For many expats who view Dubai as the ideal location to thrive and advance professionally, getting a wonderful job there may be their objective. However, you also need to familiarize yourself with UAE employment regulations in addition to looking for openings. Understanding every detail is crucial, especially termination of employment UAE.
In this article, we will be talking about termination of employment UAE. You might believe that learning more about termination of employment Dubai. However, the truth is that being aware of this could help you avoid problems when living under an employment visa in the UAE. Let us begin with the information!
Types of Termination in the UAE Labor Law
- Termination without notice:
According to Article 44 of the New UAE Labour Law, if an employee has been the subject of a written investigation for some sort of gross misbehavior, the manager has the authority to terminate the employee’s services immediately and without giving notice.
The inquiry must have been formally announced in writing. Also, specific instances of serious misconduct can include negligence on the part of the employee or employee contract violations that seriously affect the commercial performance or reputation of the organization.
The investigation should include documentation or evidence regarding:
- Assaults on coworkers or the employer.
- The submission of fake credentials or documents.
- Violations of confidentiality agreements.
- Neglect of position for personal gain.
- Driving when under the impact of illicit substances or liquor.
- Violations of safety procedures.
- Engaging in immoral behavior at work.
- Absences lasting longer than 7 working days or 20 nonconsecutive ones.
- Termination with notice:
In accordance with Section 43 of the UAE law termination of employment:
An employment relationship may finish for good cause by any party by giving the other party written notice. According to the contract, the employee must carry out his duties throughout the notice period, which has to be at least 30 days long but not longer than 90 days.
This clause gives employers the legal authority to dismiss an employee for a legitimate reason, serve the necessary notice. Plus, fully discharge any outstanding obligations. Due process should be followed, and any warnings in writing or verbal in the event of non-performance are necessary.
- No valid reason termination:
The company can be liable to pay the employee up to three months’ worth of gratuity because this is an arbitrary termination.
What is statutory notice of termination?
You should be conscious that there are laws and regulations you must abide by if you plan to leave your present job to pursue a different opportunity. This is to ensure that you are following the right procedures. Therefore, if you want to terminate your job contract, you must give the required amount of notice in the UAE. It is required by labour law for termination of employment in UAE, regardless of whether you are an employer or an employee.
A notice period is the period of time prior to your leaving during which your employer is informed. In essence, it starts when you submit your letter of resignation and ends when you quit your work. When leaving a job, it is traditional to give the company a few weeks’ notice so they can prepare. In the same way, employers in the UAE are required by termination of employment UAE law to give a notice period when they choose to terminate an employee.
By informing your employer in advance of your end date, they can make the required arrangements. They can then begin creating a job description, analyzing applications, and interviewing candidates to take your place. Additionally, it gives them a chance to delegate your tasks to various peers so they can do things in the interim.
What is the UAE law of employment termination?
The relationship of employment between workers and their employers is governed by the labor laws of the United Arab Emirates. They seek to ensure both parties’ rights and obligations while facilitating the conduct of business.
In reality, these regulations control pay, leave, bonuses, and working conditions. The labor legislation also seeks to ensure the effectiveness of the labor market. This attracts workers of all levels with the best competencies and skills.
The UAE Labour Law has a number of regulations that govern termination and redundancy. Even though leaving a job is frequently traumatic, knowing your rights as an employee in the event that your contract ends can have a significant impact.
The following are the general guidelines for termination of employment UAE:
- You or your boss may end the contract for any good cause. However, either side must give written notice to the other within the contract’s specified notice term.
- The employment agreement is still in force during the notice time frame, and you are still liable for your full wage.
- Either party shall pay the other party compensation if the other fails to comply with the notice time. For the entirety of the notice period or any remaining portion of it, the pay is equivalent to the employee’s wage.
- In the UAE, if the employer ends the employment relationship, employees have the ability to take one day per week of unpaid time off to look for work.
Employee Rights During Termination
Staff members can either take advantage of the perks or fulfill specific legal requirements depending on the reason for termination. The following are the rights of workers that see immediate termination of employment UAE prior to the end of their labor contract:
- End-of-service benefit: Except in cases where the termination is the result of egregious misconduct, businesses must pay end-of-service benefits to the worker without delay. After one year of service, all employees qualify for a gratuity or EoSB.
- Transportation expenses: According to Articles 79 and 131 of the labor code, if you get let go from your job, the company is responsible for paying for your flight back home.
- Grace period: After an employment visa expires, the UAE government offers a 30-day grace period. A new amendment is starting to appear that would increase the grace period from 90 to 180 days. In some circumstances, you can also ask your employer to postpone canceling your residence permit until you find alternative employment. Your employer will decide whether to allow it or not, though. If the employer does not cancel the visa, you can alert the authorities and start a termination dispute UAE.
- Dues and receivables: Depending on how someone is let go, the fees and due money might change. If you receive a lay off owing to cost-cutting measures (redundancy), you only receive your gratuity and/or notice period pay. If you are wrongly let go, your employer has a duty to give you a gratuity and other benefits.
Calculating End of Service Benefits
The following formula serves to determine end-of-service compensation in accordance with Article 132 of the Employment Law:
- For the first 5 years of service, there is a 21-day pay period.
- 30 days’ salary for each year you add on.
Days spent on leave without pay do not appear in the calculation of service time. Employees may also receive cash in place of unused vacation time.
Notice Period Requirements for Termination in the UAE
Unlimited contract: A limitless contract UAE must finish with at least 30 calendar days’ notice (Article 117). Alternatively, in line with Article 121 of the law, the employee may resign from their employment without providing notice. In the case that the employer violates his or her obligation to the worker, the employer, the business, or the employer’s authorized representative violates that duty.
Any party may terminate the employment contract in accordance with Article 43 for any “legitimate reason,” provided that:
- A side gives written notice.
- 1 to 3 months’ notice is given by the party quitting the job.
It is important to keep in mind that you can check your official contract to see if it includes information on the duration of the notice period. You could also agree with your company to have it waived. Thus, everything depends on your particular circumstance.
Short-term contract: Employees under a short-term contract should get at least 30 days’ notice. You must therefore plan ahead if you want to quit your existing position. Give your employer enough time to prepare so you can finish your leave of absence and start working at the new job.
Article 43 (2) of the local labor code outlines a few key requirements concerning the validity of a job arrangement within the parameters of the notice period:
- Even after the notification period expires, the employment contract is still in force. As a result, the worker has the right to obtain payment in full for that period.
- The employee must additionally turn in time over this period if the employer requires it.
- It is only feasible to waive or reduce the notice period with the consent of all parties and while maintaining the rights of staff members.
To learn more about UAE employment, go to our blogs section.