The UAE Labor Law (Federal Law No. 33 of 2021) provides employees with their rights to be protected from unfair dismissal and illegal termination of contracts. This law ensures the protection of the rights of both employees and employers, so that the process of terminating an employment contract is transparent, fair, and in accordance with the law.
Grounds for terminating an employment contract
According to the Labor Law, an employment contract can be terminated in the following cases:
- Expiration of the contract
If the contract expires after the specified period and is not extended or renewed. - Mutual consent
The employer and employee can terminate the contract by mutual written consent. - Dismissal under notice period
If either party wishes to terminate the contract, it must comply with the notice period and other rules. - Death of employer or employee
The contract can be terminated in the event of the death of the employer or the total physical disability of the employee. - Legal judgments or sentences
If the employee is sentenced to a sentence restricting freedom for 3 months or more. - In the event of bankruptcy or closure of the company
If the employer becomes bankrupt or the continuation of the company is not possible for economic or extraordinary reasons. - Failure to renew the work permit
If the employee fails to meet the conditions required for the renewal of the work permit.
Term of notice of dismissal
The employer or the employee is obliged to give a written notice of one month (30 days) to three months (90 days) to terminate the contract.
Important points:
- The employee will receive full salary during the notice period.
- If one of the parties does not complete the notice period, he must pay the other party the salary for the full notice period.
- In the event of termination of the contract, the employee will be granted one day of unpaid leave per week to find new employment.
Immediate dismissal by the employer
The employer may dismiss the employee immediately in the following cases, provided that the breach of contract or misconduct is proven:
- Presenting forged documents or false identification.
- Causing damage to the company or intentionally damaging property.
- Violating safety instructions.
- Failure to fulfill basic obligations of the contract.
- Disclosing company secrets or using them for personal gain.
- Being drunk or violating ethics while at work.
- 20 days of non-consecutive absence or 7 days of continuous absence.
Immediate resignation by the employee
The employee may terminate the contract immediately in the following cases:
- The employer fails to fulfill the terms of the contract.
- Physical or mental harassment by the employer.
- Forcing the employee to perform work not specified in the contract.
- Forcing the employee to work in dangerous conditions.
Unfair dismissal
Unfair dismissal means dismissing an employee without legal or reasonable cause, which is a violation of labor law.
Additional information and protections
- All dismissal investigations must be in writing and the employee must be formally notified.
- Employees have the right to legal action for their rights under labor law.
This guide is based on the latest details of the UAE labor law. It is important for both employees and employers to be aware of their rights and obligations to avoid any unfair or illegal situations. For more details, visit the website of the Ministry of Human Resources and Emiratization.