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Employee entitled to 3-month 
salary if arbitrarily terminated

I was working in a company since 1988 under the designation of divisional manager on unlimited contract. I was terminated without any valid reason.

The company handed me a one-month notice on February 28. I have till date received neither compensation nor communication from the company on my end of service benefits and cancellation of visa. I have e-mailed them at least five times on the same issue, but received no response. I would like to know what I have to do to get my settlements as soon as possible.

Am I entitled to receive the salary for the months that they have not settled in my case being for March, April and May until now or till they settle my dues?

If your company is not ready to cancel your visa and settle your dues, you may file a complaint with the Labour Department and seek remedy. You will be entitled to salary for the month of March as it falls within the notice period. You will not be entitled for salary for the rest of the months as you did not work during those months. If your termination is arbitrary, you will be entitled to compensation equal to three months salary.

Labour ban?

I joined my company here in August 2009 on an Archives Clerk visa because I did not have enough time to get my MBA degree certificate attested. Recently, I converted my visa to a professional visa. I am now on the visa of a personnel manager. I would be completing two years this month. I want to know if I would I be liable to labour ban if I decided to resign next year.

In your letter you have mentioned that you are a personnel manager having professional visa. In that case you may check with the Labour Department whether your profession comes under the category which is exempted from ban.

Confidentiality undertaking

I have been working on an unlimited contract since 1995. I resigned to join a competitor as a managing director. Currently I am employed as a manager responsible for installation of lifts. This is only one part of the business, the others being sales, finance, HR and after sales service where each has a different manager. The contract is a standard contract without a non-competition clause. The company attorney verbally told me that I shall have to sign a confidentiality undertaking before my dues are released. Please advise whether I am required to sign such a document because if I sign it, I would not be able to function in the new company.

In this case I would advice you that you may not sign such a confidentiality undertaking as you have already resigned. In case your company is not settling your dues without signing the confidentiality undertaking, you may file a complaint with the Labour Department and seek remedy.

Compiled by Ahmed Shaaban

KK Sarachandra Bose is a Partner/Corporate, Commercial and Contract Lawyer at Dar Al Adalah Advocates and Legal Consultants. Readers may e-mail their questions to: news@khaleejtimes.com or send them to (Legal View), Khaleej Times, Dubai PO Box 11243.