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An Important Question on Behalf of a Friend.

ChiggyWiggy19268

406

Posts

EW EXPLORER

Latest post on 10 January 2011 - 11:12

A friend of mine is going through a difficult phase. She's tried to sign up for this forum but hasn't been registered. So I have a question on her behalf.

She and her husband are working in a similar field of interest but for different companies. A week ago, her husband recieved termination notice in an email because of conflicting interests of his company with the firm where his wife worked. Turns out that their companies were competitors in certain projects. Now neither the husband nor the wife are at a position where they would have access to the confidential information. So the chances of husband being a mole for the wife's company are absolutely ZILCH. But still he's been issued a notice to serve the notice period and leave the company without any proper reason and simply citing the statement "conflict of interest". And they have many loans taken from the company which actually got deducted from the salary when the husband was working but now they are in a fix about how they would manage on all the loans they had taken from the company.
Now the questions are...

1) Is it justified to sack the husband just because wife works for a rival company?
2) What are their rights in this case?
3) The husband's company doesn't want to reason at all citing reasons of lost trust and all. Is there any compensation when the company breaks the contract and terminates an employee?
4) What happens to the pending loans? How can they negotiate to solve it considering husband has only 2 months to serve the notice period and the loan's far bigger than the monthly salary.
5) Any good lawyer who knows the labor law well and could guide the couple on what should be done next?

TIA on behalf of my friend..
xx

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8

Posts

EW NEWBIE

Latest post on 10 January 2011 - 13:36

As I mentioned, if all these clauses are not lodged with the MoL when the contract is, they are not valid. DH had a 10 page addendum with all kinds of escape clauses/buyout clauses/NDA's etc. Even the terms of a buyout of the contract for either party. Fotunately, the company was too daft to file it, and DH did not know the law so he did not file it. Fortunately, the court took the existing contract that was filed and we he won the case. The MoL would not even look at the addendum in the arbitration stage as it was not filed with the labor contract. Keep in mind, there are about 4 lines to write on the back of the contract, English is not that important but it MUST be in Arabic. If it is not on the page, it didn't happen/does not apply. This fellow would certainly know if a sidebar contract was filed.

gleekfamily24043

481

Posts

EW EXPLORER

Latest post on 10 January 2011 - 13:24

@Cyclone T CW has answered saying no clause exists in either of their contracts. Ooops I didn't read that. Very strange for a European company however. I agree...especially if there is any sensitive information to be had or if they plan on using it as a reason to terminate! It might be that higher ups are scrambling to find an excuse as to why they are losing business, and scapegoats are harder to find than mistakes in their own management of the business. :(

1579

Posts

EW EXPERT

Latest post on 10 January 2011 - 13:19

@Cyclone T CW has answered saying no clause exists in either of their contracts. Ooops I didn't read that. Very strange for a European company however.

gleekfamily24043

481

Posts

EW EXPLORER

Latest post on 10 January 2011 - 13:11

@Cyclone T I agree (and it's also my experience), which is why I posed the question. CW has answered saying no clause exists in either of their contracts. And yes, it doesn't matter what positions the people hold...some companies make you sign NDAs/non-competes/full disclosures for ALL positions within a company.

1579

Posts

EW EXPERT

Latest post on 10 January 2011 - 13:05

I disagree, Cyclone T. People's circumstances change, especially if it is a broad scope of employment, say working in a hotel or something. I could see if he was the MD of the Sheraton and she was MD of Rotana, but if he is a chef and she is in housekeeping (first examples I could think of), it is of no consequence. It sounds to me that they are trying to sqeeze him out plain and simple. As CW said, the people in question are not in a position for conflict of interest, so would not be worth mentioning. Also, how can you fire something for what they MAY do? Dh's contract had a non-disclosure agreement attached, but that has to be taken at face value. If I got a job at a rival firm, he could not be fired unless they could show breach of contract. I agree they sound like they are using this as an excuse to get rid of him however it is possible that it may be valid. I know that my current and at least one of my past contracts requires me to disclose share purchases, financial investment, work without fee and any family employment known to me within (insert range of business areas) globally. If he has something similar in his contract then the non disclosure of the information itself would constitute the contract breach. It wont be a matter of dismissal for something he [u'>might[/u'> do it will be for something he [u'>hasn't[/u'> done. He hasn't disclosed. Saying but she works in accounts and not in tender management (example) would not be a valid argument [u'>if [/u'>there is such a contractual requirement. CW I would get him to check this on the offchance.

2222

Posts

EW EXPERT

Latest post on 10 January 2011 - 12:37

Thanks. Would you know anyone who knows the labor law well, who could help this couple? The best thing to do is call Ministry of Labor 800-665. They know what they are talking about. Get the labor card, contract and all paperwork together. Also write down down dates (when he started, day he got email, amount of leave taken, etc. ) The MoL will advise based on the facts. Barring that, let me know. DH took his case all the way to Supreme Court and won. He knows lawyers, the Labor Law inside-and-out as well as the people through various stages of the process. Instead of going through the MOL, could they speak to the lawyers first? Could you/your DH pass me the number for any good lawyers you may know of ?? It might help them because they don't want to jeopardise their current position by directly approaching the MoL You can talk to the lawyers at MOL without lodging a formal complaint - the MOL will only contact the employees when a formal complaint if filed..... so best go there for free legal advice.

8

Posts

EW NEWBIE

Latest post on 10 January 2011 - 12:35

I disagree, Cyclone T. People's circumstances change, especially if it is a broad scope of employment, say working in a hotel or something. I could see if he was the MD of the Sheraton and she was MD of Rotana, but if he is a chef and she is in housekeeping (first examples I could think of), it is of no consequence. It sounds to me that they are trying to sqeeze him out plain and simple. As CW said, the people in question are not in a position for conflict of interest, so would not be worth mentioning. Also, how can you fire something for what they MAY do? Dh's contract had a non-disclosure agreement attached, but that has to be taken at face value. If I got a job at a rival firm, he could not be fired unless they could show breach of contract. CW, you do not have to mention the company's nor your name to MoL, just the facts. Unfortunately, the lawyers need to get paid for their time. A consultant is 1000 AED per hour, MoL is free! No point in paying for a consultant or lawyer if the MoL says he does not have a case.

1579

Posts

EW EXPERT

Latest post on 10 January 2011 - 12:10

HOWEVER, the labor law of the UAE still apply as far as notice period and and dismissal procedures. "Conflict of Interest", etc. unless proven, is not a dismissable offence. This is true however not disclosing a possible conflict of interest [u'>is[/u'> an allowable ground for dismissal. Did he sign a NOC when his wife accepted employment and did he advise his Manager when this occurred? If he did not, regardless of what he or she has access to, it is my understanding that they are within their rights.

ChiggyWiggy19268

406

Posts

EW EXPLORER

Latest post on 10 January 2011 - 12:08

Thanks. Would you know anyone who knows the labor law well, who could help this couple? The best thing to do is call Ministry of Labor 800-665. They know what they are talking about. Get the labor card, contract and all paperwork together. Also write down down dates (when he started, day he got email, amount of leave taken, etc. ) The MoL will advise based on the facts. Barring that, let me know. DH took his case all the way to Supreme Court and won. He knows lawyers, the Labor Law inside-and-out as well as the people through various stages of the process. Instead of going through the MOL, could they speak to the lawyers first? Could you/your DH pass me the number for any good lawyers you may know of ?? It might help them because they don't want to jeopardise their current position by directly approaching the MoL

8

Posts

EW NEWBIE

Latest post on 10 January 2011 - 11:54

Thanks. Would you know anyone who knows the labor law well, who could help this couple? The best thing to do is call Ministry of Labor 800-665. They know what they are talking about. Get the labor card, contract and all paperwork together. Also write down down dates (when he started, day he got email, amount of leave taken, etc. ) The MoL will advise based on the facts. Barring that, let me know. DH took his case all the way to Supreme Court and won. He knows lawyers, the Labor Law inside-and-out as well as the people through various stages of the process.

2222

Posts

EW EXPERT

Latest post on 10 January 2011 - 11:46

Thanks. Would you know anyone who knows the labor law well, who could help this couple? call teh ministry of labour - they will have their labour contracts on file and they have labour lawyers who will advise...

ChiggyWiggy19268

406

Posts

EW EXPLORER

Latest post on 10 January 2011 - 11:45

Thanks. Would you know anyone who knows the labor law well, who could help this couple?

8

Posts

EW NEWBIE

Latest post on 10 January 2011 - 11:43

Its a freezone in the newer part of dubai. None of those that you mentioned and I can't mention it here in this forum. The husband doesn't work for a govt. entity. Its a private company Well, if it is TECOM or any of the others in the area, they have their own laws, rules, etc. HOWEVER, the labor law of the UAE still apply as far as notice period and and dismissal procedures. "Conflict of Interest", etc. unless proven, is not a dismissable offence. That is like saying 'we think he/she might steal something". Unfounded accusation, and not dismissable terms. Also, if this man is so untrustworthy, why would he be on a 2 month notice period? Notice period is 1 month by law.(30 days). Conflict of interest clauses usually apply AFTER an employee has left the employer, and ONLY IF it is written in Arabic on the Labor Contract (those multi-paged addendums that are often pored over are not worth the paper they are written on unless filed with the Government contract. Ever.) If worse-comes-to-worse, he can always file a complaint with the MoL. It is very clearly written in the law that any employee who is terminated for bringing a case against to the ministry will automatically be awarded compensation and the company found guilty of unfair dismissal. Beleive me, it is worth fighting for your rights. Of course, intelligent discussion is the first way to go, but barring that, there are procedures in place.

ChiggyWiggy19268

406

Posts

EW EXPLORER

Latest post on 10 January 2011 - 11:36

Is there a "disclosure" or "conflict of interest" clause in either of their contracts? None..whatsoever !! Infact, the company policies don't even mention if the spouse can work for a rival firm or not !

gleekfamily24043

481

Posts

EW EXPLORER

Latest post on 10 January 2011 - 11:29

Is there a "disclosure" or "conflict of interest" clause in either of their contracts? My, my aren't companies getting paranoid with the whole wikileaks situation!

ChiggyWiggy19268

406

Posts

EW EXPLORER

Latest post on 10 January 2011 - 11:29

First and foremost...what Freezone is it? Also, does the husband work for a government entity? (Dubai World, Dubai Properties, Nakheel, etc.) This makes a big difference in the course of action. Its a freezone in the newer part of dubai. None of those that you mentioned and I can't mention it here in this forum. The husband doesn't work for a govt. entity. Its a private company

8

Posts

EW NEWBIE

Latest post on 10 January 2011 - 11:28

First and foremost...what Freezone is it? Also, does the husband work for a government entity? (Dubai World, Dubai Properties, Nakheel, etc.) This makes a big difference in the course of action.

ChiggyWiggy19268

406

Posts

EW EXPLORER

Latest post on 10 January 2011 - 11:25

Goodness! That is worrying actually as my DH and I work in the same field for opposing companies...mmm would love to know where that poor man actually stands! Although like Sue62 said, it would be better if I were to lose my job than my husband lose his as our housing etc is all through him. He must have some rights surely! Surely they can't just fire him without any real proof or reason? Exactly... They have no proofs except mere doubts just because the company has been losing contracts lately to all the other rivals. And plus, this guy is not even in a position to know or access any information.He's not one of the guys of the management or any department that has confidential information.

247

Posts

EW NEWBIE

Latest post on 10 January 2011 - 11:21

Not wishing to appear sexist but if the wife is on a lower salary could she offer to leave her job instead ? The wife is on a lower salary and the husband even told the higher ups in his company that his wife could leave the job and go back home to the family, but his boss told him that all trust was lost and that even asking his wife not to work wouldn't help. The wife had to work because they were facing financial issues and his company had not given him a raise since quite sometime. Izzy99-- It wasn't a limited contract. He was on company's visa (Free Zone) and unlimited contract. It sounds like the company think he HAS passed on information to her/her company.

247

Posts

EW NEWBIE

Latest post on 10 January 2011 - 11:20

Goodness! That is worrying actually as my DH and I work in the same field for opposing companies...mmm would love to know where that poor man actually stands! Although like Sue62 said, it would be better if I were to lose my job than my husband lose his as our housing etc is all through him. He must have some rights surely! Surely they can't just fire him without any real proof or reason?

ChiggyWiggy19268

406

Posts

EW EXPLORER

Latest post on 10 January 2011 - 11:19

Not wishing to appear sexist but if the wife is on a lower salary could she offer to leave her job instead ? The wife is on a lower salary and the husband even told the higher ups in his company that his wife could leave the job and go back home to the family, but his boss told him that all trust was lost and that even asking his wife not to work wouldn't help. The wife had to work because they were facing financial issues and his company had not given him a raise since quite sometime. Izzy99-- It wasn't a limited contract. He was on company's visa (Free Zone) and unlimited contract.

78

Posts

EW NEWBIE

Latest post on 10 January 2011 - 11:17

Not wishing to appear sexist but if the wife is on a lower salary could she offer to leave her job instead ? This crossed my mind too

3901

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EW MASTER

Latest post on 10 January 2011 - 11:16

Not wishing to appear sexist but if the wife is on a lower salary could she offer to leave her job instead ?

2222

Posts

EW EXPERT

Latest post on 10 January 2011 - 11:14

If he is on an unlimited contract, there is nothing he can do - if it's a limited contract he should contact the MoL ASAP.

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