Financial Crisis 

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These days we are receiving many inquiries in respect of the labor matter from our clients. They are different in details but most of them common in one subject which is ‘”I received the termination letter due to financial crisis”.I therefore would like to highlight the fact that termination due to financial crises is not defined by the labor law and this will be consider as an arbitrary dismissalspecially if the employee and employer are involved and obliged by limited contract.

Compensation of arbitrary dismissal is only desecration of the judge however as per the federal labor law of UAE, the employee is entitled to claim 3 months of his salary including his allowance as a compensation.

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