Termination in the UAE can be a minefield for both employees and employers. Knowing your rights and the process is key if you find yourself in this situation. In the UAE an employer can terminate an employee without cause but they must follow the legal requirements and notice periods as per the labour law.
If you are terminated you may be entitled to end of service gratuity, unpaid wages and accrued leave. Knowing the rules will help you navigate this tricky situation better. Knowing your rights will prevent misunderstandings and protect your interests
This article will cover the legal aspects of employee termination in the UAE, including the reasons for termination and what you are entitled to. By the end you will know what to expect and what to do if your employment is terminated.
Table of Contents
Employee Termination in the UAE
Employee termination in the UAE is governed by certain legal rules and types of termination. Knowing these is important for employ
Legal Framework
The UAE has a comprehensive legal framework for employment which is mainly regulated by Federal Decree-Law No. 33 of 2021 on the Regulation of Employment Relationships. This law outlines the employment contracts, termination process and the rights of both parties.
When terminating an employee an employer must provide valid reasons such as poor performance or misconduct. Notice periods as per the contract or the law must be followed and the employee must be informed in advance. Failure to comply with these rules may lead to legal consequences or co
Types of Termination
Termination in the UAE can be classified into two main types: termination at the employer’s initiative and termination at the employee’s initiative.
- Employer-Initiated Termination: This can be for reasons such as misconduct, redundancy or breach of company policies. Employers must document reasons well to defend their decision if challenged legally.
- Employee-Initiated Termination: Employees may resign for various reasons such as better job opportunities or personal issues. They must provide notice as per their contract which can be 30 days to 90 days depending on the role a
Knowing these helps you navigate the termination process in the UAE and protect your rights.
Employee Rights and Entitlements
In the UAE employees have certain rights and protections when terminated. Knowing these legal rules will help you protect your rights during the termination process. Here are the key points.
End of Service Benefits
When your employment is terminated you are entitled to end of service benefits. This includes a gratuity payment calculated on yo
- Calculation:
- For the first five years 21 days’ wage for each year of service.
- After five years 30 days for every subsequent year.
You must have completed at least one year of service to qualify. These benefits are important as they will help you during your transition to new employment.
Compensation for Unfair Dismissal
If you feel you were terminated unfairly you can claim compensation for unfair dismissal. The UAE labour law protects against arbitrary termination.
- Claim Process:
- You must first approach the Ministry of Human Resources and Emiratisation.
- If unresolved you can escalate the issue to
Compensation may cover wages and benefits depending on the circumstances of your termination. Document everything related to your employment and termination for a stronger case.
Notice Period and Termination Letters
In most cases you must receive a notice period before termination. The period can be 30 days to three months depending on your contract and length of service.
- Termination Letter:
- Must be in writing and state the reason for termination.
- Must mention the notice period and end of
No notice period may entitle you to additional compensation. Always review your contract to know your rights in these cases.
If Company Terminates an Employee in UAE Benefits
When a company terminates an employee in the UAE there are certain benefits the employee may be entitled to.
- End of Service Gratuity
You may be eligible for end of service gratuity. This is calculated on your length of service and final salary. - Unused Leave Compensation
If you have any unused annual leave you can get compensation for this. This is paid at your regular wage rate. - Medical Insurance Coverage
Some companies may continue your medical insurance coverage for a certain period after termination. Check with your employer for details. - Notice Period Compensation
If the company terminates your employment without notice you can get compensation for the notice period as per your contract. - Transfer of Sponsorship
You may have the option to transfer your sponsorship to another employer so you can look for new job without leaving the UAE. - Job Placement Support
Some companies offer job placement or career counseling services to ter
These benefits can vary depending on your employment contract and the reasons for termination. Always refer to UAE labor laws and your employment agreement for specific details.
