Know Your Rights if You’re Terminated in the UAE

Your Rights if Terminated Work Contract in UAE – Dubai Lawyer & Dubai Law Firm

* UAE is one of the hottest job markets in the world. Hundreds of people come to the UAE every year in the hope of making bigger careers. The people-friendly work environment, work-life balance, and handsome pay cheques are the primary reasons for the large expat population. Moreover, carefully formulated labour laws in the UAE ensure labour market remains conducive to both employers and employees.

* The latest amendment in labour law that came into effect on 2^nd February 2022 also indicates how the UAE government is constantly evolving the law to suit global standards. The amendment touched upon all aspects of employment law, including eliminating unlimited contracts, provisions, introducing a new working week, minimum wage, and termination. It aims to safeguard the rights of all working people from the public and private sectors.

Cases of Dismissal of the Worker without Notice

* The new laws also brought several new guidelines for the termination of an employee in the private sector without notice. (Article 44).

1. The Employer’s breach of his obligations towards the Worker stipulated in the contract, this Decree-Law, or the decisions issued in implementation thereof, provided that the Worker has notified the Ministry fourteen (14) Working Days prior to the date of leaving Work, and without the Employer removing the effects resulting from this breach despite being notified of the same by the Ministry.
2. It is proved that the Employer or his legal representative has assaulted the Worker or subjected him to violence or harassment during Work, provided that he informs the concerned authorities and the Ministry within (5) five Working Days from the date of his ability to report.
3. If there is a serious danger in the Workplace that threatens the safety or health of the Worker, provided that the Employer has known of its existence, and no measures were taken to indicate its removal. The Implementing Regulation of this Decree-Law shall specify the controls of serious danger.
4. The Employer assigning the Worker to carry out Work that is fundamentally different from the Work agreed upon under the Employment Contract, without the Worker’s written consent to the same, except for cases of necessity in accordance with the provisions of Article (12) of this Decree-Law.

 Notice for Termination of the Employment Contract

1. Either party to the Employment Contract may terminate the contract for any legitimate reason, provided that the other party is notified in writing and commits to work within the Notice Period agreed upon in the contract, and provided that the period is not less than (30) thirty days and not more than (90) ninety days.
2. The Employment Contract shall continue to be effective during the Notice Period referred to in this Article, and shall be terminated upon expiry of the period. The Worker shall be entitled to his full Remuneration for that period according to the last salary he was receiving, and he shall work during that period if the Employer asks him to do so. It shall be permissible to agree on an exemption from the notice condition or reduce this period while preserving all the rights of the Worker for the Notice Period agreed upon in the Employment Contract. The Notice Period shall be the same for both parties unless it is for the benefit of the Worker.
3. The party who did not comply with the Notice Period shall pay to the other party compensation under the name “payment in lieu of notice”, even if the failure of notice did not result in harm to the other party. The compensation shall be equal to the Worker’s Remuneration for the entire Notice Period or the remaining part thereof.
4. The payment in lieu of notice shall be calculated according to the last salary that the Worker was receiving if the Worker receives Remuneration by month, week, day or hour, and according to the average daily wage referred to in this Decree-Law if the Worker receives Remuneration on a piecework basis.
5. If the Work is terminated by the Employer, the Worker shall have the right to be absent during the Notice Period for one unpaid Working Day per week, in order to search for another job. The Worker may specify the day of absence provided that he informs the Employer of the same at least (3) days prior to the day of absence.

End of service benefit

* The employers should immediately pay end-of-service to the employee, except where the termination is due to gross misconduct. All employees who have completed one year of service become eligible for gratuity or end-of-service benefits. According to Article (51) of employment law, the end of service remuneration is calculated as follows:

1. 21 days’ pay for each year of the first five years of service.
2. 30 days’ pay for any additional year.

* Days, where the worker has taken leave without pay, are not calculated in a service period. The employees are also entitled to get cash in lieu of unused leaves.

Notice period

* All employees intending to leave the organization must serve a notice period that is agreed upon while entering the contract. If the employee leaves the company without serving the notice period, they must compensate the employer. The same goes for the employer. In UAE, the maximum limit of the notice period is set to 3 months. Your employer has no legal right to prevent you from leaving the company after you serve 3 months’ notice period. The employee is entitled to receive full wages during the notice period.

* In some cases, the employee can also terminate the contract without serving the notice period if:

• The employer fails to pay wages for a period of more than 60 days.
• The employee has filed a court complaint against an employer who has failed to employ the employee.
• The final ruling for a complaint is in favor of the employee (referred to labour court by MOHRE).

How can you raise a wrongful work termination case in UAE?

All legally serving employees in UAE have the right to raise their case with MOHRE. There are multiple ways to file a complaint. You can register your complaint on the MOHRE website or call the helpline number 800 60, or you can download the MOHRE app and follow the guidelines. To initiate the process, you will be asked to create an account first, with the help of your Emirati ID.

By Sr. Legal Counsel

Islam Adam