisions of Federal Law No. (8) of 1980 regulating employment relations in the UAE (the 'Employment Law') shall be applicable and in light of the current Covid-19 pandemic, the Ministerial Resolution No. (279) of 2020 concerning the employment stability in private sector during the period of application of precautionary measures to curb the spread of novel coronavirus (the 'Ministerial Resolution No. 279 of 2020') shall also be applicable.
An employer, who is affected by Covid-19 pandemic and has surfeit of employees, shall register the employee's data in the Virtual Employment Market System of the Ministry of Human Resources and Emiratisation (the MoHRE) to enable their rotation according to the needs of other establishments. Further, the employer shall be required to continue paying an employee's allowances such as housing and other allowances that had been agreed upon between the employer and the employee in the employment contract except for the employee's basic salary until the employee procures the requisite authorisation to work for another employer or until he leaves the UAE. This is in accordance with Article 3 of Ministerial Resolution No. 279 of 2020, which states:
"Establishments affected by the mentioned precautionary measures, which have an excess of non-national employees authorised to work for them, shall register their data in the Virtual Employment Market System to enable their rotation according to the needs of other establishments, provided that their obligations towards these employees remains the same in terms of housing and fulfilling all their entitlements (except basic salary) until they leave the State or to be authorised to work for another establishment."
However, in the instant case, as your employment contract is terminated during the probation period, your employer upon your termination is not obligated to continue paying your housing and other allowances.
Further, owing to the termination of your employment contract during your probation period, you shall not be entitled to receive end of service benefits. This is in accordance with Article 37 of the Employment Law, which states:
"An employee may be engaged on probation for a period not exceeding six months, during which his services may be terminated by the employer without notice or severance pay."
However, if an employee is not the reason for termination of an employment, then the employer may be required to bear the repatriation costs of the employee. This is in accordance with Article 131 of the Employment Law, which states:
"Upon expiry of contract, the employer shall bear the cost of the employee's repatriation to his point of hire or to any other point that was mutually agreed upon.
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Where the reason for the termination of the contract is attributable to the employee, his repatriation shall be at his own expense if he has the means to pay."
Further, the date on your termination letter is supposed to be the date on which you received an official email pertaining to your redundancy.
In view of the foregoing, it may be noted that you may not be entitled to receive any end of service benefits and allowances from your employer. However, you shall be entitled to receive from your employer all pending remuneration up to your last working date and your employer shall bear your repatriation costs. In the event your employer refuses to settle your pending remuneration and bear your repatriation costs, you may consider approaching the MoHRE to file a complaint against your employer.
Know the law
If an employee is not the reason for termination of an employment, then the employer may be required to bear the repatriation costs of the employee.
Ashish Mehta is the founder and Managing Partner of Ashish Mehta & Associates. He is qualified to practise law in Dubai, the United Kingdom and India. 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.