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UAE labour law termination pay Dubai

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 concerning employment termination are outlined in the Federal Decree-Law No. 33 of 2021.

This article aims to understand these provisions, especially those related to notice periods and compensation during the job contract ending.

Office of  Al Mulla. Whatsapp: Click here. Location: Dubai. Phone: 00971501961291.

UAE labour law termination pay and Notice Period.

UAE labour law termination pay

The company must offer financial compensation if an employer dismisses an employee without serving the notice period.

According to Article 43 (3) of the Employment Law, the party in breach of the notice period must pay the other party compensation, known as pay in lieu of notice.

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

Arbitrary Termination Compensation.

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 without a valid reason.

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

FAQs about UAE labour regulation termination pay.

It refers to the rules and regulations regarding the termination of employment contracts outlined in the Federal Decree-Law No. 33 of 2021.
If an employer dismisses an employee without serving the notice period, they must pay the employee compensation, known as pay instead of notice. This compensation should be equivalent to the employee's salary for the entire notice period or the remainder thereof, as per Article 43 (3) of the Employment Law.
If an employer terminates an employee's contract without a valid reason, the termination could be considered arbitrary, and the employer may have to compensate the employee with up to three months' salary, as per Article 47 of the Employment Law.

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 Labour Law Termination Employment in UAE Dubai 2023 and  Negotiating wrongful termination settlement in UAE Dubai.

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