Termination of Employment in the UAE defines the rules for ending employment, which includes notice periods, benefits, and dispute resolution options. This process helps employers and workers to boost healthy transition relationships in UAE.
Termination of employment in UAE :
The following circumstances allow for the termination of an employee’s employment in the UAE, per Article 42 of Federal Decree Law No. 33 of 2021:
1. If the employer neither renews nor extends the employment contract after its initial term has ended.
2. If both the employer and the employee, mutually agree to end the employment contract.
3. The employer and employee can terminate the employment agreement if they mutually agree upon the terms of the notice period and working conditions.
4. In case the employee dies, their employment contract terminates, and the employer will make the FnF settlement to their family members.
5. In case of the death of the employer the employment contract may come to an end if the contract is related to its entity.
6. When an employee faces a court judgment in not less than a period of three months the employment may come to an end.
7. If the organization or establishment is permanently closed as per UAE Laws and compliances, the employment may come to an end.
8. If the employer becomes bankrupt or insolvent or if the organization faces economic uncertainty the employment may come to an end.
Notice period of Termination
According to Article 43 of the UAE Labour Law, it says that :
1. A formal and written notification is provided to the other party
2. The terminating employee must serve a notice period of either 30 days or 90 days whichever is mutually agreed. Moreover, it can be said that
1. The work should be performed by the employee as per the employment contract during the notice period.
2. In the notice period the worker should be provided with the full wages.
3. If the employee fails to serve the relevant notice period they must pay the notice period allowance according to the last wage received by the worker
4. If by any chance the employer terminates the employment the employee is entitled to an unpaid leave of one day per week during the notice period so that the employee can search for a new job.
Both parties can negotiate or exempt the notice period based on their mutual agreement and discussions.
Termination of employment contract without prior notice by the employer
According to Article 44 of the UAE Labour Law employer may terminate the services of an employee without notice if:
1. The employee submits false or fake documents to the employer.
2. The employee commits a mistake or error that leads to heavy loss for the employer or if the property of the organization is damaged.
3. The instructions regarding the safety of employees and the workplace are violated by the employer.
4. The employee fails to perform his duties and responsibilities mentioned in the contract of employment and violates the same again and again despite repeated warnings.
5. The secrets of trade or organization are leaked by employees to the competitors or any third party for their benefit.
6. In an organization, if the employee is found drunk or taking any drugs and breaching the moral values.
7. The employee assaults the employer or any colleague at the workplace.
8. The employee makes misuse of their position for their benefit or gain.
9. Joins the other organization without following the rules and compliances.
Termination of employment contract without prior notice by the employee
As per Article 45, of the UAE Labour Law the employee may terminate the contract of employment if the employer:
1. Fails to meet the legal requirements towards the employee, provided that the employee notifies MoHRE about the same 14 working days before quitting the job.
2. Assaulted or harassed the employee at the workplace provided that MoHRE should be notified about the same within 5 working days.
3. The employer failed to remove the factors that may cause harm to the employee at the workplace.
Arbitrary Dismissal of Employee from the organization
As per Article 47 of the UAE Labour Law:
An employee may file a complaint to MoHRE if they believe their employer was fired improperly. The ministry will try to solve the issue as soon as possible.
If the court finds that the dismissal was arbitrary, it will issue an order compelling the employee to receive compensation. The court will decide the amount of compensation based on a number of factors, including the type of job and the last wage drawn.
FAQs (Frequently Asked Questions)
The employee has to serve a relevant and negotiated period in the organization.
While the new law maintains the six-month limit for probationary periods, it now mandates that any party desiring to terminate employment during probation give at least 14 days’ notice.
Employee can leave the job either himself or get terminated by the employer.
