Legal Question in Employment Law in United Arab Emirates

We hired an employee on probation period of 4 months under unlimited contract. Contract started on specific date & employee joined 2 days later. performance of employee was not satisfactory and we decided to terminate. as pr contract probation period ends on 21st, as per joining letter, it becomes 23rd and we delivered termination letter on 25th. now questions are...

1= does after completion of probation period, if termination is not done neither confirmation letter given, law assumes confirmation automatically?

2=does joining letter has any legal value or date of commencement of contract prevail for calculation of probation period even if joining is late?

3=if employee is considered to be of permanent status automatically, do we need to pay only basic salary or full salary (including allowances??


Asked on 2/06/14, 4:25 am

2 Answers from Attorneys

Fca Prashant Chavan Expert Edge LLP

06.02.2014

Dear Sir / Madam,

1. Yes, if the probation period of 4 months has passed, the employee is deemed to be confirmed in the Company.

2. Since the employee has joined the Company on the 23rd, the employment contract and Salary takes effect from that date.

3. The employee has to be paid salary inclusive of all allowances as specified in his / her Appointment letter for all the days that he / she has worked in the establishment.

Regards,

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Answered on 2/06/14, 4:41 am
Shaji Natarajan Salam Advocates & Legal Consultants

Hi,

From the contents of your mail it is understood that the Contract of the Employee is an unlimited one, which implies that he would not be eligible for other terminal benefits as he had worked for only around 4 months. You have not mentioned the reasons for Termination, which you had stated in your Termination letter served on the Employee and whether the Employee has approached the Labour Department. Under such circumstances am only confining to answering your queries to the point, based on the applicable provisions of the UAE Labour Law.

1) If the Probation period is not extended, it is deemed Confirmation after completion of the Probation period of 4 months.

2) Probation period is calculated from the date of joining of the Employee in the services of the Company.

3) Your this Query is a bit unclear. If your query is regarding the Salary to be paid to the Employee for the days of his Employment in the Company, it would then mean that he would be eligible for his total Salary including his eligible allowances. But then what are the terms of employment and whether after the completion of Probation period the Employee would be eligible for any additional allowances has not been mentioned.

After completion of the Probation period it would be mandatory to comply with the applicable Notice period, etc.

For further clarifications, if any, you may revert by mail to [email protected] or call on 0502104389.

Best Regards,

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Answered on 2/06/14, 6:07 am


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