Dismissal of Employees in Dubai

The manner in which employees are dismissed in Dubai is governed by the UAE Labor Law. The law offers comprehensive rules for the circumstances in which an employment agreement can be terminated as well as the compensations the employee is entitled to.

The UAE Labor Law applies to all employees working in Dubai, except for those who work in areas like the Dubai International Financial Center. If you own a company in Dubai and want to hire employees or manage employment contracts, our Dubai lawyers can help you.

Employment contract termination in Dubai

An employment contract concluded in Dubai can be terminated in the following cases:

– the two parties agree to terminate the contract and the employee consents to this in writing;

– when one of the two parties wishes so, provided that the legal requirements for the notification period are observed (unlimited-duration contracts were abolished: all contracts are now fixed-term under Federal Decree-Law No. 33 of 2021);

– upon the expiration of the contractual period, if the contract is not extended according to law.

The employment contact is also terminated upon the death of the employee or if he/she is unable to perform the work for which the contract was concluded. The employment agreement is not terminated as a result of the employer’s death. The notice period for the termination of an employment contract is between 30 and 90 days, as agreed in the contract.

The employer can terminate the employment contract without notice and without severance pay under certain conditions. Some of these include:

– if the employee adopts a false identity or if he submits forged documents;

– if the employee is hired for a probation period and is dismissed during this period (since 2022 this requires 14 days' written notice);

– if the employee causes substantial material loss to the employer and the latter informs MOHRE of the incident within 7 working days;

– if the employee fails to perform his/her duties under the employment agreement and persists to do so even after repeated warnings;

The employee can terminate the employment agreement without notice in the following cases:

– if the employer does not fulfill its obligations toward the employee as stipulated by law;

– if the employer or its representative assaults the employee.

Our Dubai attorneys can give you more information about the grounds for dismissal you may invoke as an employer in Dubai. Likewise, if you are an employee who has been laid off, we can help you claim your legal compensations. 

The employee’s rights in the event of dismissal

The Labor Law gives the employee certain rights after his/her employment contract has been terminated by the employer. They are called end of service entitlement and they include:

– notice period with full pay;

– the payment of any unused holiday balance;

– repatriation expenses, if applicable;

– end of service gratuity: a variable amount based on the length of service.

For more information about employment in the United Arab Emirates, please do not hesitate to contact our Dubai law firm.