A recent case illustrates the importance of the terms of employment offer letters. In this case, an offer of employment was made by Gavrilla & Company to Mr Gaspar, subject to Mr Gaspar providing the company with satisfactory references, one of which was required as being from Mr Gaspar’s “last employer”. Mr Gaspar provided references, but the company subsequently discovered that he had not disclosed his actual last position of employment to the company nor had any reference been provided by his actual last employer. The company withdrew its job offer to Mr Gaspar, who responded by claiming significant damages in the DIFC courts on the grounds that the company had acted in breach of contract. The court held that Mr Gaspar’s failure to comply with the conditions set out in the offer letter issued to him by the company meant that there was no valid and binding employment contract between Mr Gaspar and the company. Therefore, it follows that the company could not have acted in breach of contract by withdrawing its job offer to Mr Gaspar.
i) Dubai Law No. 4 of 2016 on Financial Crimes (the Financial Crime Law) is designed to enhance investors’ trust in Dubai. For the fist time, the law includes protections for those that report crimes to the newly established Dubai Centre for Economic Security and therefore may also have a welcome effect in protecting employees from certain forms of whistleblowing. Article 19 of the Financial Crime Law provides for “protection for the reporter”. However, this law is new, its application has not been tested and the Centre has not yet been established. Therefore, many questions pertaining to its scope of protection and application remain uncertain and until it is applied by the authorities, whistleblowers should continue to act with caution in Dubai and elsewhere in the UAE. ii) The Health Authority Abu Dhabi (Haad) announced changes in health insurance coverage, which affect the Thiqa plan for Emiratis, and the Daman insurance’s Abu Dhabi Basic Plan for expats and their families, who seek treatment at private hospitals in Abu Dhabi. These changes came into effect on 1 July 2016.
Several Ministerial Resolutions came into effect on 1 January 2016. These resolutions do not amend the Labour Law and, strictly speaking, only apply to employers under the jurisdiction of the Ministry of Human Resources and Nationalisation (previously, the Ministry of Labour). For employers under the Ministry’s jurisdiction however, they have had a fairly significant impact upon the contractual documentation provided to employees, the provisions relating to termination of employment (particularly of fixed term contracts) and the circumstances in which labour bans will be imposed.
The Dubai Health Insurance Law No. 11 of 2013 introduced a requirement that by the end of June 2016, all employers, regardless of size, must provide a minimum level of health insurance for their employees and all spouses, dependents and domestic workers must have in place such minimum coverage.
A landmark case considered payment where the employment relationship between parties is terminated. The ruling stipulates that: (1) An employer shall pay all wages and any other amount owing to an employee within fourteen (14) days after the employer or employee terminates the employment. (2) If an employer fails to pay wages or any other amount owing to an employee in accordance with Article 18(1), the employer shall pay the employee a penalty equivalent to the last daily wage for each day the employer is in arrears.
Under a new resolution issued earlier this year regarding which permits the employer, in so far as is necessary to safeguard the interest of the employer’s business, to enforce non compete provisions against the employee. To date, enforcement of such provisions has been quite challenging. However pursuant to this resolution, enforcement may now become easier given that the resolution confirms that, where a final court decision is awarded stating that an employee is bound by a contractual agreement not to compete with its employer, the Ministry of Human Resources and Nationalisation (previously, the Ministry of Labour) is entitled to refuse to grant a new work permit (or withdraw an existing work permit) to such individual for the duration of the non compete restriction. How this will be implemented in practice remains to be seen.
Employment Law Across 27 Jurisdictions 2016, an L&E Global and Clyde & Co joint publication, provides a brief outline of the employment law regime across 27 key jurisdictions throughout the globe.
For employers with operations in multiple jurisdictions, litigation over disputes related to employment matters is a very real and increasingly significant concern, which applies to every sector of industry, in every region of the world. This comprehensive publication includes contributions from 28 key jurisdictions across 5 continents and will be a valuable resource for all […]
An International Guide to Employment Law Across 26 Jurisdictions offers analysis on a host of employment law matters, ranging from hiring foreign nationals and business transfers to wages, annual leave and working time.