This article will explain terminating an employee on workers compensation in UAE 2024, including the notice period requirements and other relevant provisions.
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Terminating an employee on workers compensation in UAE Rules
The compensation for termination of employment UAE includes two rules:
- A notice period allowance equals the worker’s wage for the entire notice period.
- An arbitrary dismissal compensation cannot exceed the employee’s three-month wage.
Below are the details about both compensations.
Notice period compensation
According to the labor law for employment termination, the worker is entitled to their full wage as per the employment contract throughout the notice period, and any deviation from serving the notice period incurs a compensation allowance.
The following provisions must be observed during the notice period:
- Full Wage Entitlement. The worker is entitled to receive their full wage per the employment contract for the notice period.
- Notice Period Allowance. If either party fails to serve the notice period, they must compensate the other party with a “notice period” allowance.
This allowance is equal to the worker’s wage for the entire notice period or proportionate to the remaining period.
The allowance calculation is based on the worker’s last received wage. - Unpaid Leave for Job Search. If the employer terminates the contract, the worker is entitled to one day of unpaid leave per week during the notice period to search for another job.
Arbitrary Dismissal workers compensation
If arbitrary dismissal is proven, the court may order the employer to compensate the employee.
The amount of compensation will be determined based on factors such as the type of work, the extent of damage caused to the employee, and the duration of their employment.
The compensation cannot exceed the employee’s three-month wage, calculated based on their entitled last salary.
In addition to compensation, the employee can claim their gratuity, notice period dues, or any other unpaid dues from their employer.
We recommend you read about Termination Employment for Dishonesty in UAE.
Also, learn about the Employee rights in termination in UAE Dubai and how to Sue for Wrongful Termination.
Legal Services Related to Workers Compensation for Terminaton in UAE
Our expert labor law team specializes in providing comprehensive legal services related to terminating an employee on workers compensation in UAE, including:
- Legal Consultation: Offering professional advice on the legal framework surrounding workers’ compensation and employment termination in the UAE, ensuring compliance with UAE Labor Law.
- Review of Employment Contracts: Analyzing employment contracts to identify any clauses impacting termination procedures, particularly in workers’ compensation cases.
- Representation in Arbitrary Dismissal Cases: Representing clients in disputes involving claims of arbitrary dismissal and seeking compensation as per UAE law.
- Negotiation of Termination Settlements: Assisting employers and employees in negotiating fair termination settlements, including notice period allowances and gratuities.
- Filing Legal Claims: Preparing and filing legal claims related to wrongful or arbitrary termination, notice period compensation, and workers’ compensation disputes in the relevant UAE courts.
- Court Representation: Providing full legal representation in court proceedings concerning wrongful termination, ensuring clients’ rights are upheld during the dispute resolution process.
- Gratuity and Unpaid Dues Claims: Advising and representing employees in claiming their gratuities, unpaid dues, and other compensations related to termination while on workers’ compensation.
For expert legal services in any of these areas, contact our law firm today.
FAQs About compensation for terminating an employee in UAE
Conclusion.
Terminating an employee on workers compensation in UAE involves following the guidelines outlined in the UAE Labor Law. The law outlines various situations for terminating employment contracts and the required notice periods.
Remember, the information provided in this article is for reference purposes only and should not be considered legal advice.
It is advisable to consult a qualified labour lawyer or the Ministry of Human Resources and Emiratisation for specific and up-to-date information regarding the termination of employment contracts in the UAE.
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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.
