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. Read more to find out the details.
Termination of employment in UAE :
Per Article 42 of Federal Decree-Law No. 33 of 2021, the following circumstances allow for the termination of an employee’s employment in the UAE:
- After the initial term of the employment contract has ended, if the employer does not renew or extend it.
- If both parties, the employer and employee, agree to end the employment contract.
- If the employer and employee mutually agree upon the terms of the notice period and working conditions, they can terminate the employment agreement.
- In case the employee dies, their employment contract terminates, and the employer will make the FnF settlement to their family members.
- In case of the death of the employer, the employment contract may come to an end if the contract is related to its entity.
- When an employee faces a court judgment in not less than a period of three months the employment may come to an end.
- If the organization or establishment is permanently closed as per UAE Laws and compliances, the employment may come to an end.
- 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 in 2025
According to Article 43 of the UAE Labour Law, it says that :
- A formal and written notification is provided to the other party.
- 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 the work should be performed by the employee as per the employment contract during the notice period.
- During the notice period, the worker should be provided with the full wages.
- 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.
- 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 Employer
According to Article 44 of the UAE Labour Law employer may terminate the services of an employee without notice if:
- The employee submits false or fake documents to the employer.
- The employee commits a mistake or error that leads to heavy loss for the employer or if the property of the organization is damaged.
- The instructions regarding the safety of employees and the workplace are violated by the employer.
- 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.
- The secrets of trade or organization are leaked by employees to the competitors or any third party for their benefit.
- In an organization, if the employee is found drunk or taking any drugs and breaching the moral values.
- The employee assaults the employer or any colleague at the workplace.
- The employee makes misuse of their position for their benefit or gain.
- 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:
- Fails to meet the legal requirements towards the employee, provided that the employee notifies Ministry of Human Resources and Emiratisation (MoHRE) about the same 14 working days before quitting the job.
- If someone assaults or harasses the employee at the workplace, the employer must notify the Ministry of Human Resources and Emiratisation (MoHRE) about the same within 5 working days.
Arbitrary Dismissal of Employee from the organization in 2025
As per Article 47 of the UAE Labour Law:
- An employee may file a complaint to the Ministry of Human Resources and Emiratisation (MoHRE) if they believe their employer fired them improperly. The ministry will try to solve the issue as soon as possible.
- If the court finds that the employer acted arbitrarily in the dismissal, it will issue an order compelling the employer to provide compensation to the employee. 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)
An employer in United Arab Emirates can terminate an employee on a mutual agreement, expiry of a contract, misconduct, winding up of a company, and economic reasons; according to the UAE Labour Law.
It is normally 30 to 90 days unless specified by the parties. During this time, the employees are entitled to full pay.
Yes, under Article 44, on reasons such as fraud, gross misconduct or safety violation.
The worker can also be compensated, normally 3 months of the salary in the event that the dismissal is deemed to be unfair.
