What to Do If You're Being Made Redundant in the UAE
Being told that you’re being made redundant is awful. Whether the decision is due to economic changes, company restructuring, or downsizing, it can feel overwhelming. However, the situation can be managed with the right knowledge, and support. Understanding your rights and following the correct steps can help you navigate this challenging time with confidence.
Here’s what you need to know.
1. Take Time to Process the News
Your initial reaction may be emotional—anger, frustration, fear—but it’s important to remain calm and composed. Redundancy is almost always a business decision and not a reflection of your abilities or performance. Once you’ve had time to process the news, schedule a follow-up meeting with HR to get clarity on your package and the next steps.
2. Understand Your Entitlements in the UAE
The UAE has specific legal provisions to protect employees who are made redundant. Under Federal Decree Law No. 33 of 2021 (UAE Labor Law), you are entitled to certain benefits, regardless of the reason for your redundancy. These include:
End of Service Gratuity: If you’ve been with your employer for more than one year, you are entitled to an end-of-service gratuity. The amount is based on your basic salary and length of service:
21 days' basic salary for each year of service for the first five years.
30 days' basic salary for each additional year after five years.
The total gratuity is capped at two years' salary.
Notice Period: Employers must provide at least 30 days' notice of termination or pay in lieu of notice. In some cases, your contract may specify a longer notice period.
Unused Leave Compensation: You are entitled to be paid for any accrued but unused annual leave.
Repatriation Costs: If you are on a UAE employment visa, your employer must pay for your return flight to your home country, unless you transfer your visa to a new employer.
3. Know Your Legal Rights
Redundancy in the UAE is regulated by labor law, which means that employers must follow a fair process when making employees redundant. Employers must have a legitimate business reason for redundancy, such as financial difficulties or the closure of a department.
If you believe you’ve been unfairly selected for redundancy or that the process was not followed correctly, you have the right to challenge it. The Ministry of Human Resources and Emiratisation (MOHRE) offers a complaints procedure for workers who feel they’ve been treated unfairly. In some cases, you may also be eligible for compensation for unfair dismissal.
4. Seek Legal and Financial Advice
Navigating redundancy can be legally complex, especially if you have concerns about the fairness of the process or the calculation of your entitlements. Seeking advice from an employment lawyer in the UAE can help ensure you are receiving everything you’re entitled to, from severance pay to repatriation costs.
It’s also a good idea to consult with a financial advisor. They can help you manage your finances during the transition, especially if you’re relying on your end-of-service gratuity or seeking to plan out your job search period.
5. Update Your CV and LinkedIn Profile
After receiving notice of redundancy, focus on updating your CV and LinkedIn profile. Make sure your most recent achievements are reflected and that your profile is professional and up to date. LinkedIn is a powerful tool in the UAE job market, and a polished profile can open doors to new opportunities (check out our article on how to improve your LinkedIn presence: https://www.collins-search.com/blog/how-to-use-linkedin-to-boost-your-job-search?rq=linkedin%20).
You should also let your professional network know that you are available for new opportunities. Recruitment agencies are essential players in the UAE’s job market, and reaching out to specialized agencies—such as those focusing on legal, compliance, or specific industry sectors—can help you find both temporary and permanent roles.
6. Consider Temporary and Contract Roles
In the UAE, temporary and contract-based roles are becoming increasingly common. If you’re facing redundancy, exploring these options can be a great way to bridge the gap while looking for a permanent position. Temporary roles often come with flexible work arrangements and can be an excellent way to build connections with employers who may later offer full-time positions.
Agencies like Collins Search, which specialize in legal and compliance roles, can connect you with short-term projects or temporary positions. Using tools like Collins Search’s video interview software can also streamline the application process, allowing employers to evaluate you quickly for these roles.
7. Ensure Visa and Benefits Are Handled Correctly
One of the key aspects of redundancy for expatriates in the UAE is the handling of your residency visa. Your visa is tied to your employment, and once your contract is terminated, your employer must cancel your visa unless you find another job quickly. Additionally, your employer must cover the cost of your return flight home, as mandated by UAE labor law. If you have a golden visa, then you’re able to remain without work and that is not impacted by redundancy.
It’s essential to work with HR to ensure that your visa and benefits, including health insurance, are handled correctly. If you plan to stay in the UAE and look for another job, discuss the grace period for remaining in the country and what steps you need to take to transfer your visa to a new sponsor.
8. Take Care of Your Well-Being
Redundancy can be emotionally taxing. It’s important to acknowledge the impact it can have on your mental and physical health and take steps to look after yourself during this period. Lean on your support system—friends, family, or colleagues—and don’t hesitate to seek professional support if you feel overwhelmed.
Maintaining a routine, setting job search goals, and staying active can help keep your spirits up and maintain focus on the opportunities ahead.
9. Stay Proactive in Your Job Search
The UAE is a competitive job market, but staying proactive is key. Set daily or weekly goals for your job search—whether it’s reaching out to a certain number of recruiters, applying to specific roles, or networking with industry contacts. Staying active and engaged in the job market will increase your chances of finding new opportunities quickly.
Being flexible and open to new roles, industries, or even short-term projects can help accelerate your transition back into the workforce.
Conclusion
Redundancy can be a difficult experience, but it doesn’t have to be the end of your career journey. By understanding your legal rights under UAE labor law, seeking professional advice, and staying proactive in your job search, you can turn this challenge into an opportunity for growth and reinvention.
Remember, redundancy is just a chapter, not the end of the story. With the right approach, you can find new opportunities and move forward with confidence.