In this article, we will delve into the UAE Labor Law and examine the nonrenewal of employment contract in detail.
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Table of Contents
Nonrenewal of Employment Contract UAE.
When an employment contract is not renewed, the employer is not terminating it but choosing not to extend it further.
In this case, the employer must give the employee notice of the nonrenewal of the contract before the expiry of the contract.
Notice of non renewal of employment contract.
The notice period should be specified in the employment contract or, if not, must be at least 30 calendar days. Employees are entitled to an end-of-service gratuity if they have completed at least one year of uninterrupted service.
Employees who resign with less than five years of service are not entitled to a gratuity.
However, if they have worked for more than five years, they are entitled to the same remuneration at the end of the service period as if they had resigned with a contract of indefinite duration.
Reasons for not renewing employment contract
Under the UAE Labor Law, an employment contract can be terminated in three cases: by the employer, by the employee, or by mutual consent.
In the case of nonrenewal of an employment contract, the employer can terminate the contract before the expiry of the date.
This is if the worker has breached any of the grounds set out in Articles 120 and 88 of the Labor Law.
The new law also stipulates that a fixed-term contract may be terminated for the following reasons: expiry of the contractual period (unless extended or extended), mutual consent, or breach of any of the grounds set out in Articles 120 and 88.
A fixed-term contract is a contract that is usually dependent on the duration of the UAE residency visa, and it terminates automatically at the end of the term.
Unless it is terminated earlier by one of the parties or renewed by both parties.
FAQs about nonrenewal of work contract.
Conclusion.
The nonrenewal of an employment contract can be a stressful and uncertain time for both employers and employees. Understanding the provisions of the UAE Labor Law and seeking legal advice to protect your rights is essential.
Remember, if you are facing a nonrenewal of employment contract, Al Mulla Labour Lawyer & Legal Consultant is the best resource to help you navigate the process and achieve a fair outcome.
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 Dubai and the End of employment agreement in Dubai UAE.
Also, learn about Hiring the Best Employment Agreement Lawyer in the UAE 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.