What is Redundancy / Reduces Workforce in UAE?

What is Redundancy?

The term Redundancy is used when an employer reduces a workforce in the company due to one of the following:

Pandemic: Due to recent pandemic

Workplace Closure: where in an employer is ceasing or intend to cease the business. The place where the employee is employed.

Reduced Requirement: Due to low volume of business, the employer shall reduce the workforce.

Business Closure: where an employer plans to close the business on account of loss, or any other reason which is justified.

In these above reasons, the most legal issues arise, because there be often be judgment made by the employer as to who to keep and who to let go, and those judgments need to be made fairly.

What if, if Your Role is “at Risk” of Redundancy

If incase the employer has offered any settlement agreement, you have right to seek legal advice. In case the employer forced or pressurized you to accept it, and of course this is not only a legal requirement but will also ensure that you reach an agreement which is beneficial to you and tailored to your needs. You are advised to contact legal consultant for further information.

If incase the employer has not offered any settlement agreement, its vital that the employee facing such situation, must know the prospects of redundancy and also be aware of his rights and the procedure concerning the same.

Your Obligations

It depends on both the length of the term you have worked for your employer and as per the employment contract, you can seek the legal consultant who can guide you further.

If you are arbitrarily dismissed or terminated on the ground of redundancy whether your contract is limited or unlimited, or your company is in mainland or free zone, whether the company is semi-governmental or governmental organization, our experts in human resources and legal consultants, who are well versed with the UAE’s relevant laws, can provide you the right advices and guidance.


As per federal law, Article 122 of the UAE labour Law, if the reason for termination is irrelevant to work, and as per Article 117 of the same law, states that the term of employment may be terminated by giving a proper notice with valid reason. As per this, the termination of such, even if it is on the ground of a valid reason must be compensated by providing three months’ salary to the terminated employee.

Also, the Employee having spent one year or more in service continuously shall be entitled to an end of service gratuity upon the termination of his service, along with other benefits provided on the labour contract, also eligible to get the accrued days of annual leave that has not been taken, and notice period salary mentioned on the labour contract and an air ticket to his home country. This amount has to be paid at the time of final salary payment, or whatever negotiated.

Process for the Legal Action

If the employee believes that he has been dismissed illegally, the employee can complain to Ministry of Human Resources and Emiratisation, by their website Mohre.gove.ae at 80060. (A toll-free labour dispute hotline)

In the initial stage, the complaint is investigated by the Tawafuq center, and they try to contact both the parties to solve the issue amicably, by providing the legal parameters and rights of the employee. If it is not sorted out, immediately the complaint is referred to the respective labour court.

Once the case is filed in the court, court uses to assess the eligibility of the employee from the company in terms of gratuity, bonus, unused leave salary, overtime, notice period salary and the compensation the employee deserves by going through the credentials and rule a judgement.

Tasheel Legal Consultancy can help you for any legal requirements related to Redundancy / Job Termination / Reduces Workforce  in UAE including all the emirates Dubai, Abu Dhabi, Sharjah, Ajman, Fujairah, RAK and Umm al Quwain.

Call us: +97165363791 | +971 501750107 | +971 501758799