Dubai: principle of constructive dismissal recognised by the Court of Cassation

It has been reported that, in a recent case before the Dubai Court of Cassation, the court has recognised that an arbitrary termination may occur where an employee is forced out of employment by his employer changing the terms and conditions of employment to the detriment of the employee.  In the case before the court, the employer hired a new employee to take a more senior role within the company, effectively replacing the complainant and downgrading his role and responsibilities.  Although the complainant's contract of employment was not terminated, he felt he had to resign in the circumstances. 

This case brings into the scope of an "arbitrary termination" under the UAE Labour Law a similar concept to constructive dismissal found in other jurisdictions, where an employee is entitled to terminate his employment contract without notice by virtue of the employer's conduct which amounts to a breach of contract.