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DMCC Termination Of Employment

Dubai DMCC Termination of Employment

    This article will guide you through the DMCC termination of employment rules under the UAE Federal Decree-Law No. 33 of 2021, which regulates employment relationships in the DMCC Free Zone.

    This law ensures employers and employees have clear guidelines for fair and compliant termination processes.

    We will also provide essential legal services related to DMCC termination and answer frequently asked questions to help employers and employees navigate the termination process in 2025.

    Contact our expert labor law firm in UAE. Click the WhatsApp icon below.

    DMCC Termination of Employment Rules

    The DMCC Free Zone follows Federal Decree-Law No. 33 of 2021 to regulate the termination of employment contracts.

    Below are the key termination rules employers and employees must follow to ensure compliance with the Dubai DMCC Labour Law Termination.

    • Employers must follow the correct legal procedures when terminating employment for valid reasons, such as mutual agreement, contract expiry, an employee’s death, business closure, insolvency, or serious misconduct.
    • Both employers and employees must provide notice according to the employment contract terms, typically 30 to 90 days. If either party fails to give proper notice, they must compensate the other for the full notice period or the remaining duration.
    • Employers must grant end-of-service benefits to employees who have completed at least one year of service. DMCC Gratuity Calculation is based on the employee’s basic wage: 21 days of salary per year for the first five years and 30 days per year after five years.
    • Employers can dismiss employees immediately without notice or compensation in cases of serious misconduct, such as fraud or safety violations.
    • Employers may terminate the contract if the employee fails to renew their work permit, and the failure is beyond the employer’s control.
    • Employers must pay all due wages and end-of-service benefits within 14 days after contract termination.

    Legal Services for Termination of Employment in DMCC

    Our labor lawyer in Dubai offers specialized legal services related to termination of employment for employers and employees within the DMCC Free Zone.

    We ensure that both parties understand and comply with the legal requirements, helping you navigate the termination process smoothly and in full compliance with the law.

    For Employers:

    • Legal guidance on the lawful grounds for terminating employees.
    • Assistance with drafting clear termination clauses in employment contracts.
    • Guidance on compliance with notice periods and compensations.
    • Representation in dispute resolution or arbitration related to employment termination.

    For Employees:

    • Advice on your rights related to termination, including end-of-service benefits and notice periods.
    • Legal representation in cases of unfair termination or disputes over gratuity.
    • Assistance in addressing termination due to serious misconduct or failure to renew work permits.

    Our legal experts ensure employers and employees understand their rights and obligations under DMCC’s regulations.

    FAQs about Employment Termination in DMCC

    Employees with at least one year of service are entitled to end-of-service benefits in DMCC based on their basic wage.
    End-of-service gratuity in DMCC is calculated as 21 days of basic salary for each year of service during the first five years and 30 days of salary per year for each additional year beyond five years.
    An employer in DMCC has to pay all dues, including gratuity, within 14 days of termination.
    An employee in DMCC can terminate their contract with immediate effect if the employer violates the terms of the contract or engages in serious misconduct.
    If an employee in DMCC fails to renew their work permit and it is beyond the employer’s control, the contract may be terminated.

    Conclusion.

    The DMCC termination of employment regulations provide clear guidelines to ensure employers and employees adhere to a fair and legally compliant process when ending an employment relationship.

    Understanding and following these rules can avoid disputes and meet all rights and obligations.

    If you need legal assistance, our law firm specializes in DMCC termination matters for employers and employees, ensuring compliance and protecting your interests.

    Contact our labor law firm in UAE for expert help. Click the Whatsapp icon below.

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