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How to terminate an employee in UAE Dubai Legally?

how to terminate an employee in uae

The UAE has guidelines to ensure lawful termination of employment contracts to prevent unjust or arbitrary dismissals.

This article discusses how to terminate an employee in UAE lawfully and offers insight into the services of Al Mulla, a labour lawyer and legal consultant with expertise in termination cases.

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

How to terminate an employee in UAE legally?

The UAE Labour Law, under Article 42, specifies several scenarios in which an employment contract may be terminated. These include:

  1. Expiration of Contract: The contract term has not been extended or renewed.
  2. Mutual Agreement: The employee and employer agree to terminate the contract in writing.
  3. Unilateral Termination: Either party wishes to end the contract, adhering to the termination process stipulations and notice period.
  4. Employer’s Death: The employer passes away, and the contract is specific to that individual.
  5. Employee’s Death or Permanent Disability: The employee dies or is permanently incapacitated, as verified by a medical entity.
  6. Employee’s Legal Convictions: The employee is sentenced to a freedom-restricting penalty for not less than three months.
  7. Closure of Establishment: As per UAE’s legislation, the business is permanently shut down.
  8. Employer’s Insolvency: The employer goes bankrupt, becomes insolvent, or encounters circumstances that prevent the continuation of the business.
  9. Failure to Renew Work Permit: The employee cannot meet the conditions for renewing the work permit due to reasons beyond the employer’s control.

Termination Notice period in UAE new labour law 2023.

Article 43 of the UAE Labour Law dictates that either party can terminate the contract by giving a legitimate reason and a 30 to 90 calendar days’ notice.

During the notice period, the following provisions must be adhered to:

  • The employee must continue to perform their duties as outlined in the contract.
  • The employee is entitled to their full wage as per the contract for the notice period.
  • Suppose either party fails to serve the notice period. In that case, they must pay the other a ‘notice period’ allowance, calculated based on the employee’s last wage and equivalent to the whole or proportional wage for the remaining notice period.

Moreover, if the employer initiates the termination, the employee is entitled to an unpaid leave of one day per week during the notice period to seek new employment.

The notice period can be reduced or waived upon mutual agreement without infringing on any party’s rights.

FAQs about how to terminate an employee in UAE.

Either party can terminate the contract by giving a legitimate reason and a 30 to 90 calendar days' notice.
The employee must continue to perform their duties, and the employer must pay the employee their full wage per the contract for the notice period. If either party fails to serve the notice period, they must pay the other a 'notice period' allowance.
Yes, the notice period can be reduced or waived upon mutual agreement without infringing on any party's rights.

Conclusion.

Understanding how to terminate an employee in UAE involves thoroughly comprehending the UAE Labour Law. Both employers and employees must know their rights and responsibilities to ensure a fair and lawful termination.

When in doubt, seeking professional legal advice can help navigate the complexities of the law and ensure the best possible 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 Termination of Employment rules and learn about the termination in business downturn in UAE Dubai.

Also, read about the Consequences of termination UAE Dubai and the company employment termination in UAE Dubai.

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