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uae labour law termination pay

UAE Labour Law Termination Pay

    The UAE labour law termination pay is an important aspect that both employees and employers must understand.

    The rules and regulations regarding employment termination are outlined in Federal Decree-Law No. 33 of 2021.

    This article aims to help readers understand these provisions, particularly those related to notice periods and compensation upon job contract termination in 2024.

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

    UAE Labour Law Termination Pay Rules and Amounts

    UAE labour law termination pay

    The company must offer financial compensation if an employer dismisses an employee without giving the employee a notice period of 1 month to 3 months.

    If either party breaches the notice period requirement, he must pay the other party compensation, known as notice period allowance.

    This compensation for termination of employment UAE should be equivalent to the employee’s salary for the entire notice period or the remainder thereof.

    3 Months’ Salary on Termination UAE

    The UAE labour law also includes provisions for compensation in case of arbitrary termination.

    Terminating could be considered arbitrary if an employer terminates an employee’s contract because he filed a valid complaint to MoHRE.

    In such cases, per Article 47 of the Employment Law, the employer may have to compensate the employee up to three months’ salary.

    In addition to compensation, the employee can claim his severance pay Dubai UAE, notice period dues, or any other unpaid dues he is entitled to from his employer.

    Employees and employers can negotiate wrongful termination settlements in UAE Dubai.

    Legal Services Related to Labour Termination Pay in UAE

    Our labor lawyer in Dubai specializes in handling legal matters related to UAE labour law termination compensation. We provide expert guidance and representation in the following areas:

    • Advising on termination pay regulations.
    • Assisting with notice period compensation claims.
    • Handling cases of arbitrary termination.
    • Representing employees in severance pay disputes.
    • Negotiating wrongful termination settlements.
    • Filing complaints with MoHRE for unfair dismissals.
    • Offering legal support for breach of contract disputes.
    • Ensuring compliance with Federal Decree-Law No. 33 of 2021.

    FAQs about UAE labour regulation termination pay

    The compensation an employer must pay if he dismisses an employee without notice period in UAE is equivalent to the employee's salary for the entire notice period or the remainder thereof, as per Article 43 (3) of the Employment Law.
    The compensation for arbitrary termination under UAE labour regulation termination pay is up to three months' salary, as per Article 47 of the Employment Law.

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

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