Termination of employment in the UAE: rights, procedures and compensation

In the United Arab Emirates (UAE), termination of employment is regulated by Federal Decree-Law No. 33 of 2021, which entered into force on February 2, 2022 and defines the rules for the private sector. The law ensures a balance of interests between employers and employees by establishing clear procedures and guarantees.
Grounds for termination of an employment contract.

According to article 42 of the law, an employment contract may be terminated in the following cases:

    • Expiration of the contract without its renewal.
    • Mutual written consent of the parties.
    • The initiative of one of the parties, subject to the observance of the notification period.
    • The death of an employer or employee, if this affects the ability to fulfill obligations.
    • Permanent disability of the employee, confirmed by a medical report.
    • Liquidation of the company or bankruptcy of the employer.
    • The inability to extend the work permit for reasons beyond the control of the employer.

Notification period
The standard notification period is from 30 to 90 days, depending on the terms of the agreement. If one of the parties does not comply with this period, it is obliged to pay compensation equal to the salary for the corresponding period.
Termination without notice:
In certain cases, it is possible to terminate an employment contract without notice.

From the employer’s side:

  • Provision of forged documents by the employee.
  • Violation of labor discipline or causing damage to the employer.
  • Absence from work for no valid reason for more than 20 days a year or more than 7 consecutive days
    On the part of the employee:
  • Non-compliance by the employer with the terms of the contract.
  • Physical or moral abuse by the employer.
  • Dangerous working conditions that threaten the health or life of an employee
    Illegal dismissal
    According to article 47 of the law, dismissal is considered illegal if an employee was dismissed for:
  • Filing a complaint with the Ministry of Human Resources and Emiratisation (MoHRE).
  • Initiating legal proceedings against the employer.
    In such cases, the employee is entitled to compensation.
    Compensation for dismissal
    Employees who have worked for more than one year are eligible for severance pay.:
  • 21 days of base salary for each of the first five years of employment.
  • 30 days of base salary for each subsequent year.
    They are also paid:
  • Compensation for unused vacation time.
  • Salary for the time worked.
  • Any other payments due
    Rights and obligations of the parties
    The employer must:
  • Provide a written notice of termination of the contract.
  • Pay all amounts due within 14 days from the date of dismissal.
  • Ensure compliance with all terms of the contract and legislation.
  • Conclusion
  • Termination of employment in the UAE requires strict compliance with the law. Knowing your rights and responsibilities helps you avoid legal problems and ensures that both parties are treated fairly.
  • For more information and advice, it is recommended to contact the Ministry of Human Resources and Emiratisation (MoHRE).
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