Settlement of legal employment

disputes in the UAE:

The Judicial Procedure &
Alternative Dispute Resolution

HRM 4003
Employee Relations and UAE Labour Law
WEEK 3
 The Judicial Procedure
• How do we deal with disputes in our everyday life?
• What are the possible employment-related conflicts at an
organization?
• What is the process and who are those dealing with
unresolved conflicts? As an HR manager, what would you
do?
• The legal way: an independent and reliable 3rd person to
consider circumstances and every important factor
• Keywords: evidence, documentation, witness, deadlines &
fees, hearing, decision (judgment), opportunity to review a
decision by another person (appeal), lawyer, judge,
substantive & procedural law
 The UAE Court Structure
• The Constitutional background: the UAE Constitution
allows each emirate to have its own ‘Legislative Body’
& ‘Judicial Authority’
• Abu Dhabi, Dubai & RAK have their own structure:
Court of First Instance -> Court of Appeal -> Court of
Cassation
• Specialist courts, incl. Labour Courts in Dubai and Abu
Dhabi
• Federal system (the other 4 emirates): Court of First
Instance -> Court of Appeal -> Supreme Court (in Abu
Dhabi!)
 Which System To Turn To?
Depends on the case:
• Who starts the procedure? The PLAINTIFF
• The other party is the DEFENDANT
• The DEFENDANT’s address decides the system
Higher courts:
• Always starting at the lowest level
• The party who appeals is the APPELLANT
• The other party is the APPELLEE
 What To Ask For From The Judge?
• Remember LAW3103 and our discussion on
torts during week 1: “Tortfeasor is liable for
rectifying or paying for the damages”
• Assessing the damages: all costs & moral
damages (if applicable)
• HR conflicts:
- What can be rectified?
- What can be the potential costs?
 Why ADR?
• Developed due to the disadvantages of litigation, ie.
a court procedure is …
- long (it can last for years!),
- expensive (just think of the lawyers’ fees and the
time of employees and managers spent on paperwork,
going to hearings, etc.),
- rigid and very formal (think of the deadlines,
documentation requirements, etc.)
- and always about a WIN – LOSS situation
• Businesses need fast, flexible, preferably
inexpensive and WIN-WIN situations
 Methods of ADR
In the UAE there four methods:
• Informal ADR methods:
1/ Negotiation
2/ Conciliation
3/ Mediation
• Formal ADR method:
4/ Arbitration
 Informal methods
1/ Negotiation: parties come together to discuss
their problem and to find a solution
2/ Conciliation: the conciliator helps the parties
to communicate only
3/ Mediation: the mediator proposes solution
• Advantages: fast, inexpensive, flexible
• Disadvantages: will there be any decision? If
yes, will it be fully followed by the parties?
 Formal method: Arbitration
• Arbitrator is an expert in the field of the
problem of the parties
• Arbitrator is a decision-maker
• Parties should have an arbitration clause in
their contract
• The process is similar to litigation
• Advantages: there will be a binding decision
• Disadvantages: less flexible, less quick and
more expensive than the informal methods
 Labour Dispute Resolution in the UAE

• Employer vs employee dispute

• Any of the parties may turn to the local office
of the Ministry of Labour
• Written application, followed by a hearing
• Ministry makes a recommendation
• Should the party fail to settle the dispute as
recommended by the Ministry, the matter will
then have to be referred to court