What Qualifies As Arbitrary Termination?

In this case the Court of Cassation held that an employer has the right, while organizing his business, to take restructuring measures as long as those measures do not breach employment contracts or compel employees to perform work which attracts a lower salary, compromises the employees' ethics or places the employee in a less prestigious position.

Claim

A labor action was filed by an Employee (the "Claimant") against a local company (the "Defendant"). The Claimant requested the court to order the Defendant to pay him compensation in the amount of AED 475,463.35 plus interest.

The Claimant's case was that she had joined the Defendant Company on 23 June 2004 after signing an unlimited term contract with a basic salary amounting to AED 52,479. The Claimant submitted that she had remained employed until 3 August 2008 when the Defendant forced her to submit her resignation after insulting and humiliating her by removing her from her office and re-locating