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Nonrenewal of Employment Contract Dubai UAE

nonrenewal of employment contract

In this article, we will delve into the UAE Labor Law and examine the nonrenewal of employment contract in detail.

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

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.

If you choose not to renew your contract in the UAE, it is considered nonrenewal, not termination. The employer should be notified, and there may be a notice period specified in the contract.
Nonrenewal of a contract means the employer chooses not to extend it further, giving notice before its expiry. It's different from termination, which involves ending the contract before its natural expiration.
If you do not complete your contract in the UAE, there could be consequences depending on the terms outlined in the contract and UAE Labor Law. It's essential to consider notice periods and potential financial implications.
No, not renewing a contract is different from termination. Nonrenewal means choosing not to extend the contract, while termination involves ending the contract before its natural expiration. The legal implications and processes may vary.


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.

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