Employment in the UAE, like anywhere else, can be subject to termination.
This article is about the consequences of termination of employment in UAE, which is crucial for employers and employees to know in 2024.
Contact our expert labor law firm in UAE. Click the WhatsApp icon below.
Table of Contents
Consequences of termination of employment in UAE
Upon termination of employment in UAE by the employer, the employee may be entitled to several claims, including:
- Statutory severance pay.
- Compensation for arbitrary dismissal.
- Compensation for non-observance of the notice period.
- Reimbursement of costs for returning home.
Statutory Claim for Severance Pay
Statutory severance pay entitlement varies for domestic and foreign employees. Both are entitled to severance pay, provided the employment relationship lasted at least one year.
Compensation for termination of employment UAE
In addition to severance pay, the employee may be entitled to fair compensation for arbitrary dismissal. The amount of compensation, up to three months’ salary, is at the court’s discretion.
The courts in the UAE often rule in favour of the employee in such cases.
Compensation for Non-Observance of Notice Period
If the employer does not observe the statutory notice period in the case of ordinary termination, the employee is entitled to compensation, even if no damage has occurred.
Reimbursement of Costs for Returning Home
Foreign workers are entitled to reimbursement of the costs of returning home at the employer’s expense.
This is unless they start a new employment relationship in the UAE or terminate it and have enough means to fund their return home.
َWe recommend you read about Employee rights on termination UAE.
Changes in the Employer’s Status
Any changes in the employer’s corporate structure or legal status do not generally affect the continuation of employment contracts.
The employment contract continues, and any severance claims continue to accrue.
Non-Competition Clauses
Article 10 of the new labour law states that the employment contract must specify non-compete clauses regarding time, place, and nature of work.
Moreover, a non-compete clause cannot last beyond two years from the end of the contract.
Dispute Resolution
In case of a dispute arising from termination, an attempt to reach an amicable settlement must first be initiated with the Ministry of Human Resources and Emiratisation.
If this fails, the dispute is referred to the competent court.
Learn about Mutual Termination of Employment in UAE Dubai.
Legal Services Related to Consequences of Employment Termination in UAE
Our specialized labor lawyer in Dubai offers expert legal services related to the consequences of employment termination in UAE, including:
- Advising on Severance Pay Claims: Assisting employees in calculating and claiming statutory severance pay, ensuring compliance with UAE labor laws.
- Legal Representation in Arbitrary Dismissal Cases: Offering legal advice and representation in disputes involving unfair or arbitrary dismissal claims to secure fair compensation.
- Notice Period Compensation: Providing legal support in cases where the employer fails to observe the statutory notice period, ensuring that the employee receives rightful compensation.
- Reimbursement of Repatriation Costs: Representing foreign workers in securing reimbursement for returning home, where applicable, under UAE labor laws.
- Enforcing Non-Competition Clauses: Offering guidance on drafting, negotiating, and enforcing non-compete clauses, ensuring they comply with legal limitations regarding time, place, and scope of work.
- Dispute Resolution: Assist clients with the dispute resolution process, from amicable settlements through the Ministry of Human Resources and Emiratisation to court representation if necessary.
Our legal experts focus on protecting your rights and interests after employment termination, ensuring compliance with UAE labor laws, and achieving favorable outcomes for our clients.
Contact us for specialized legal support.
FAQs about consequences of termination in UAE.
Understanding the consequences of termination of employment in UAE is crucial for both the employer and the employee. It ensures a smooth transition and helps to avoid any legal complications that may arise.
Contact our labor 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.
