No compensation for unfair dismissal in the DIFC-but that's not fair
Type
E-journal
Date
30 Sep 2013
Jurisdiction
Dubai International Financial Centre
Taxonomy
Rights & Duties of Employees & Employers, Termination of Employment
Copyright
LexisNexis
Relevant company
Clyde & Co
Legal reference
DIFC Law No. 4/2005, DIFC Law No. 6/2004
Analysis
Since 2009, it has been clear that there is no statutory compensation for unfair dismissal in the Dubai International Financial Centre (DIFC). However, what has been unclear (until quite recently) is whether the right to compensation could arise through other avenues, including a breach of the implied term of mutual trust and confidence, which is an overarching common law doctrine of the law of employment. This issue has been examined in two recent decisions of the DIFC Court of First Instance and it has now become indisputable that there is in fact no compensation for unfair dismissal in the DIFC, either in statute or otherwise. This update looks at how compensation for unfair dismissal has developed in the DIFC.