Introduction
The global pandemic has led to a significant shift in the job market world over. The economic consequences resulting from the pandemic have led to companies making adjustments, including layoffs, to cut down on their costs. However, there have been several concerns from employees worldwide, with regards to their job security in such an uncertain time.
This blog post aims to provide a comprehensive comparison of lay off laws in India and Dubai, detailing the legal requirements and procedures an employer in both jurisdictions must adhere to when laying off an employee.
India
In India, The Industrial Disputes Act 1947 governs the relationship between an employer and his/ her workmen. Under section 2(s) of the Act, a “workman” is a person employed in an industry to do any manual, unskilled, skilled, technical, operational, clerical, or supervisory work for hire or reward, whether the terms of employment be express or implied.
The Act states that an industrial establishment employing more than 100 workmen at the time of a layoff must obtain prior permission from the State Government before laying off any employee. Additionally, the Act mandates that establishments employing less than 100 workmen should provide a 60-day notice to the employee or pay in lieu of such notice. Further, workmen laid off for no fault of their own are entitled to compensation equal to 15 days average pay for every completed year of service.
Dubai
Dubai, on the other hand, takes a slightly different approach to handling layoffs. Under the UAE Labor Law, an employer may terminate an employment contract for a specific reason, including if the employee violates contractual obligations, like absenteeism or breach of trust. An employer may also terminate an employment contract, without providing a specific reason, by giving the employee a notice period ranging from 30 to 90 days, depending on the length of Kttenure.
The law also states that laying off an employee must not discriminate on grounds of gender, race, or religion, and the employee must be compensated for the termination of the contract adequately. Lastly, the employer must also provide the employee with a certificate of service or experience letter, showing the period of employment, designation, and last salary drawn.
Conclusion
In conclusion, it is evident that both India and Dubai, while having similar laws for termination of employment, approach the concept of layoffs slightly differently. India’s Industrial Disputes Act is primarily focused on job security for workmen and is more geared towards protecting employees from unjust employer actions. Dubai’s labor law, on the other hand, puts emphasis on fair practices, including the employee’s right to adequate compensation, irrespective of the reason for layoff.
Irrespective of whether you are an employer or employee, it is imperative to understand the legal requirements surrounding the termination of employment contracts in the respective countries, as non-compliance can lead to significant legal implications.
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