With the introduction of the new Federal Labor Law in the United Arab Emirates, wrongful termination during probationary period in UAE has undergone significant amendments.
This was formalized under Law No. 33-year 2021 concerning regulating employment relationships, effective 2nd February 2022.
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Table of Contents
Wrongful Termination during Pprobationary Period in UAE.
In the past, employers had the privilege to end the employment contract during the probation period immediately without any requirement for notifications. However, the landscape has now changed.
Despite retaining the right to terminate the employment contract during the probation period, which is restricted to 6 months, employers are now obligated to provide a 14-day notice or compensate the employee with a 14-day salary on the total salary base if the termination is immediate.
Should an employer fail to provide the mandated 14 days’ notice, they are obligated to compensate the employee financially for the breach of this rule.
Termination by Employee During Probation.
If an employee decides to terminate the contract during the probation period, two scenarios come into play:
- If the employee wishes to switch to another employer, a one-month notice must be served to the current employer. Furthermore, the new employer must compensate the previous employer for all the expenses of hiring the employee.
- If the employee plans to leave the country after terminating the contract, a 14-day notice must be issued to the employer.
Penalties for Non-compliance.
Failing to adhere to the required notice period rules can lead to significant penalties. The violating party might face consequences such as cancelling the employee’s work permit for one year, or the employer might have to pay fines.
Termination of Limited Labor Contract Before Its Expiry.
Should either party wish to terminate the contract during its term, a legal notice must be served to the other party. This notice period is a mandatory one month, which can be extended up to 3 months per the new labour law.
Compensation for Early Termination.
In the event of wrongful termination during the probationary period in UAE, the question arises whether the terminating party is obligated to compensate the other party.
In the new Labor Law (Federal Decree-Law No. 33 of 2021 and its subsequent executive regulation No 1-year 2022), compensation is not mentioned in the event of terminating the employment contract before its term ends.
As such, the courts will soon issue judgments in similar cases to provide guidance. Agreeing on these potential cases when signing the employment contract is advisable.
Legal Assistance for Wrongful Termination During Probationary Period in UAE.
Al Mulla, a labour lawyer, has established a reputation for being the best when dealing with wrongful termination cases during the UAE’s probationary period.
With extensive experience and knowledge in the field, he can provide valuable counsel and guidance to those facing wrongful termination of employment.
FAQs about wrongful termination during probationary period in UAE.
Conclusion.
The introduction of the new labour law in the UAE has brought about significant changes in the termination process during the probation period. Employers and employees must be aware of these changes to avoid legal complications.
Should you find yourself in a situation of wrongful termination during probationary period in UAE, seeking professional legal help is highly advised.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
Contact the office of Al Mulla via Whatsapp. Click here. Or visit us at our law firms: Dubai. You can also call us on phone: 00971501961291.
We recommend you read about termination in probationary period in UAE. Also, learn about filing a Lawsuit for Wrongful Termination in UAE Dubai. You can consult the Best 3 wrongful termination lawyers near you 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.