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As for alot of people my company are laying people off. However i'm being told different thigs as to what payment i am due. I have not been made redundant as my position still exists. When i was informed of the termination to my contract i was told they can get 3 people to do the job for what they pay me. Quite simply i'm being replaced by cheaper labour. In no emails regarding my termination has any remark been made to the quality of my work or stating any other reason for my termination. A friend has told me that this is a retrenchment and that i should be entitled to a package.

I am getting the 21 days gratutity but have been told this is based on my basic salary and does not include housing or transport allowence, is this correct? A friend who works is Finance seems to think it should be based on my last pay packet regardless of what it contains.

CaptainCaveman wrote:As for alot of people my company are laying people off. However i'm being told different thigs as to what payment i am due. I have not been made redundant as my position still exists. When i was informed of the termination to my contract i was told they can get 3 people to do the job for what they pay me. Quite simply i'm being replaced by cheaper labour. In no emails regarding my termination has any remark been made to the quality of my work or stating any other reason for my termination. A friend has told me that this is a retrenchment and that i should be entitled to a package.

I am getting the 21 days gratutity but have been told this is based on my basic salary and does not include housing or transport allowence, is this correct? A friend who works is Finance seems to think it should be based on my last pay packet regardless of what it contains.

Your 21 days per year served gratuity is based on your basic salary, any allowances that are stated within your package are excluded from the gratuity.
I do not believe that a Company has to give you any reason for terminating your contract. They should however be giving you a Release / No Objection letter so that you will not be banned for 6 months.

CaptainCaveman wrote:As for alot of people my company are laying people off. However i'm being told different thigs as to what payment i am due. I have not been made redundant as my position still exists. When i was informed of the termination to my contract i was told they can get 3 people to do the job for what they pay me. Quite simply i'm being replaced by cheaper labour. In no emails regarding my termination has any remark been made to the quality of my work or stating any other reason for my termination. A friend has told me that this is a retrenchment and that i should be entitled to a package.

I am getting the 21 days gratutity but have been told this is based on my basic salary and does not include housing or transport allowence, is this correct? A friend who works is Finance seems to think it should be based on my last pay packet regardless of what it contains.

If its an issue over the salary and they need the position but cant afford you - why dont you negotiate for something lower and keep the job. There is a shortfall of jobs and very few companies are hiring in the market. A job, although with lower pay is better than sitting jobless at home.

Same thing happened to some of my friends in a real estate firm. On Jan 29, they were told they were fired and that was their last working day. They have come to know that they will get gratuity based on basic but as compensation for the sudden firing are getting 3 months pay.

You can take it to court. Without taking names, several years ago, an American consultant was sued by an employee for firing him without any reason. Well - they were not happy with his performance but there was nothing to back it in writing, no warning letters, emails, etc. So he had a point and was confident of winning the case. They finalyl settled it out of court in his favour.

Negotiate yes but their proposing over a 50% pay cut and i just can't afford to work for that much. Also i'm not happy that i was told that no-one in the deparment was getting a bonus this year later to find out that its actually just the people getting laid off that weren't getting one.

is this allowed, basically the managers sitting down and saying why the hell should we give a bonus to people were laying off and thats the only reason.

I joined my present employer on 30 June 2004. Following are the detail of my contract:
First Contract period 30 June 2004 to 29 June 2005.
Second Contract period 30 June 2005 to 29 June 2006.
Third Contract period 30 June 2006 to 29 June 2007.
Fourth Contract period 30 June 2007 to 29 June 2009.

Please note that none of subsequent contracts has any reference to previous contracts. All were limited period contracts.

On 22 April 2009 following email message was received form employer as termination of employment/contract (This message was given before expiry of the last contract to both Finance Staff, Finance and Administration Manager and Finance Officer)

"That all positions in Finance department will be re-advertised. This change is in line with revisions of existing job descriptions referring to workload there will be three positions, i.e. Finance Manager, Finance Officer and Finance Assistant. You are we welcome to apply for them although salary scale and packages will be realigned in accordance with job duties and responsibilities".

(Before this, there were only two positions in Finance department Finance and Administration Manager and Finance Officer).

JOB Add was placed in New Paper (Gulf News) through Recruitment Company and many CVs were received from them.

On May 04, 2009 I submitted my fresh CV.

On May 25 2009, short listed 05 candidates were interviewed. To take these interview specially one finance related person came from Head Office.

On May 26, 2009 Employer informed me verbally that interview panel has decided to offer me this new position of Finance Manager (Previously Finance & Administration Manager with about 33% less salary). Which I accepted verbally.

On June 24, 2009 formal appointed letter was given to me for the new position of Finance Manager with revised salary and Job Description. New Contract period from 30 June 2009 to 31 Dec 2009. (For six month only. Again Limited contract). Please note there is no reference of my previous contracts and neither it say that this appointment is continuing of previous employment.

Now, in my final settlement in addition to Gratuity, am I entitle to receive compensation as stated in the Article 115 of the UAE Labour Law. (That is from termination notice date date 22 April 2009 to the end of last contract date 30 June 2009).
Please let me know if you need any further information.

Of course you should still get a bonus, you did the work so are therefore entitiled to it!

I'd say you probably have a case for the labour department, why don't you give them a call and tell them your issues.

Sadly companies are changing their rules and making things up as they go along, and the people who come off worse are people like you.