Legislators in the UAE established a set of rules to govern and organize the issue of ending an employment contract, whether it was initiated by the employer or the employee. This is done to make sure that it was legal provided certain conditions were met, otherwise it will be viewed as an arbitrary dismissal. The UAE legal job contract provides details regarding the conditions applied for the termination of an employee.
According to the UAE Digital Government website, either party may cancel an employment contract under the country’s new labor law as long as they provide the other party with a reasonable amount of notice and follow all other applicable legal requirements.
If an employee files a valid grievance with the Ministry of Human Resources and Emiratisation (MoHRE) or files a lawsuit against the company, the termination would be deemed arbitrary.
According to Article 42 of the Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations in the Private Sector, also known as the “UAE Labour Law,” the following circumstances may result in the termination of an employment contract:
1-If the term of the contract expires and is not extended or renewed.
2-If both the employer and employee mutually agree in writing to end the contract.
3- In the event of the employer’s death if the subject of the contract is related to its entity.
Length of the Termination Notice
According to Article 43, the employment contract may be terminated by any party for any “legitimate reason,” provided that:
1- The opposite party receives a written notice, and
2. A notice of termination of one month (30 days) to three months is given (90 days).
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