Employment termination is a significant issue for both employers and employees. One must know on what basis one can be terminated. The new termination rules in the UAE are important to protect your rights and ensure fair treatment. This comprehensive blog explores the latest UAE termination rules, providing detailed insights into lawful termination.
Termination Under UAE Law
Under the UAE Labour Law, employment termination can occur under various circumstances, provided legal procedures are followed. The law aims to balance the rights of employers and employees while ensuring fair treatment.
Situations for Terminating Employment Contracts
According to Article 42 of the UAE Labour Law, employment contracts may be terminated under the following conditions:
– Contract expiration without renewal
– Mutual agreement in writing
– Unilateral decision with notice
– Employer’s death or entity-related demise
– Employee’s death or permanent disability
– Final court judgment restricting freedom
– Permanent closure of the establishment
– Employer’s bankruptcy or insolvency
– Failure to renew work permit due to external factors
Notice Period Requirements
Article 43 stipulates that either party can terminate an employment contract for a legitimate reason with written notice ranging from 30 to 90 days. During the notice period:
– Work must continue as agreed
– Full wage must be paid
– The party failing to serve notice must compensate the other
– The employee is entitled to one unpaid leave day per week to seek new employment
Termination Without Notice by the Employer
Article 44 outlines scenarios where an employer can terminate an employee without notice, such as:
– False identity or forged documents
– Substantial material loss to the employer
– Violations of workplace safety instructions
– Persistent failure to perform basic duties
– Disclosure of establishment secrets
– Drunkenness or drug influence at work
– Workplace assault
– Unauthorized absence
– Exploiting position for personal gain
– Unauthorized employment with another establishment
Termination Without Notice by the Employee
Article 45 allows employees to terminate the contract without notice if the employer:
– Fails to meet contractual obligations
– Commits assault or harassment
– Assigns fundamentally different work without consent
– Exposes workers to grave danger without remedy
Arbitrary Dismissal in the UAE
Arbitrary dismissal occurs if an employer terminates an employee for filing a legitimate complaint or lawsuit. Such termination is illegal and warrants compensation.
If the court proves arbitrary dismissal, it can order the employer to compensate the employee with up to three months’ wages, gratuity, notice period dues, and other unpaid entitlements.
Changing Jobs After Termination
Under the UAE Labour Law, employees can change jobs after termination or the expiry of their contract. Article 27 of the Cabinet Resolution No. 1 of 2022 outlines the conditions for obtaining a new work permit. Employees must end their previous contract and fulfill all legal obligations.After termination, a grace period is provided to obtain a new work permit or leave the country to avoid penalties.
Situations for Obtaining a New Work Permit
Contract Expiration: When the term of the contract ends and is not renewed.
Termination by Employer: If the employer terminates the contract without valid reasons.
Mutual Agreement: If both parties agree to end the contract during its term.
Following the termination or expiry of a contract, employees have a grace period to either secure new employment or exit the UAE. It is vital to adhere to this period to avoid fines or deportation.
Conclusion
By staying informed, individuals can protect themselves against unjust termination . If you are an employee & are looking for legal guidance on employment law, reach out to Dubai lawyers or legal consultants in Dubai. They can help you out with their expertise.