Several people desire to travel and work in the United Arab Emirates. Nevertheless, the Middle East is not exempt of rules and law articles related termination of employment in UAE. These laws and rules ensure that when an employer or employee needs to terminate a contract, they can do so without many problems. Nevertheless, these rules might be somewhat hard to remember since they are a lot of cases where one can terminate a contract.
In this article, we will talk about the basics of employee termination rules in UAE. With this information you will be able to know whether you can end an employee´s contract or not. We will cover:
1. Know the main legal ways in which you can terminate a contract
Under the new law, both parties can terminate a contract as long as they follow a notice period in UAE. Moreover, an employer cannot give a termination letter to the employee if the latter files a lawsuit against the employer. UAE law considers this arbitrary dismissal. The main 9 ways an employer may file a termination letter for an employee or an employee can terminate a contract are:
- If both parties consent in writing that they agree to finish the contract.
- If the contract expires or the employer or employee does not renew it.
- In the case, either party wants to terminate it, as long as they follow legal stipulations and the notice period in UAE.
- If, tragically, the employer or employee passes away.
- In the case that an employee has a permanent incapacity to work.
- If the establishment or company the employer works for is closed down.
- If the worker faces a final court judgment and receives a freedom-restricting penalty for less than 3 months (90 days).
- In the event that a worker cannot extend their work permit. As long as it is beyond the control of the employer.
- If the employer goes bankrupt or faces any reasons that prevent the project to continue.
2. Do you know how is a limited and unlimited term contract terminated?
2.1. Limited term contract
For a limited-term contract to end, according to employee termination UAE law, it cancels automatically once it ends. This is unless both parties consent to extending it or converting it to an unlimited-term contract.
Firstly, an employer might hand a termination letter for the employee if they can prove that the employee breached the contract. In other words, they can terminate it if they prove that they breached one of the grounds that articles 120 and 88 provide for.
On the other hand, an employee can also go forward with termination of employment in UAE. This might happen if the employer does not honor the obligations that their contract stipulates. Moreover, if the employer assaults the employee, according to employee termination rules in UAE, the employee might lawfully resign without notice.
2.2. Unlimited term contract
According to employee termination UAE law, an employer or employee can also terminate an unlimited-term contract under certain situations.
An employer can terminate the contract for a “valid reason”. Employee termination rules in UAE do not specify what exactly a “valid reason” is. Nevertheless it must be related to poor performance or misconduct. Moreover, an employer can terminate a contract for acts that amount to gross misconduct that articles 120 and 88 provide for.
On the other hand an employee can also terminate an unlimited term contract. This may happen if they provide a notice period in UAE as per their contract (1-3 months). In addition to this, they can also resign without the notice period for any reasons that article 121 stipulates.
3. How can Connect Staff help you follow the rules to terminate a contract?
Even knowing the basics of employee termination UAE law, many employers and even employees can have trouble following it. They might be exceptions where termination of employment in UAE is not possible even if it falls under these examples.
Because of this and many other reasons, we recommend you hire our HR services here at Connect Staff. With us, you will be able to follow employee termination UAE law to a tee without any problems. You can call us at +971 43 316 688 to get in contact with our advisors. Moreover you can also email them at contact@connectstaff.ae.
