Circumstances under which employee can be terminated
According to Article 42 of the Federal Decree Law No. 33 of 2021, employment of an employee in UAE can be terminated in the following circumstances:
1. If the term of the employment contract is terminated and it is neither extended nor renewed from the side of the employer.
2. If both the employer and the employee, mutually agree to end the employment contract.
3. If either the employer or employee wishes to terminate the employment contract, providing that they are mutually agreed on notice period terms and employment conditions.
4. In case of the death of the employee, the employment contract comes to an end and FnF will be made 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.
9. If the employee fails to fulfill the conditions and terms of renewing the employment, the employment may be terminated.`
Notice period of Termination
According to Article 43 of the UAE Labour Law employment contract can be terminated for any legitimate reason provided 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.
Additionally, the following provisions must be followed:
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.
It is necessary to note that the notice period can be negotiated or exempted based on the mutual agreement from both parties.
Termination of 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. The employee is found drunk or taking any drugs in the organization and breaching the moral values of the organization.
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 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
Article 47 of the UAE Labour Law states that if the employer terminates the employee for filing a complaint against the MoHRE this activity is considered as illegal.
If an employee believes that the employer has been dismissed illegally they can raise a complaint to MoHRE. The ministry will try to solve the issue as soon as possible. If the case is not resolved by MoHRE it will further go to the respective court.
If arbitrary dismissal is proven before the court, the court will provide the order to pay compensation to the employee. The value of compensation will be decided by the court based on certain things such as the last wage drawn, type of job etc.
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.