Reader Mails: Termination of Contract-Employee/Employer death, disability…

Termination of Labour Contract

Reader Queries: 21-10-2013

Question 1:Can the employment contract be terminated if the employee or the employer dies?

An employer’s death shall not constitute an end to the labour contract, unless the subject of the contract is related to him personally. However, the employee‟s death or total disability will render the employment contract terminated. A contract of employment may be terminated automatically in circumstances such as death or loss of business of the employer. An employer may terminate the contract when the employee dies before the expiration of the period of employment.

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Question 2: If the worker’s disability is partial, is the employment contract terminated?

The employee’s death or total disability will render the employment contract terminated. Where the employee’s disability is partial and they are able to perform other work more suited to their health conditions, the employer is required to transfer the employee to another role within the company if the employee requests and to pay them wages equal to those paid for similar work.

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Question 3: My contract is a limited contract and the employer dismissed me without a legal reason, am I entitled to compensation for the injustice dismissal?

If the employer dismissed you and revoked the contract without the reasons provided in the article ( 120) of UAE Labour Law , he shall compensate the worker by a pay of three months or the period remained from the contract , whichever is shorter … unless otherwise provided by the contract.

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Question 4: Is the compensation for injustice dismissal calculated on the basic salary or the total salary?

Compensation for injustice dismissal is calculated on the total salary received by the worker According to the article (115) of UAE Labour Law in which it is mentioned the word (remuneration) … and the remuneration is provided for by the labor law, Article (1). (Remuneration):

All payments made to the worker on a yearly, monthly, weekly, daily, hourly, piece work, or production or commission basis. Remuneration shall include raise of living and include as well any grant given to the worker as a reward for his honesty or efficiency if such amounts are provided for in the contract of employment or in the internal regulations of the establishment or have been granted by custom or common practice to such extent that the workers of the establishment regard them as part of their remuneration and not as donations”.