UAE: Understanding Employee Rights After Being Fired, Notice Period and More

Asma Ahmed - | UAE

In the UAE, either an employer or an employee can end a job contract by adhering to the notice period specified in their

Situations for Termination of Employment Contract

Employment transitions, whether due to termination or resignation, involve a complex process where the notice period plays a crucial role in ensuring a smooth departure for both employers and employees. This period is essential for a seamless and organized handover of responsibilities, protecting the interests of all parties involved.

In the UAE, either an employer or an employee can end a job contract by adhering to the notice period specified in their agreement. This requires giving the other party written notice, facilitating an orderly exit or transition. Understanding the intricacies of the notice period is essential for maintaining an effective work environment. This article delves into the details of the notice period in the UAE, exploring the legal framework and best practices for both employers and employees.

Under UAE labor law, there are several scenarios in which an employment contract may be terminated. Firstly, a contract may naturally come to an end if its term expires and it is not extended or renewed. Secondly, termination can occur if both the employer and employee mutually agree in writing to end the contract. Thirdly, either party may unilaterally decide to terminate the contract, provided they observe the termination provisions and the agreed-upon notice period.

Additionally, the contract may be terminated if the employer dies and the contract is tied to their entity, or if the employee dies or becomes fully and permanently unable to work, as certified by a medical entity.

Other termination scenarios include the worker receiving a final court judgement involving a freedom-restricting penalty for at least three months, the permanent closure of the establishment in accordance with UAE legislation, the employer becoming bankrupt or insolvent, or facing economic or exceptional reasons that prevent the continuation of the project. Finally, termination may occur if the worker fails to meet the conditions for renewing their work permit due to reasons beyond the employer's control.

Conditions for Termination with Legitimate Reasons

Employees have specific rights upon termination. They can terminate the contract without notice if the employer fails to fulfill the conditions outlined in the employment contract, assaults the employee, or assigns them work without their consent. If an employer does not serve the notice period to the employee, they must provide monetary compensation equal to the employee's salary for the entire notice period or the remainder thereof. This ensures that employees are not unfairly disadvantaged if their employment ends without adequate notice.

Either party can terminate the employment contract for any 'legitimate reason' if the following conditions are met: a written notification must be given to the other party, and the terminating party must serve a notice period ranging from one month (30 days) to three months (90 days).

During the notice period, the work agreed upon in the contract must be performed, and the worker is entitled to their full wage as per the contract. If terminated by the employer, the worker is entitled to one unpaid leave day per week during the notice period to search for another job. If a party fails to serve the notice period, they must pay the other party a 'notice period' allowance, which is equal to the worker’s wage for the full notice period or proportional to the remaining period.

Understanding and adhering to the notice period requirements in the UAE is essential for both employers and employees. It ensures a structured and fair transition, safeguarding the interests of all parties and maintaining a harmonious work environment. The notice period provides a critical buffer for the organized handover of duties and responsibilities, which is pivotal in mitigating disruptions and maintaining productivity. Employers and employees alike benefit from clear guidelines and practices surrounding the notice period, as it fosters transparency and mutual respect during employment transitions.

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Asma Ahmed
Asma Ahmed
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