How can filing a complaint with the Ministry of Human Resources and Emiratisation (MOHRE) help in addressing unlawful termination and loan repayment?

By Mohamed Darwish Published: Sept. 5, 2024 Last Updated: Jan. 11, 2025
How can filing a complaint with the Ministry of Human Resources and Emiratisation (MOHRE) help in addressing unlawful termination and loan repayment?

Filing a complaint with the Ministry of Human Resources and Emiratisation (MOHRE) can be a crucial step in resolving issues related to unlawful termination and loan repayment. Here's how MOHRE can assist:

1. Addressing Unlawful Termination

Legal Framework: Under Federal Law No. 33 of 2021 regarding labour relations, specifically Article 47, if an employer terminates an employee without cause, it is considered an unlawful termination. The law provides mechanisms for employees to seek redress in such cases.

Compensation for Unlawful Termination: Article 47 states that if the termination is found to be unjustified, the employee is entitled to compensation. This compensation can be up to three months' salary, calculated based on the last salary received. Filing a complaint with MOHRE initiates an investigation into the circumstances of your termination and can lead to a determination of whether it was unlawful.

Process:

  • Filing the Complaint: You need to submit a complaint to MOHRE detailing the circumstances of your termination.
  • Investigation: MOHRE will investigate the complaint, which may involve reviewing employment records, interviewing both parties and examining any relevant documentation.
  • Resolution: If MOHRE finds that the termination was unlawful, they can order your employer to compensate you as per the provisions of Article 47.

2. Loan Repayment Issues

Interest on Loans: According to the Civil Transactions Law of the UAE, specifically Article 721, charging interest on a loan is not permissible. Therefore, any interest charged on your loan by your employer is not legally enforceable.

Obligation to Repay Principal: Despite the illegality of the interest rate, you are still obligated to repay the principal amount of the loan as per Article 712 of the Civil Transactions Law. However, your financial situation due to the termination can be taken into consideration.

Process:

  • Filing the Complaint: Include details about the loan and the interest rate charged to MOHRE in your complaint.
  • Investigation: MOHRE will review the terms of the loan agreement and determine the legality of the interest charges.
  • Resolution: MOHRE can mediate between you and your employer to restructure the repayment terms of the loan, potentially deferring payments or eliminating the interest charges. 1

3. Combined Resolution

Integrated Approach: By addressing both issues in a single complaint, MOHRE can provide a comprehensive resolution that considers your overall financial and employment situation. This integrated approach ensures that all aspects of your case are considered together, leading to a fairer outcome. 2

Support and Guidance: MOHRE can provide guidance on your rights and obligations under UAE law, helping you navigate the legal complexities involved in both unlawful termination and loan repayment issues. 3

Conclusion

Filing a complaint with MOHRE can significantly assist in resolving issues related to unlawful termination and loan repayment by:

  1. Investigating and determining the legality of your termination.
  2. Ensuring you receive any compensation due for unlawful termination.
  3. Reviewing and potentially restructuring your loan repayment terms, especially concerning any illegal interest charges.

By leveraging MOHRE's resources and legal framework, you can seek a fair resolution that addresses both your employment and financial concerns.

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Mohamed Darwish

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