The new labour law provides more flexibility to both parties in terminating the relationship; unlimited contract termination by employer does not require the completion of the contract term.
However, employers need to provide a legitimate reason and conduct a thorough internal investigation before dismissing their employees without a notice period.
In this article, we will discuss the termination of unlimited contracts by employers in the UAE.
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Table of Contents
Unlimited Contract Termination by Employer.
Under the new UAE labour law, employers can terminate unlimited contracts in certain situations.
These situations include instances where an employee submits false documents, fails to comply with the employer’s instructions or perform their duties, or reveals the employer’s confidential business information to third parties.
Additionally, employers may terminate an employee’s contract if they are found to be under the influence of drugs or alcohol. At the same time, at work, engage in immoral activities on the job or verbally or physically abuse their employer or colleagues.
Furthermore, employers may terminate employees’ contracts if they are absent from work for seven consecutive days or 20 non-consecutive days.
However, employers need to provide a legitimate reason and conduct a thorough internal investigation before dismissing their employees without a notice period. If an employer terminates the contract without a legitimate reason, this may be considered arbitrary.
The employer may have to compensate the employee up to three months’ salary, per the new labour law.
Moreover, an employee may also terminate the contract without notice if the employer does not fulfil the conditions laid down in the employment contract, assaults the employee, or assigns the employee another work without their consent.
Notice Period and Compensation.
If an employer does not serve the notice period to the employee, then monetary compensation is a must, as per the UAE labour law. The minimum notice period of 30 days continues, and a maximum of 90 days notice period has been introduced.
Minimum notice periods apply for employees leaving while still employed on unlimited-term contracts based on their years of service.
The new law protects employees who are terminated without a notice period or unfairly dismissed. If the employer fails to comply with the UAE labour law, the employee can file a complaint against the employer.
Younis Mohammed Al Blooshi Labour Lawyer & Legal Consultant is the best for labour contract cases in the UAE.
FAQs about unlimited contract termination by employer.
Conclusion.
The new UAE labour law provides more flexibility to both parties in terminating the relationship and enhances employment rights.
However, employers need to provide a legitimate reason and conduct a thorough internal investigation before dismissing their employees without a notice period.
The new law also provides more protection to employees who are terminated without a notice period or unfairly dismissed. If you are an employee or employer in the UAE, it is essential to understand the new labour law and seek legal advice.
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.
learn about Employment Contract expiration in Dubai, and read about the restrictive covenants in contracts. Also, learn about the Employment contract renewal clause in Dubai and know the difference between limited and unlimited contracts in UAE labour law.
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.