Can You Claim Compensation for Unfair Dismissal after a Salary Cut?

Article 25 of the labor law states that no amount may be deducted from a worker’s wages except in cases specified by law. This means that the worker has the right to request compensation for arbitrary dismissal, and the court will determine whether the employer’s actions fall under one of the reasons for illegitimate termination of the worker’s service as specified in Article 46.

According to Clause 1 of Article 25, if it is proven that the termination was unlawful, the employer is required to pay fair compensation to the worker, as determined by the competent court. This compensation will take into consideration the type of work performed and the amount of damage caused to the worker, as well as the length of their service. The amount of compensation should not exceed the worker’s wages for a period of three months, calculated based on their last salary.

Clause 2 of Article 25 does not affect the worker’s right to receive notice period allowance and end of service benefits, in accordance with the relevant provisions.

It is important to note that the right to claim compensation for unlawful termination is subject to a one-year statute of limitations. This means that if one year has passed from the due date of the right, neither party can make a claim. However, if there is a written agreement between the worker and the employer regarding commission for the last year of work, or if the commission was part of the worker’s salary and was consistently provided by the employer, the worker may still have the right to request it.

In summary, the labor law protects workers from arbitrary dismissal and provides them with the right to request compensation if the termination of their service is deemed unlawful by the court. The compensation should take into account the type of work performed, the length of service, and the amount of damage caused to the worker. The right to claim compensation is subject to a one-year statute of limitations, but there are exceptions for commission payments if there is a written agreement or if the commission was part of the worker’s salary.

WRONGFULLY TERMINATED IN THE UAE?

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