In the UAE, significant strides have been made to ensure the fair treatment of employees in the workplace, particularly through the provisions of the UAE Labour Law (Federal Law No. 33 of 2021). These regulations provide robust protections against arbitrary dismissal, ensuring that employees can only be terminated with just cause and through a formal process.
Key Provisions for Employment Termination
Legitimate Grounds for Contract Termination:
- Expiration of contract term without renewal.
- Mutual agreement to end the contract with written consent.
- Termination by either party with adherence to agreed notice periods.
- Closure of the business or the death of the employer, provided the employment contract is directly related to the employer’s personal involvement in the business.
Notice Period Requirements:
- Legitimate termination requires a written notice to be served ranging from 30 to 90 days.
- During the notice period, employees must be paid in full and continue to work unless mutually agreed otherwise.
- Compensation for failure to serve the notice period equates to the employee's wage for the notice duration.
Protections Against Unfair Dismissal:
- Employers must conduct a written investigation before dismissal and document the justification.
- Dismissal must be formally communicated to the employee.
- Specific protections are in place to prevent dismissal due to the employee's legal activities, such as filing complaints or lawsuits against the employer.
Conditions Allowing Immediate Termination Without Notice
By the Employer:
- Submission of false identity or forged documents by the employee.
- Intentional actions causing substantial financial losses to the employer.
- Repeated violations of safety instructions or failure to perform basic duties despite warnings.
- Disclosure of confidential company information causing losses.
- Misconduct including assault or harassment in the workplace, or being under the influence of drugs or alcohol during work hours.
By the Employee:
- Employer’s failure to fulfill contractual or legal obligations.
- Instructions forcing the employee to perform work fundamentally different from the contract without consent.
- Non-removal of severe safety or health threats by the employer.
Compensation for Arbitrary Dismissal
If a termination is deemed arbitrary, the courts may order the employer to pay compensation based on several factors including the nature of the work, the damage suffered by the employee, and the duration of employment. This compensation will not exceed the equivalent of three months’ wages.
Post-Termination Employment
Following termination or contract expiry:
- Employees are granted a grace period to obtain a new work permit and residency or to leave the UAE.
- Restrictions on obtaining a work permit for one year apply if the employee terminates the contract during the probation period without the employer breaching any contractual obligations.
These provisions are designed to balance the interests of both employers and employees, promoting a fair work environment and protecting the rights of workers across the UAE. This framework supports the country's objective of attracting and retaining top talent by ensuring a just workplace culture.
