What happens if employer terminates employee without notice?
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My employment contract was terminated without notice. I worked with the company for seven months and they owe me some money. Can I request for all unpaid salaries and for anything extra as I was expecting to stay with the company for two years? BY, Sharjah If an employer terminates the employment of an individual, they must give them notice in accordance with their contract terms and provide a valid reason. This is covered in Article 43, part 1, of the UAE’s Labour Law. “Either party to the employment contract may terminate the contract for any legitimate reason, provided that the other party is
notified in writing and work shall be performed during the notice period agreed upon in the contract, provided that such period is not less than 30 days and not more than 90 days,” the law states. BY is entitled to payment in full for all time worked. The employer should have also abided by the notice period rule. “The party who
did not abide by the notice period shall pay to the other party compensation, which is called notice period allowance, even if the absence of notification does not cause damage to the other party and the compensation shall be equal to the worker’s wage for the full notice period or the remaining part thereof,” according to part 3 of Article 43. BY should be paid for
all days worked and for another 30 days in respect of the notice period, which the employer failed to adhere to. I recommend that he contact the Ministry of Human Resources and Emiratisation (MoHRE) to register a case against the employer for non-payment of money owed and for compensation as per part 3, Article 43 of the Labour Law. The telephone number for the MoHRE is 800 60. BY should find the MoHRE to be supportive as it is clear that he has not been treated properly. I run a small business and am confused about days off for our staff on public holidays. Our company deals with the public, so employees work different days, with two days off a week that are not always the traditional Saturday-Sunday weekend. UAE public holidays often fall on a weekend. While our employees who work those specific days receive a day off to compensate, the others miss out. We have thought about taking our own steps to make it fair. Can we update our company guidance? What does the law say about this? DP, Dubai I am pleased to see that an employer is trying to treat all employees fairly. We need to clarify what the law says about working on a public holiday. The topic of public holidays and who is entitled to which days off can be confusing, so I asked Sarah Brooks, managing director of UAE-based Fikrah HR, which advises small businesses on best HR practices, to clarify the law. “I have been in discussion with the legal team at the Ministry of Human Resources and Emiratisation, specifically in relation to the Eid break, but this applies to all public holidays in the UAE,” Ms Brooks says. “What is important to note is that all official public holidays are just that — a holiday — and this means that if an employee is working on any of these days, they must be paid overtime in accordance with Article 28, clause 2.” If work conditions require employees to work during public holidays, the employer shall compensate them with another day for each day they work during the holiday, according to the clause. Otherwise, the employer can pay them the wage for that day, according to the salary established for normal working days, plus an increase of not less than 50 per cent of the basic wage for that day, the clause says. The same terms apply to any employee who works over the weekend, according to Article 19, clause 4. What this means is that any employee who works during a day that is a public holiday can either be given a day off in lieu or be paid overtime. What day of the week the holiday falls on is irrelevant. These are the minimum requirements as per UAE law, but any employer may exceed this if they wish to do so. “A company can have an internal policy that provides additional days off work, but this should be properly documented and understood by all parties in order to avoid any confusion,” Ms Brooks adds. Keren Bobker is an independent financial adviser and senior partner with Holborn Assets in Dubai, with more than 25 years’ experience. Contact her at . Follow her on Twitter at @FinancialUAE The advice provided in our columns does not constitute legal advice and is provided for information only Updated: May 08, 2022, 5:00 AM End of Employment Procedures & Guidelines in SingaporeSingapore has been moving away from at-will employment. Employers must have a just cause for termination, present the employee with a termination letter and act responsibly and fairly. Usually, the employee serves the notice period agreed on the employment contract, but the employer may also choose to pay in lieu or waive the notice by mutual consent. Valid reasons for dismissal include:
If the employee termination is due to misconduct, there needs to be an inquiry before taking any action. Misconduct includes employment contract breaches, gross misconduct and absence from work for more than two working days without approval. As a general guide, the following should happen:
Following the Employment Act, the employer cannot suspend an employee from work for longer than a week during an inquiry. Otherwise, they will need approval from the Commissioner for Labour. The employer should pay the employee at least half of their salary during the suspension. Note: if employment terms are breached by either the employer or the employee, the party at fault must pay compensation instead of notice. Upon employment termination, employees are entitled to their payslip along with accrued annual leave payments, salary up until their last day, payment in lieu (if applicable) and any other contractual benefits. Employees must be paid on the last day of employment or within three working days (7 days in case of resignation) from the termination date. Foreign employeeTermination of a foreign employee will result in cancellation of their Employment Pass/S Pass within seven days of the employment coming to an end. The cancellation of the primary Pass voids all other passes connected with it and a 30-day short term visit pass will is issued. Unless the foreign employee has received an alternate valid visa, they should not remain in Singapore once their employment has terminated. Tax clearanceAn employer must notify the Inland Revenue Authority of Singapore (IRAS) via Form IR21 about the employment termination of a foreign national (on a working pass) at least one month before their employment ceases. The employer must withhold any payment due to the foreign national until they obtain tax clearance from the IRAS. The Form IR21 is required to facilitate tax clearance by IRAS before the foreign employee leaves Singapore. It is also applicable for a permanent resident employee who intends to leave Singapore for more than three months or permanently after employment ends. For Singapore and Permanent Residents, employers have to notify the CPF Board via CPF contributions indicating the date of resignation. Procedure guidelinesIn the case of poor performance, the employer must document the employee's shortcomings and raise matters with the employee in performance reviews. Employers must begin by carrying out a formal inquiry, then consider issuing the employee with one or more formal warnings or disciplinary action before proceeding with the termination. Only if the employee's conduct does not improve can the employer terminate them. The employer must keep accurate and detailed records of the employee's performance reviews as proof of a just reason for dismissal. The Tripartite Guidelines On Fair Employment Practices require companies to implement a grievance handling mechanism for discrimination complaints. The Tripartite Standard on Grievance Handling sets out the minimum requirements for companies, including:
According to the Grievance Handling Handbook, companies should have at least two appeal levels and must respond to any complaints within three working days. SuspensionIf an employee is suspended for investigation of alleged misconduct, their garden leave's maximum duration is one week, unless the Ministry of Manpower approves a more extended period. If the suspension is disciplinary, following the discovery of a misconduct, its maximum duration is one week. Employers are recommended to reserve a contractual right to require an employee not to attend work (with full pay) to give employers more flexibility in such situations. Unfair Dismissal in SingaporeIf an employee believes they have been wrongfully dismissed, they may make claims against their employer with Tripartite Alliance for Dispute Management (TADM) within one month of last day of employment. Managers and executives can only file a wrongful dismissal claim if they have served their employer for at least six months. If the employer is found guilty, the court might impose the employee's reinstatement, including a payment equivalent to their lost wages or compensation, between SGD 20,000-30,000. Employee protectionEmployers are prohibited from issuing a notice of dismissal to a female employee during her maternity leave, or a notice of dismissal which expires during her maternity leave. Employers are also prohibited from dismissing an employee below the prescribed minimum retirement age of 62 on the grounds of age. Certain exemptions do apply (for example, a person working in Singapore under a work pass would not be protected). Moreover, employees are protected from being wrongfully dismissed for the following reasons:
Redundancy Pay & Entitlement in SingaporeCompanies employing at least ten people must notify the Ministry of Manpower if five or more employees are made redundant within any six months. There is no statutory process for implementing individual redundancies. However, the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment states that the process should be fair and employers should treat affected employees with respect and dignity. They should further inform employees early when considering redundancy. The Advisory also recommends employers to examine alternatives to retrenchment, including:
Employers should give a longer notice period than their contractual obligations to enable employees to adjust to their redundancy and look for other work, but no specific timescale is imposed. Employees who have served the company for at least two years are eligible for retrenchment benefits. Those with less than two years' service could be granted a goodwill ex-gratia payment. The amount depends on what is provided for in the employment contract. If there is no provision, the employer and employee need to negotiate it (usually two weeks to one month salary per year of service) depending on its financial position and the industry). Resignation Procedure in SingaporeEmployees resigning from their job must present their employer with a termination letter, including any notice. Employees can quit at any point, and employers cannot reject a resignation letter. Employees have to serve their required notice or pay compensation to their employer instead of notice. Singapore recognises constructive dismissal, which entails the employee's forced resignation due to the employer's conduct or omission. If the employee can prove their allegations, they are regarded as dismissed or terminated by the employer. Other End of Employment Guidelines in SingaporeNotice periodThe notice period is usually agreed in the employment contract and is typically one month. However, if the notice period is not specified, the following applies:
The notice period includes the day on which notice is given, and public holidays, rest days and non-working days. Employees can use accrued holiday days within the notice period. SeveranceAlthough not mandatory, it is standard practice for employers to pay employees between two weeks' to one month's salary per year of service, if the employee has been with the company for at least two years. |
