This article explains the newest rules of termination of employment in Dubai, from notice periods and compensation to circumstances allowing termination without notice.
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Termination of employment in Dubai.
Regarding ending employment in Dubai, the laws are governed by the Federal Decree-Law No. 33 of 2021 on the Regulation of Employment Relations, also known as the Employment Law.
This law outlines employers’ and employees’ rights and responsibilities and the procedures to be followed during termination.
Notice Period for Termination.
According to the UAE Employment Law, either party can terminate an employment contract by providing a written notice.
The length of the notice period is typically agreed upon in the contract, but the law mandates a minimum of 30 days and a maximum of 90 days.
During this notice period, the employee is expected to continue performing their duties per the contract.
Grounds for Termination of Contract.
The Employment Law stipulates several scenarios in which an employment contract can be terminated. Some of these include:
- Expiry of the contract term without renewal.
- Mutual agreement between the employer and employee.
- Death of either party (if the contract is related to the individual).
- Permanent closure of the establishment.
- Employer’s bankruptcy or insolvency.
- The employee’s failure to meet the conditions for renewing the work permit.
Termination without Notice by Employer.
Under certain circumstances, an employer can terminate the employee’s services without providing a notice period. These include instances where the employee:
- Presents false identity or forged documents.
- Commits a major mistake resulting in substantial loss to the employer.
- Disobeys safety instructions.
- Fails to perform their essential duties despite repeated warnings.
- Discloses business secrets leading to losses or personal gain.
- Exhibits behaviour that breaches public morals at the workplace.
However, such termination can only occur after a written investigation into the employee’s actions.
Termination without Notice by Employee.
Similarly, an employee can terminate their contract without notice if the employer fails to fulfil their contractual or legal obligations.
Other grounds for such termination include:
- Physical assault or harassment by the employer.
- Being instructed to perform work significantly differs from what the contract states.
- Employer’s failure to eliminate serious safety or health risks at the workplace.
Compensation for Breach of Notice Period.
If either party fails to serve the notice period, they are required to compensate the other party.
This compensation, known as ‘pay in lieu of notice’, is equivalent to the employee’s salary for the entire notice period or the remaining part of it.
Arbitrary Dismissal.
If an employer terminates the employee’s services without a valid reason, it is deemed ‘arbitrary dismissal’. In such cases, the employer may be required to compensate the employee with up to three months’ salary.
The employee can seek legal help from the Ministry of Human Resources and Emiratisation in case of suspected arbitrary dismissal.
FAQs about termination of employment in Dubai.
As an employee or employer in Dubai, it’s crucial to understand the laws and regulations surrounding the termination of employment.
A solid grasp of these laws can help ensure fair practices and protect your rights in the workplace.
Legal consultants like Al Mulla, a seasoned labour lawyer, can offer valuable guidance and support in understanding and applying the UAE Labor Law in such situations.
Office of Al Mulla. Whatsapp: Click here. Location: Dubai. Phone: 00971501961291.
We recommend you read about the Labour Law for Termination of Employment in UAE Dubai 2023 and learn about the Mutual Termination 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.