Jebel Ali Free Zone (JAFZA) has specific employment regulations that govern the termination of employment contracts.
The JAFZA employee termination rules outline how contracts can be ended, notice period requirements, gratuity entitlements, and the legal rights of employees and employers.
Understanding these rules is essential to avoid disputes and ensure compliance with UAE Labour Law. Below is a detailed guide to the termination rules applicable to JAFZA employees.
Contact our expert labor law firm in UAE. Click the WhatsApp icon below.
Table of Contents
JAFZA Employee Termination Rules
JAFZA provides a structured framework for terminating employment contracts.
Certain conditions must be met, whether due to mutual agreement, resignation, or legal grounds.
The following sections outline the key aspects of JAFZA’s termination policies.
Employment Termination Methods
An employment contract in JAFZA may be terminated under several conditions:
- Mutual Agreement – Both employer and employee agree to end the contract.
- Probationary Period – Employers must provide 14 days’ notice, while employees must give 30 days’ notice. If an employee resigns to leave the UAE, the notice period is reduced to 14 days.
- Expiry of Contract – If the contract is not renewed, it ends automatically.
- Legal Termination – Either party may terminate the contract in accordance with Article 42 of the UAE Labour Law.
Automatic Termination of Employment
Certain circumstances lead to an automatic termination of employment.
These cases do not require a notice period and occur due to unavoidable situations beyond both parties’ control.
As per UAE Labour Law, a contract automatically ends if the employee passes away during service or suffers total incapacity to work due to illness or injury.
Notice Period & Pay
Notice periods are mandatory unless termination falls under specific legal exceptions. During this period, employees are entitled to their full salary.
- An employee is entitled to a notice period before termination, and the minimum notice period specified in the employment contract is 30 days (unless it is during the preparation period).
- The employee is entitled to full pay during the notice period.
- Employers can decide whether the employee works during the notice period or not.
Termination Without Notice
In certain situations, termination can occur without prior notice. However, both employers and employees must adhere to specific legal conditions.
According to the UAE Labour Law Article 44, employers can terminate employees without notice.
Similarly, employees may resign without notice under Article 45 of the UAE Labour Law.
These cases must be processed through JAFZA.
Illegal Dismissal & Compensation
Employees who are dismissed unfairly have the right to seek compensation. JAFZA employee termination rules consider certain types of dismissal to be unlawful.
It is considered illegal dismissal if an employee is dismissed for filing a valid complaint or court case against the employer.
Compensation may be up to three months’ salary, as verified by JAFZA.
Job Transfer & Continuity
Employees who transfer between companies within JAFZA must ensure the proper process is followed to maintain their employment records.
If a company changes its legal status, employment contracts remain valid.
If an employee transfers to a new company in JAFZA, the previous contract is terminated unless JAFZA approves continuity.
Gratuity Payment in JAFZA
JAFZA End of Service Calculation is a crucial aspect of employment termination. Employees who meet the required service period are entitled to gratuity payments.
The end-of-services payment rules in JAFZA include the following:
- Employees who have completed more than one year of service are entitled to an end-of-service gratuity following UAE Labour Law and Federal Decree-Law No. 47 of 2021.
- They may also receive a greater amount if specified in their employment contract.
- Gratuity is calculated based on basic salary.
- Employees who resign before completing one year forfeit gratuity.
- In case of death, gratuity is paid to the employee’s legal beneficiaries.
Airfare on Termination
If an employee is terminated, the employer must provide airfare to the employee’s home country.
This does not apply if termination is under Article 44 or the employee resigns without a valid reason under Article 45.
If a contract is renewed, airfare is granted upon resignation or dismissal.
Disciplinary Actions & Reporting
JAFZA requires employers to follow a structured process when disciplining employees and report such actions within a specific timeframe.
Employers must report disciplinary actions to JAFZA within 10 days.
Disciplinary actions must follow due process, including:
- Notifying the employee of the allegations within 30 days.
- Allowing the employee to present their case.
- Investigating and documenting the case.
- Notifying the employee in writing.
- Imposing penalties within 60 days of the finding.
Final Dues & Visa Cancellation
Once an employee’s contract ends, employers must settle all outstanding payments and handle visa cancellations promptly.
The JAFZA employee termination rules regarding final dues and visa cancellation include:
- Upon termination, a final dues statement must be submitted to JAFZA.
- Employers must either pay the final dues or provide proof of payment.
- JAFZA reserves the right to recalculate benefits.
- JAFZA cancels residence permits for terminated employees.
- Employers must ensure that the residence permit, access pass, and CEC are canceled within 30 days of the employee’s last working day.
Legal Services Related to JAFZA Employee Termination
Handling employment termination under JAFZA rules can be legally complex. Seeking professional legal guidance ensures compliance with regulations and protects your rights.
Our labor lawyer in Dubai provides expert legal assistance in all aspects of JAFZA employment termination.
The legal services available for resolving employee termination cases at JAFZA include:
- Unlawful Termination Claims representation.
We represent employees in wrongful dismissal cases, ensuring they receive fair compensation for illegal terminations. - Contract Review & Drafting.
We help businesses draft employment contracts that comply with JAFZA and UAE Labour Laws, minimizing legal risks. - Gratuity & Compensation Disputes Resolution.
Our team assists employees in claiming their rightful gratuity payments and end-of-service benefits. - resolving Airfare & Final Settlement Issues.
We support employees in securing their final payments, including airfare entitlements and last salary settlements. - Notice Period & Termination Negotiating.
We advise employers and employees on managing notice periods, termination settlements, and exit agreements. - Guidance on JAFZA Disciplinary & Compliance Cases.
We guide employers on legal disciplinary actions, penalties, and compliance with JAFZA reporting regulations. - Residency & Visa Cancellation Assistance.
We help employers ensure the correct process is followed for visa cancellations and legal formalities after termination.
FAQs about Employee Termination in JAFZA
Conclusion about JAFZA employee termination rules.
JAFZA has clear regulations for employment termination, ensuring a structured and fair process for employers and employees. Understanding these rules is essential to avoid disputes and legal penalties.
Whether you are an employer managing terminations or an employee facing an unfair dismissal, seeking legal advice is the best way to protect your rights.
Our law firm is here to provide expert assistance on all JAFZA employment matters. Contact us today for professional legal support.
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.
