The UAE has guidelines to ensure lawful and ethical 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 Younis Mohammed Al Blooshi, a labour lawyer and legal consultant with expertise in termination cases.
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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:
- Expiration of Contract: The contract term has not been extended or renewed.
- Mutual Agreement: The employee and employer agree to terminate the contract in writing.
- Unilateral Termination: Either party wishes to end the contract, adhering to the termination process stipulations and notice period.
- Employer’s Death: The employer passes away, and the contract is specific to that individual.
- Employee’s Death or Permanent Disability: The employee dies or is permanently incapacitated, as verified by a medical entity.
- Employee’s Legal Convictions: The employee is sentenced to a freedom-restricting penalty for not less than three months.
- Closure of Establishment: As per UAE’s legislation, the business is permanently shut down.
- Employer’s Insolvency: The employer goes bankrupt, becomes insolvent, or encounters circumstances that prevent the continuation of the business.
- Failure to Renew Work Permit: The employee cannot meet the conditions for renewing the work permit due to reasons beyond the employer’s control.
Notice Period for Termination.
Article 43 of the UAE Labour Law dictates that either party in an employment contract can terminate the contract for any ‘legitimate reason’ on the condition that written notification is given to the other party and a notice period of 1 to 3 months is served.
Obligations During the Notice Period.
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.
Mitigating Risks through Expert Legal Consultation.
Navigating the complexities of employment law can be challenging, making it crucial to seek expert legal advice when dealing with matters related to termination. Younis Mohammed Al Blooshi, a renowned labour lawyer and legal consultant in the UAE, offers expert services in handling termination cases.
Equipped with a deep understanding of the UAE Labour Law, he can guide employers and employees alike through the legal intricacies of contract termination, ensuring a fair and lawful process.
FAQs about how to terminate an employee in UAE.
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 Younis Mohammed Al Blooshi via Whatsapp. Click here. Or visit us at our address: Sobha Ivory 1 – Al Amal St – Business Bay – Dubai. You can also call us on phone: 00971589984123.
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.
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.