How to end employment contract in the UAE?
Terminating an employment contract can be challenging for employers and employees in the UAE. However, knowing the legal provisions and procedures is necessary to ensure a lawful and just contract termination.
This article will discuss the various ways of ending an employment contract in the UAE, the legal requirements, and the implications of violating the UAE labour law.
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Table of Contents
How to end employment contract in the UAE?
When the term of the employment contract comes to an end, the employer and employee can terminate the contract without any legal consequences.
However, it is essential to ensure the contract expiration date is specified in the agreement. If the contract is not extended or renewed, the employment relationship will automatically terminate on the expiry date.
Mutual Agreement.
If the employer and employee agree to end the contract before the expiration date, they can do so by mutual agreement. The parties must document their agreement in writing to avoid any future disputes.
Notice Period.
According to the UAE labour law, either party can terminate the employment contract by giving notice of 1 to 3 months, depending on the duration of the contract.
During the notice period, the employee is entitled to his/her full wage per the contract.
Suppose the employer fails to provide the notice period. In that case, he/she must pay the employee a notice period allowance equal to the worker’s wage for the full notice period or in proportion to the remaining period.
Legitimate Reason.
Either party can terminate the contract for a legitimate reason, such as poor performance, misconduct, redundancy, or mutual agreement.
However, the party terminating the contract must provide written notification to the other party and comply with the notice period requirements.
Ending an Employment Contract Early.
It would be considered arbitrary dismissal if either party wishes to end the contract before the expiration date without a legitimate reason.
The party who violates the contract terms may face legal consequences, such as compensating the other party or facing a lawsuit.
Steps to End Employment Contract in UAE.
- Review the Contract Terms: Begin by carefully reviewing the employment contract terms. Understand the provisions related to termination, notice periods, and any applicable penalties or consequences for early termination.
- Mutual Agreement: Consider initiating discussions with the other party to reach a mutual agreement on terminating the contract. Document any agreements in writing to avoid misunderstandings or disputes later on.
- Notice Period: Determine the required notice period for terminating the employment contract as per UAE labor laws. Typically, notice periods range from 1 to 3 months, depending on the duration of the contract.
- Consult Legal Experts: Seek guidance from legal experts, such as Al Mulla Lawyer & Legal Consultant, specializing in employment contract cases in the UAE. They can provide valuable insights and ensure compliance with relevant laws and regulations.
- Comply with Legal Requirements: Adhere to all legal requirements and procedures outlined in the UAE labor laws when terminating the employment contract. Failure to comply with statutory obligations may result in legal consequences.
FAQs about how to end employment contract.
Conclusion.
Terminating an employment contract in the UAE requires proper documentation, a notice period, and compliance with UAE labour law.
Employers and employees must know their rights and obligations to avoid legal disputes.
Suppose you need legal advice or assistance regarding how to end employment contract in UAE.
In that case, Al Mulla Labor Lawyer & Legal Consultant is the best resource for resolving your issues and providing expert guidance.
Contact the office of Al Mulla via Whatsapp. Click here. Or visit us at our law firms: Dubai. You can also call us on phone: 00971501961291.
We recommend you read about the Cancellation of employment contract in Dubai from Labor Lawyer and UAE labour law termination limited contract in Dubai.
Also, read about the Wrongful contract termination with Labor lawyer Dubai.
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.