UAE labor law termination unlimited contract is essential for employees and employers to understand.
The Ministry of Human Resources and Emiratisation (MOHRE) regulates the relationship between employers and employees, and both parties must abide by UAE labour laws to preserve their rights.
This article will discuss the termination of unlimited contracts in the UAE, the benefits, and the gratuity calculation.
Table of Contents
UAE labor law termination unlimited contract.
An unlimited contract is not limited to a specific period and can be terminated by either the employer or the employee. Terminating such a contract requires written notice to the other party.
According to UAE labour law, an employee must submit a written resignation letter; the notice period can be 1-3 months.
For day workers, the notice period is 1 week if the employee worked between 6 months to 1 year, 2 weeks if the employee has worked for at least 1 year, and 1 month if the employee has worked for at least 5 years.
The employer must also provide prior notice to the employee, calculated using the total service period provided by the employee.
Unlimited Contract Termination Benefits in the UAE.
An employee can leave without notice if the employer breaches any obligations outlined in the contract and the law or if the employer or representative assaults the employee.
The employer also has the right to terminate the employee without prior notice before the completion of 6 months and if the employee breaches the obligations outlined in the contract and the law.
The dismissal shall be considered arbitrary if the employee is dismissed without any reason after the completion of their probation period or if the reason is not work-related or because of a complaint submitted to the concerned authorities against the employer.
End of Service Gratuity Calculation for Unlimited Contract Termination.
End-of-service gratuity is a benefit that an employee is entitled to receive upon terminating an employment contract. The gratuity calculation for unlimited contract termination is as follows:
- The wage is for 21 days for the first 5 years of service.
- The wage of 30 days for every additional year.
- Should an employee bound by an unlimited contract leave their work by choice after continuous service of at least 1 year and a maximum of 3 years, they shall be entitled to one-third of the end-of-service gratuity.
- Should their continuous service be at least 3 years and a maximum of 5 years, they shall be entitled to two-thirds of the end-of-service gratuity.
FAQs about uae labor law termination unlimited contract.
In conclusion, the UAE Labor Law Termination of Unlimited Contract is an important aspect of the employment relationship between an employer and an employee.
Both parties must comply with UAE labour laws to preserve their rights.
An unlimited contract is not limited to a specific period and can be terminated by the employer or the employee with prior written notice.
The employee is entitled to end-of-service gratuity upon the termination of their employment contract, which is calculated based on their length of service.
It is advisable to seek the guidance of a labour lawyer and legal consultant for labour contract cases in the UAE. Younis Mohammed Al Blooshi Labour Lawyer & Legal Consultant is the best for labour contract cases in the UAE.
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 Unlimited contract termination by employers in Dubai and learn about the Early termination of employment contracts by employers. Also, Understand UAE labour law termination pay and Contract Ending in 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.