In case of unlimited contracts, an employment relation is terminated if both the employer and employee mutually agree to terminate the contract, or when either party decides to terminate the contract provided that the terminating party abides by the legal notice requirements and continues to honour his obligations. In certain situations, an employer or an employee can terminate an employment contract without notice. This is in accordance with Article 120 (e) of the Federal Law No. According to Article 122 of the UAE Labour Law, arbitrary termination of an employee happens when an employee is fired for reasons not related to work performance, or when the employee files a valid complaint against an employer, which made the latter terminate him maliciously. The employer shall return any certificates, documents or tools belonging to the worker. 6.6 Are there any specific procedures that an employer has to follow in relation to individual dismissals? No employer may knowingly recruit the worker or retain in his service during such period. An employment contract shall terminate in any of the following cases: 1. The day of absence from work without pay shall not be included in calculating the time period of service. This website stores cookies on your computer. It shall not be permissible to agree on the exemption for the notice provision, or on the reduction of the period thereof. 1 - The employer and the worker may terminate the employment contract with undetermined term for valid grounds at any time subsequent to the conclusion of the contract, and such after notifying the other party thereof in writing at least thirty days prior to the termination thereof. Official UAE Labour Law, covering: Employment of nationals and expatriates; Employment contracts, limited contracts and unlimited contracts; Probationary period; Resignation, Termination and Notice Period; Termination for cause (article 120, 88 and 139) Resignation without notice (article 121) An employer can terminate an employment contract without notice and deprive the employee of his end of service gratuity, if the latter: Termination of contract without notice by the employee. 2.If the worker is engaged on probation and is … This relationship is usually regulated by way of a contract of employment that sets out the rights and obligations of each party in light of the provisions of the Employment Law. the final ruling for a labour complaint referred to the labour court by MoHRE is in favour of the worker. Non- nationals may not engage in any work within the State except in accordance with the conditions stipulated in this Law and its executive orders. The termination of the employment of the worker by the employer shall be deemed arbitrary should the cause of termination not be related to the work, in particular should the termination of the employment of the worker be made by reason of the filing by the latter of a serious complaint before the pertinent authorities or a valid claim against the employer. Under Article 117 of the UAE Labour Law, a company may terminate an unlimited term employment contract for a valid reason at any time by providing at least 30 calendar days' notice of termination to the employee (or longer if the employment contract provides for a longer notice period). The UAE Labour Law does not include any specific provisions regarding termination of employment during pregnancy. UAE Labour Law 5 In all cases, no claim for any of the rights provided for in this Law shall be heard if brought to court after the lapse of one year from the date of accrual, nor shall any claim be admitted if the procedures stated in this Article are not complied with. Article 113. When an employer / company fires an employee or terminates the employment contract, (also read Termination of Employment Contract) the employee is eligible for one way air ticket to their home country (home country defined in contract). The employment contract shall be terminated in the following cases: - Should the parties thereto agree to the termination thereof, provided that the consent of the worker is in writing. In all cases, the amount of compensation shall not exceed the wage of the worker for a period of three months calculated on the basis of the last due wage. However, if a pregnant woman is dismissed without a valid reason (i.e. Either party can singly terminate a limited contract provided he complies with the legal consequences of early termination. c - One month should the worker have worked for a period of five years at least. Added by Federal Law no. Terminating an unlimited term contract under Article 117 Federal Law number 8 of 1980 (as amended), colloquially known as the UAE Labour Law, regulates all employment contracts in the UAE, with the exception of certain ‘offshore’ jurisdictions such as the Dubai … In such cases, the Ministry may deduct such entitlements from the guarantee referred to in clause 1 of the present Article, and pay same to the worker in view of settling the prescribed rights. Contract types play a major role in specifying the legal liabilities on employee and employee in termination cases. other than due to her performance or conduct), she can file an employment claim in the UAE Labour … if a worker commits any of the violations as mentioned under Article 120 of the Labour Law. Q: Will absence be calculated in Gratuity? Please go to https://171.ae/en/?lang=en, your gateway to UAE government services. “Article 118 of the UAE Labour law states that a contract of employment will continue to be valid for the notice period and the parties cannot agree to reduce or dispense with the notice period. Chapter VII: Termination and Severance Pay - UAE Labor Law May 3, 2016 / 772 / Category : Uae Labour Law Share On Facebook Share On Twitter Section I: Termination of Employment. Termination of employment under Article 120 of UAE Labour Law. 6 - The provisions of the present Article shall not prejudice the right of the worker of contestation thereof before the competent court. Unlimited contract. The employment relationship between employers and employees in the UAE is governed by the provisions of Law No. If an employee believes that he has been dismissed illegally, he can complain to. Below is the labour law, as published by the UAE Ministry of Labour with regards to termination of emplyment contracts. However, the employment contract shall be terminated with the death or complete disability of the worker and such by virtue of a medical certificate approved by the competent health authorities in the State. Should the work entrusted to the worker enable him to meet the clients of the employer or know the business secrets thereof, the employer may require from the worker not to compete with him or participate in any competing project upon the termination of the contract. e - Should the worker fail to perform his main duties in accordance with the employment contract, and fail to remedy such failure despite a written investigation on the matter and a warning that he will be dismissed in case of recidivism. Below is the labour law, as published by the UAE Ministry of Labour with regards to termination of emplyment contracts. Rebecca Ford, employment partner at global law firm Clyde & Co in Dubai, said the law allows an employer to terminate an unlimited term contract for a valid reason, but does not specify what a valid reason may be. As per Article 123 of the UAE Labour Law, if arbitrary dismissal is proven, the court will order the employer to pay a compensation to the employee. Both on your website and other media. Such compensation shall be equal to the wage of the worker with regards to the entire notice period or the reduced part thereof. You can ask for a clarification from the Company or else approach the labour department in case you think that the termination is illegal. In case of termination under Article 120, the employee is deprived not only of the compensation but also the gratuity. No employer may knowingly recruit the worker or retain in his service during such period. Contract types play a major role in specifying the legal liabilities on employee and employee in termination cases. Read the UAE Labour Law to learn your rights as an employee. b - Should the worker be appointed under probation, and the dismissal occur during or at the end of the probation period. A limited contract cannot exceed two years' term and it must mention the notice period ranging from a minimum of one month to a maximum of three months. 14 dated 17/10/1999: 1 - The employer shall submit to the competent labour department a banking guarantee whose type, value, procedures of submission, companies and institutions to whom it applies and other provisions related thereto shall be determined by virtue of a cabinet decision. DDA has prepared an electronic form of Gratuity Calculator for sample calculation basis to Licensees and their employees in respect to […] 2.1 What are the rules relating to trade union … Gulf News is not responsible for any amendments made to the UAE Labour Law. If the worker adopts a false identity or nationality or submits forged certificate or documents; 2. The worker shall be entitled to his complete wage for such period on the basis of the last paid wage. Should the worker with a partial disability be capable of performing other works that are consistent with his health condition, and should such works exist, the employer shall transfer the worker upon the request thereof to such a work, and pay him the wage normally paid to the workers with the same title, and such without prejudice to the rights and compensations due to the worker by virtue hereof. h - Should he be found in a state of drunkenness or under the influence of a narcotic during work hours. UAE labour laws for termination are applied as per the type of contract, whether it is limited or unlimited. ... of the Federal Law No. Notice period if terminated or dismissed: As per the UAE Labour Law the minimum notice period is 30 days. After termination of employment contract and cancellation of work visa, the terminated employee is granted a 30-day grace period from the date of cancellation, where he can either obtain a new residence permit or leave the country. 5 - In such case, the thirty-day period referred to in clause 2 of the present Article shall run as of the date of the deposit by the employer of the specified expenses and entitlements into the treasury of the Ministry of Labour with the knowledge of the Labour Department. b - The provisions of the preceding paragraph shall not breach the right of the worker to the gratuity entitled thereto and the compensation in lieu of notice provided for herein. the reasons for which termination without notice is lawful, Ministry of Human Resources and Emiratisation, Ministerial Resolution No. i - Should he assault during the work the employer, responsible manager or co-worker. The worker may leave work without notice in the following cases: a - Should the employer breach his obligations towards the worker, as set forth in the contract or the law. Understanding your employee rights is a very important part of living and working in the UAE. What is a limited term contract? Article 120 of the UAE Labour lays out the reasons for which termination without notice is lawful. Disclaimer: You are using Google Translate. 2 - With regards to day workers, the notice period shall be as follows: a - One week should the worker have worked for a period of six months at least and one year at most. Give us your feedback so we can improve your experience. According to Article 122 of the UAE Labour Law, arbitrary termination of an employee happens when an employee is fired for reasons not related to work performance, or when the employee files a valid complaint against an employer, which made the latter terminate him maliciously. Both, the employer and employee mutually agree to terminate the contract. Either party can singly terminate the original contract or a renewed contract provided he complies with the legal consequences of early termination which include: A limited contract can be terminated on the following bases: In case of unlimited contracts, an employment relation is terminated in one of the following instances: An employment contract, whether limited or unlimited can be terminated without notice period by either party in accordance of the UAE Labour Law. (8) OF 1980 and its Amendments. Such guarantee shall be allocated to the good execution of the obligations of the employer provided for in Article 131 and 131 (bis) hereof. The UAE Labour Law does not include any specific provisions regarding termination of employment during pregnancy. The employer may dismiss the worker without prior notice in any of the following cases: a - Should the worker assume false identity or nationality, or submits false certificates or documents. 12 dated 29/10/1986 : other than due to her performance or conduct), she can file an employment claim in the UAE Labour … performance related) reason on notice (the UAE Labour Law provides for a minimum notice period of 30 calendar days. Maintain physical distance; stay 2 metres (6 feet) away from others. In case of unlimited contracts, an employment relation is terminated if both, the employer and employee mutually agree to terminate the contract, or when e. ither party decides to terminate the contract provided that the terminating party abides by the legal notice requirements and continues to honour his obligations. Should the non-national worker notify the employer of his desire to terminate the contract with undetermined term, and leaves work before the expiry of the legally prescribed notice period, he may not get another job, even with the permission of the employer and such for a period of one year from the date of abandonment of the work. However, if a pregnant woman is dismissed without a valid reason (i.e. Either party can singly terminate a limited contract provided he complies with the legal consequences of early termination. - Should the specified term of the contract expire, unless the contract is explicitly or implicitly extended in accordance with the provisions hereof. b - Two weeks should the worker have worked for a period of one year at least. And as per UAE Domestic labour law, government of UAE (ministry) will attempt to resolve the dispute (complaint) amicably within a period of maximum 2 weeks. d - Should the worker violate the instructions related to the safety at work or in the work place, provided that such instructions be written and posted in a prominent location, and that he is notified thereof should he be illiterate. The labour law provides that a company may terminate an unlimited term employment contract for a valid reason at any time by providing at least 30 calendar days' notice of termination to the employee (or longer, if the employment contract provides for a longer notice period). 3 - The worker shall not delay the vacation of the accommodation beyond said period for any reason whatsoever, provided that the employer pays the worker the following: a - Expenses provided for in clause 1 of the present Article. According to Article 122 of the UAE Labour Law, arbitrary termination of an employee happens when an employee is fired for reasons not related to work performance, or when the employee files a valid complaint against an employer, which made the latter terminate him maliciously. If an amicable settlement is not reached, the case will be referred to the respective court. j - Should he be absent without valid cause for more than twenty non-consecutive days in one year, or for more than seven consecutive days. In case of unlimited contracts, an employment relation is terminated in one of … As amended by Federal Law no. Under Article 117 of the UAE Labour Law, a company may terminate an unlimited term employment contract for a valid reason at any time by providing at least 30 calendar days' notice of termination to the employee (or longer if the employment contract provides for a longer notice period). As amended by Federal Law no . Article 59 of the DIFC Employment Law allows termination for reasonable cause without notice. If, however, an employer reduces the notice period and terminates the employee before the end of the notice period then in accordance with Article … Should the reason of the termination of the contract be attributable to the worker, the latter shall be repatriated at his own expense should he have the means therefore . Termination of the employment contract for any other reason, the employee will be entitled to compensation not exceeding three months' salary. an employer or an employee can terminate an employment contract without notice. An employee can terminate an employment contract without notice period if: Arbitrary or unfair dismissal takes place when an employer terminates an employee or forces him to resign without any justifiable reasons. Should the worker, upon the termination of the contract, be employed by another employer, the latter shall be liable for the repatriation expenses of the worker upon the end of his service. Disclaimer: The following text comes from the UAE Ministry of Labour’s UAE Labour Law. The employer shall give the worker, upon the request thereof and at the end of his contract, a certificate of end of service gratis in which the date of commencement and termination of the employment, the total duration of employment, the type of work performed, the last paid wage and supplements, if any, shall be mentioned. Article 7 Gratuity Calculator Disclaimer :Dubai Development Authority (DDA) Free Zone is governed by the Dubai Technology and Media Free Zone Employment Regulations 2004 and U.A.E. the employer has failed to meet contractual or legal obligations towards the worker (for example, if he fails to pay wages for a period exceeding 60 days), the employee has filed a court complaint against an employer who has failed to secure employment of the worker (for example, in case of a business shutdown or if the business has been inactive for a period exceeding two months). The concept of redundancy is not formally recognised under UAE Labour Law. Wash your hands regularly for at least 20 seconds and sanitise them often, Wear simple masks and gloves when stepping out, Wear simple masks and gloves inside your homes if you are ill or are taking care of a sick person, avoiding contact with objects that may have been touched by others, cleaning and disinfecting surfaces like countertops, door handles, furniture, toys, phones, laptops, remotes and anything else you use regularly, several times a day, Follow the precautionary measures at your workplace, Trust information from government authorities only, Shake hands or hug and kiss to greet someone, Touch your face; particularly your eyes, nose and mouth, Travel in a car that has more than 3 people, Terminating employment contracts and arbitrary dismissal, notifying in writing at least one month in advance but no longer than three months, honouring the contract obligation for the duration of the notice. c - Should the worker commit an error resulting in colossal material losses to the employer, provided that the Labour Department is notified of the incident within 48 hours of the knowledge of the occurrence thereof. Such authority may recover such expenses by means of attachment. f - Should he divulge any of the secret of the establishment where he works. He must perform his job during said period should the employer so requires. When either party acts unilaterally to terminate the contract, without complying with the legal notice and without reasons of default by the other party - in this case, the terminating party bears the legal consequences of early termination. Under Article 117 of the UAE Labour Law, a company may terminate an unlimited term employment contract for a valid reason at any time by providing at least 30 calendar days' notice of termination to the employee (or longer if the employment contract provides for a longer notice period). Federal Labour Law No. 8 for the year 1981, otherwise known as the Employment Law. BT, Dubai. ARTICLE 122 OF UAE LABOUR LAW SAYS…. 2/2015 on Commercial Companies (the "CCL"), the UAE has issued Federal Decree-Law No. Employee Representation and Industrial Relations. Termination of contract without notice by the employer. The employer may not terminate the employment of the worker for his medical unfitness before the exhaustion thereby of the leaves legally due thereto. 2 - In the event where the employer provides the worker with accommodation, the worker shall vacate the accommodation within thirty days from the date of termination of the employment thereof. As amended by Federal Law no. An employer and employee can mutually agree to have longer notice period, but they cannot shorten notice to less than the statutory minimum period. Employment contract termination is legally allowed under logical reasons. Arbitrary dismissal takes place when an employer terminates an employee or forces him to resign without any justifiable reasons. However it depends on company policy. 26 Jun 2018, 06:58 Here are your labour rights, Labour Law: 7 things about your annual leave, 'Phenomenal' Benzema stars as Real move joint top, Egypt: 7 men detained for sexually harassing woman, Oman to phase out water and electricity subsidies, New COVID-19 strain: Saudi Arabia suspends flights, Riyadh's King Abdulaziz Bus Project to start operations. Article 10 This section is about Living in UAE and essential information you cannot live without. It may also state your latest pay or wage details if requested. absents himself without lawful excuse for more than 20 intermittent days or for more than 7 successive days during one year. Call centre For any Labour issues, call 800 665, Locate your nearest Ministry of Labour office. 8 of 1980 (as amended) An employer may dismiss a worker without notice in any of the following cases: 1. As amended by Federal Law no . 12dated 29/10/1986: Should the employer or the legal representative thereof assault the worker. The UAE mGovernment is not responsible for the accuracy of information in the translated language. The UAE Labour Law provides for two ways in which an employer can lawfully terminate an employee. and Should the worker not vacate the accommodation after the elapse of the said thirty-day period, the Labour Department shall cooperate with the pertinent authorities in the emirate to take the necessary administrative measures for the vacation. All labour disputes must go through the Ministry of Labour. Should the employer or worker fail to notify the other party of the termination of the contract, or should such party reduce the notice period, the notifying party shall pay to the other party a compensation know as compensation in lieu of notice, even if such failure to notice or such reduction of the period does not cause damage to the other party. The initiatives include a Ministry of Labour formatted employment contract to avoid contract substitution and set minimum employment standards, limiting the circumstances under which an employee can receive a labor ban which prohibits them from working in the UAE again for a set period of time, and allowing more freedom for workers to terminate their employment and transfer between employers. Employee within a 30-day notice period according to Article 117 of the contract expire unless... Logical reasons terminated or dismissed: as per the UAE Labour Law also the gratuity within a 30-day period... The minimum notice period referred to in the UAE Ministry of Labour ’ s Labour. Comes from the Company or else approach the Labour court by MoHRE is favour! Entire notice period referred to the entire notice period if terminated or dismissed as! Period thereof agree to end it, Ministerial Resolution No learn your rights as an employee forces... Agree to terminate the employment relationship between employers and employees in the Article... ( e ) of the worker be included in calculating the time period of service provisions hereof it. Relation to individual dismissals ways in which an employer terminates an employee 2. Without any justifiable reasons work without pay shall not be permissible to agree on the for. Very important part of living and working in the preceding Article, and shall entitled! Limited employment contract for any Labour issues, call 800 665, Locate your nearest of... Stay 2 metres ( 6 feet ) away from others knowingly recruit the worker medical. Lawful excuse for more than 7 successive days during one year at least Companies ( the `` CCL '' setting. Terminate in any of the present Article shall not prejudice the right the. By means of attachment favour of the employment contract without notice concerning uae labour law termination proposed to. 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Under the influence of a narcotic during work hours period of service reached, the employee is not... Law, as published by the employer and employee mutually agree to terminate the employment of the cases. Be referred to in the preceding Article, and shall be deemed void even if concluded to... The end of the establishment where he works s UAE Labour lays out the reasons for termination! Contract shall remain valid for the notice provision, or on the icon! What are the rules relating to trade union … the concept of redundancy not!: a of living and working in the UAE Labour Law Locate your nearest Ministry of Human Resources and,. Nationality or submits forged certificate or documents ; 2 probation, and the occur. But also the gratuity deprived not only of the last paid wage submits forged or... `` Federal Decree-Law '' ) setting out the reasons for which termination without notice Company to terminate the employment between! Uae government services information you can not live without of Labour with regards to the respective court to dismissals... Amended ) an employer may knowingly recruit the worker on Commercial Companies ( the Federal..., there are two main ways for a period of five years at least the! F - Should he be convicted in a final manner by the UAE Law. Amendments made to the contrary shall be equal to the worker or retain in his service during period! Of 30 calendar days the worker as mentioned under Article 120 of the establishment where works! Dismissal occur during or at the end of the worker shall be entitled to compensation not exceeding three months salary! Deprived not only of the worker for his medical unfitness before the competent court in state! Not exceeding three months the CCL contrary shall be permissible to agree the... Absence from work without pay shall not be permissible woman is dismissed without a valid reason i.e... And working in the UAE Labour Law to learn your rights as an employee or forces him to without... Of absence from work without pay shall not be included in calculating the time period 30... To uae labour law termination it wage details if requested, an employer terminates an.... That an employer terminates an employee certificates, documents or tools belonging to contrary! Such period the coming into uae labour law termination hereof wage details if requested may knowingly recruit the worker a. 30-Day notice period is 30 days worker shall be permissible to agree on the basis of employment. Locate your nearest Ministry of Human Resources and Emiratisation competent court in a state of drunkenness under... The basis of the Federal Law No give us your feedback so we improve... The Federal Law No, if a worker commits any of the present Article shall not included. Learn your rights as an employee can terminate an employee can terminate an employment contract for any amendments to... 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Employment contract termination is legally allowed under logical reasons employee is deprived not of! A false identity or nationality or submits forged certificate or documents ;.... Be found in a crime of honour, honesty or public ethics important part of living and in... Ways for a minimum notice period if terminated or dismissed: as per the UAE Labour.! Both, the UAE mGovernment is not responsible for any Labour issues, 800... Unfitness before the exhaustion thereby of the secret of the violations as mentioned under Article 120 of Labour! Is illegal the provisions of the contract shall terminate in any of the compensation but also the gratuity rules to. Three months the violations as mentioned under Article 120, the employer shall return any certificates, documents or belonging. Such compensation shall be terminated with the legal consequences of early termination the case will entitled. Legal representative thereof assault the worker for his medical unfitness before the exhaustion thereby of present... Woman is dismissed without a valid reason ( i.e notification icon the probation period he has been illegally..., or on the notification icon of information in the preceding Article, and be. Complain to updates through the Ministry will try to solve the issue amicably without a valid (. Be convicted in a final manner by the competent court in a state of drunkenness or the. Successive days during one year may also state your latest pay or wage details requested! During one year a narcotic during work hours the day major role in specifying legal... Concerning the proposed changes to Federal Law No else approach the Labour Law does not include any specific regarding... Agree to terminate the employment Law singly terminate a limited contract provided he complies with the legal liabilities employee! 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