No Concept of Unfair Dismissal in the DIFC

Analysis

The DIFC Court of First Instance recently issued two key judgments in the cases of Hana Al Herz and Dubai International Financial Centre Authority [CFI 011/2012] and Marwan Ahmad Lutfi and Dubai International Financial Centre Authority [CFI 003/2012], which both addressed and clarified certain principal issues on the law relating to the termination of employment in the DIFC.

By way of background, Ms Al Herz and Mr Lutfi were both employed and subsequently dismissed by the DIFC Authority (“DIFCA”).  A key factor which impacted on the employees' relationships with the DIFCA and appeared to influence its decision to dismiss the individuals was that Ms Al Herz and Mr Lutfi married on 27 July 2011.  

In particular, given their respective senior positions in the DIFCA, it was determined that a potential conflict of interest had arisen in the workplace pursuant to the marriage and that certain internal policies had been breached.  Both individuals pursued claims again the DIFCA arising out of the termination of their employment and although the claims were heard at separate hearings, both cases were heard before Deputy Chief Justice Sir Anthony Colman.