Labour law for termination of employment in UAE is a legal framework that ensures fairness and clarity for employees and employers.
The UAE’s Labour Law, primarily outlined in Federal Decree-Law No. 33 of 2021 and its amendments, stipulates various rules surrounding terminating employment contracts.
This includes notice periods, valid reasons for termination, and end-of-service benefits.
This article overviews the key provisions of UAE Labour Law concerning employment termination, providing practical insights for employees and employers for 2025.
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Table of Contents
Termination of Employment in UAE Labour Law Rules
Termination of employment in the UAE is governed by Federal Decree-Law No. 33 of 2021 and its subsequent amendments, ensuring that both employees and employers adhere to defined regulations.
Employment can be terminated by mutual agreement, at the expiry of the contract, or for valid reasons specified by law.
Notice Periods and Employee Rights
The notice period, between 30 and 90 days, is a crucial element of employment termination.
During this period, the employee’s rights in termination entitle him to a full salary. He must continue performing his duties unless exceptions are made by mutual agreement.
If either party fails to provide notice, compensation equivalent to the salary for the notice period is required.
Employers must provide written notice and valid reasons for early terminations.
Immediate termination is possible without notice for serious misconduct, such as theft or physical assault.
Employee termination rules allow workers to terminate without notice if their employer violates contractual obligations, such as failing to provide a safe working environment.
End-of-Service Benefits
A full-time foreign worker who has completed at least one year of continuous service is entitled to end-of-service benefits upon the termination of their employment.
The benefits are calculated based on the basic wage, with 21 days’ wages for each year of the first five years of service and 30 days’ wages for each subsequent year beyond that period.
A national worker is entitled to end-of-service benefits upon the conclusion of their employment, in accordance with the laws governing pensions and social security in the State.
Unlawful Termination in UAE
Under Federal Decree-Law No. (33) of 2021, illegitimate termination happens when an employer dismisses a worker for filing a serious complaint with the Ministry or taking legal action (Article 47).
In such cases, the employer must compensate the worker with the compensation amount set by the court, which is capped at three months’ wages.
This compensation is in addition to the worker’s entitlement to notice period allowance and end-of-service benefits.
Read about Negotiating wrongful termination settlement.
Cases of Dubai Labour Law for Termination
Employment termination is governed by UAE labor law, which applies to all emirates, including Dubai.
Below are key scenarios involving employment termination in Dubai and their legal outcomes under UAE Labour Law.
| Termination Case in Dubai | Key Legal Outcome |
|---|---|
| Employee Terminating Contract Due to Unsafe Conditions: An employee in Dubai resigns due to unsafe working conditions that the employer fails to address despite raising the issue. | Under UAE Labor Law, the employee is entitled to terminate the contract without notice due to the employer’s failure to provide a safe working environment. The employee is still entitled to end-of-service benefits. |
| Unlawful Termination for Filing a Complaint: An employee in Dubai is dismissed after filing a complaint with the Ministry of Human Resources and Emiratisation about workplace harassment. | The termination is deemed unlawful under UAE Labour Law. The employee is entitled to compensation for wrongful dismissal, up to three months’ salary, and end-of-service benefits. |
| Termination During Maternity Leave: A female employee in Dubai is terminated during her maternity leave due to business restructuring. | UAE Labour Law protects employees during maternity leave. The employer cannot terminate the employee unless under exceptional circumstances. The employee must be reinstated or compensated, including end-of-service benefits. |
UAE Labor Law Termination Protection
Under the UAE labor law, as of 2025, termination protections are outlined in Federal Decree-Law No. 33 of 2021 (UAE Labor Law), which came into effect in February 2022.
Here are the key points regarding termination protection:
- Notice Period: Termination rules for both employer and employee employees must provide a notice period of at least 30 days.
- Unjustified Termination: If the termination is deemed unjustified, the employee has the right to compensation.
- Termination with Cause: Employers can terminate an employee for valid reasons such as misconduct, failure to perform duties, or violating company policies. However, termination must be substantiated and documented.
- End-of-Service Benefits: Employees terminated after completing at least one year of service are entitled to end-of-service gratuity. The amount varies depending on the length of service.
- Termination During Probation: During the probation period (maximum 6 months), either party can terminate the contract without notice or severance pay unless otherwise specified.
- Special Protections: Certain categories of employees are protected from dismissal during their leave, such as terminating pregnant employees or workers on sick leave.
These protections ensure fair employment treatment and minimize exploitation or wrongful dismissal.
UAE Labor Law Grounds for Termination
Under the UAE Labor Law (Federal Decree-Law No. 33 of 2021), the grounds for termination of an employment contract are as follows:
- Expiration of the contract without renewal or extension.
- Mutual agreement between employer and employee to end the contract in writing.
- Termination by either party: Either the employer or the employee can terminate the contract with notice, provided the agreed-upon notice period is served.
- Employer’s death if the contract is related to the entity.
- Employee’s death or permanent inability to work (based on a medical certificate).
- Final court judgment of a freedom-restricting penalty for at least 3 months.
- Permanent closure of the employer’s establishment.
- Employer’s bankruptcy or insolvency, or any other exceptional reason preventing the continuation of the project.
- Failure to renew the employee’s work permit for reasons beyond the employer’s control.
In cases of termination of employment in UAE without notice, the employer may do so for serious misconduct.
Such as adopting a false identity, causing significant damage to the employer, violating safety rules, or being under the influence of alcohol or drugs during work hours.
An employee may terminate the contract without notice if the employer breaches contractual obligations, assaults or harasses the employee, or fails to address serious health and safety risks.
Learn about Termination employment for redundancy in the UAE.
Legal Services for Employment Termination in UAE
Our labor lawyer in Dubai specializes in labor law, particularly termination of employment in UAE.
He provides expert legal advice and representation in disputes involving unfair dismissal, arbitrary termination, and breaches of employment contracts. His services include:
- Employment Dispute Resolution: Representing employees and employers in disputes over unlawful termination, ensuring compliance with UAE labor laws.
- End-of-Service Benefits: Advising on calculating and securing end-of-service gratuity and other financial entitlements.
- Contractual Obligations: Guiding termination clauses, notice periods, and related compensation as per UAE laws.
- Arbitration and Litigation: Handling cases of wrongful dismissal or termination disputes, assisting clients through MOHRE mediation or the UAE court system.
Our labor lawyers offer comprehensive assistance for legal issues related to the termination of employment in UAE, ensuring clients are protected and compliant with UAE labor regulations.
FAQs about Labour Termination in UAE
Conclusion.
Understanding Labour law for termination of employment in UAE is essential for employees and employers to ensure compliance and protect rights.
The process is structured by clear guidelines on notice periods, valid reasons for termination, and end-of-service benefits. Seeking legal advice can be crucial to avoid disputes or claims of unlawful termination.
Our lawyers & legal consultants offer expert legal services, specializing in employment disputes, wrongful termination, and contract-related matters.
Their guidance ensures that both employers and employees navigate the termination process smoothly and in accordance with UAE law.
Contact our law firm in UAE for expert help. Click the Whatsapp icon below.
A legal consultant specializing in UAE labor law. He regularly publishes articles on the website and writes on various areas of UAE law, with a specific focus on labor law.
