The DIFC stands as a beacon of financial and business excellence in Dubai.
Integral to its operation is the DIFC Employment Law, which meticulously outlines procedures and protocols for terminating employment in 2025.
DIFC employment law termination framework is designed to balance and protect the interests of both employers and employees.
Contact our expert labor law firm in UAE. Click the WhatsApp icon below.
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DIFC Employment Law Termination Rules
Under the DIFC Employment Law (Law No. 2 of 2019), the termination of employment is governed by specific rules designed to protect both employers and employees.
Key provisions include minimum notice periods, grounds for immediate dismissal, and the calculation of gratuity payments.
Minimum Notice Periods
The law requires employers and employees to provide a written notice before terminating employment.
The notice period depends on the employee’s length of continuous service:
- 7 days if employed for less than 3 months.
- 30 days if employed for over 3 months but less than 5 years.
- 90 days if employed for more than 5 years.
This notice period can be extended by mutual agreement in the employment contract. Employers may also pay employees in lieu of notice, provided the employee agrees.
Termination for Cause
Both employers and employees can terminate employment immediately for cause. “Cause” includes serious misconduct or a breach of contract.
Employees terminated for cause have the right to request a written statement detailing the reasons for their dismissal. Employers must provide this within 14 days of the request.
If the employee terminates for cause, they are entitled to:
- Wages for the notice period.
- Gratuity payment for the notice period.
- Payment for any accrued but unused vacation leave.
However, suppose the employer terminates the employee for cause. In that case, the employee loses entitlement to wages for the notice period.
However, they still receive a gratuity payment and payment for accrued leave, calculated up to the termination date.
Gratuity Payment after Termination
Employees who have completed at least one year of service are entitled to a gratuity payment.
For employees who are not registered with the General Pension and Social Security Authority (GPSSA), the gratuity is calculated as follows:
- 21 days of basic wage for each year of the first 5 years.
- 30 days of basic salary for each additional year.
- The total gratuity is capped at two times the employee’s annual wage.
Pension Contributions for UAE and GCC Nationals
Employers must ensure that UAE and GCC nationals are registered with the GPSSA and make necessary pension contributions.
These employees are not eligible for a gratuity payment, but they may receive a top-up pension contribution if their employer’s contribution to GPSSA is below the required amount.
DIFC Employment Termination Cases Services
Our labor lawyer in Dubai is renowned for his expertise in DIFC employment law, particularly in handling complex termination cases. Here’s how we help:
- Regulatory Compliance: We strictly adhere to DIFC regulations and update our advice with the latest legal developments.
- Strategic Guidance: We provide strategic planning and guidance throughout the termination process, minimizing risks and optimizing outcomes.
- Expert Representation: Our team offers expert legal representation, including drafting termination notices, negotiating severance packages, and, if needed, court representation.
- Preventative Advice: We advise on best practices for termination procedures to prevent future disputes and ensure smooth HR operations.
- Dispute Resolution: We specialize in efficiently resolving disputes through mediation and arbitration and defend our client’s rights in court when necessary.
With our lawyers, employers and employees will receive professional legal support tailored to the DIFC’s specific dynamics in 2025.
Read about DIFC courts employment law Services and DIFC employment lawyers services.
Also, learn about law firms in DIFC UAE.
FAQs about DIFC employment regulation on termination
Conclusion about DIFC employment law termination:
Termination of employment in the DIFC is governed by a robust legal framework designed to ensure fairness and transparency.
For those facing legal challenges related to employment termination, partnering with specialists like our lawyers can provide the necessary edge to navigate these complexities successfully.
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.
