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New UAE labour law for terminating employees Dubai

new uae labour law for terminating employees

As an employee or employer, it’s important to comprehend the new uae labour law for terminating employees.

This article will shed light on the provisions of the law, the rights of an employee, the obligations of an employer, and the various reasons for dismissing employee.

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

New UAE labour law for terminating employees.

The UAE Federal Law No. 33 of 2021 regulates business relationships, providing several provisions covering different cases between workers and employers. If you’re an employer, you need to be aware of the following aspects:

  • Legitimate cases for terminating an employee’s service, with or without prior notice.
  • Your obligations towards your employees.
  • Fair compensation is payable to an employee whose services have been terminated.

Conversely, as an employee, you should be aware of the following:

  • Obligations towards your employer and workplace.
  • Scenarios for employment termination.
  • Your entitlements upon contract termination.

Note: You must consult a specialized labour lawyer to understand these legal matters comprehensively.

Al Mulla Labour Lawyer & Legal Consultant is renowned for their expertise in termination cases in UAE.

Reasons for dismissing employee.

The new UAE labour law for terminating employees outlines nine scenarios for contract termination:

  • Mutual agreement in writing between both parties to terminate the contract.
  • Contract expiration.
  • One party wishes to terminate the contract, adhering to the law’s provisions.
  • The employer’s death.
  • The employee’s death or total permanent disability prevents them from working.
  • The employee is sentenced with a penalty restricting their freedom by a final court judgment.
  • Permanent closure of the company.
  • The business owner’s bankruptcy or exposure to economic or unusual problems leading to the project’s termination.
  • The employee fails to meet the conditions to renew the work permit beyond the employer’s control.

Termination Without Notice Period in UAE new labour law 2023.

The new UAE labour law for terminating employees specifies ten reasons that allow an employer to dismiss an employee without warning, provided they conduct an investigation and inform the employee in writing:

  • Evidence of the employee impersonating someone else or using forged documents.
  • The employee is making a severe mistake or intentionally causing damage to the business.
  • The employee breached the company’s safety and security policies.
  • The employee failed to perform their primary duties despite two warnings and an investigation.
  • The employee disclosing work-related secrets causes losses to the employer.
  • The employee is discovered under the influence of drugs or alcohol during working hours or committing immoral acts.
  • The employee verbally or physically assaults the employer or a manager at work.
  • The employee is absent from work for twenty intermittent days or seven consecutive days without a valid excuse.
  • The employee exploits their position for illegal personal gain.
  • The employee is taking up another job in violation of the law.

Employees’ entitlement to Termination.

The law also provides four cases where an employee can terminate their contract without notice:

  1. The employer’s breach of obligations agreed upon in the contract or as per the Federal Labor Law.
  2. The employee is subjected to violence or harassment by the employer or their legal representative.
  3. Significant risk to the employee’s safety or health at the workplace and the employer failing to take necessary measures to mitigate it.
  4. The employee being assigned work fundamentally differs from what was agreed upon in the contract without their written consent.

Note: In cases where the employer breaches their obligations, the worker must inform the Ministry 14 working days before leaving, provided the employer hasn’t rectified the breach despite being notified by the Ministry.

Arbitrary dismissal and Additionl Situations.

There are two exceptional situations for termination of employment according to the UAE law:

  1. Wrongful Termination.
    This occurs when the employer terminates the worker’s service for a reason unrelated to work or because the worker has complained about them with the MoHRE.
    If this case is proven, the employer must pay fair compensation to the worker, estimated by the competent courts. In addition to compensation, the worker is entitled to all end-of-service benefits per the law.
  2. Lack of Fitness Termination.
    The employer may not terminate the worker’s service due to lack of fitness, except after the worker has exhausted their health leaves. Any agreement contrary to this is null and void.

FAQs about the New UAE Labour Law for Terminating Employees.

An employee can terminate their contract without notice if the employer breaches agreed-upon obligations, subjects the employee to violence or harassment, poses significant risks to the employee's safety or health without mitigation measures, or assigns work that fundamentally differs from the agreed-upon terms without the employee's written consent.
Legitimate cases include mutual agreement, contract expiration, adherence to legal provisions, employer's death, employee's death or total permanent disability, court judgment penalties, company closure, owner's bankruptcy, economic problems, and failure to meet permit renewal conditions beyond the employer's control.


Understanding the new UAE labour law for terminating employees is essential for employers and employees. It helps to know your rights, obligations, and the various cases of contract termination.

And suppose you need legal advice or assistance. In that case, you can contact the office of Al Mulla Labour Lawyer & Legal Consultant, trusted for successful labour issues in the UAE.

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 UAE labour law termination pay and contract ending in Dubai and learn more about the Labour Law Employment Termination in UAE.

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