If you work in the United Arab Emirates (UAE), it is important to know your rights as an employee. One of the most significant concerns for employees is what happens if the company terminates your employment. The UAE Labour Law outlines the regulations that employers must follow when terminating an employee’s contract.
According to Article 43 (1) of the UAE Labour Law, either party to an employment contract may terminate the contract for a “good cause” by giving the other party notice in writing at least 30 days before the termination date. Good cause includes factors such as misconduct, poor performance, or a breach of company policies. If the employer terminates the contract without a good cause, they will be required to pay the employee compensation as per Article 123 of the law.
If you are an employee in the UAE and your employer terminates your contract, it is important to understand your rights and the procedures that must be followed. This includes receiving your end-of-service gratuity payment, which is calculated based on your salary and length of service. Additionally, your employer must cancel your UAE visa within 30 days of the termination date. Understanding your rights and the procedures involved can help you ensure that your employer follows the law and that you receive the compensation you are entitled to.
Termination of Employment in UAE
If your employer terminates your employment in the UAE, it is important to be aware of your rights and entitlements. Here are some key things to know about termination of employment in the UAE.
Reasons for Termination
Under UAE law, an employer can terminate your employment for a valid reason. Valid reasons for termination include poor performance, misconduct, or a breach of the terms of your employment contract. If your employer terminates your employment without a valid reason, you may be entitled to compensation.
Notice Period and Pay
Your employment contract will specify the notice period required for termination. If your employer terminates your employment without giving you the required notice, you may be entitled to compensation. Similarly, if you terminate your employment without giving the required notice, your employer may be entitled to compensation.
During the notice period, you are entitled to an unpaid leave of one day per week to search for another job. However, the notice period may be reduced or exempted on mutual agreement between you and your employer.
End of Service Benefits
When your employment is terminated, you may be entitled to end of service benefits. These benefits include gratuity pay, which is calculated based on your length of service and your final salary, and any unused annual leave. Your employer is also required to cancel your UAE visa within 30 days of the termination date.
It is important to note that the specific details of your entitlements will depend on your individual circumstances and the terms of your employment contract. If you have any questions or concerns about your rights and entitlements, it is recommended that you seek legal advice.
Legal Considerations
If your company terminates your employment in the UAE, there are several legal considerations that you should be aware of. Understanding the labour law regulations, termination for cause, and termination without cause can help you protect your rights and ensure that you are treated fairly.
Labour Law Regulations
In the UAE, the Federal Law No. 8 of 1980, also known as the UAE Labour Law, governs employment relationships. This law outlines the rights and obligations of both employers and employees, including provisions related to termination of employment contracts.
Under Article 115 of the UAE Labour Law, an employer can terminate an employee’s contract for cause, such as if the employee commits a serious breach of their duties or engages in misconduct. Employers must provide written notice of the termination and pay any outstanding wages and end-of-service benefits.
Termination for Cause
If your employer terminates your employment for cause, they must provide clear evidence of your misconduct or breach of duties. Examples of misconduct can include theft, fraud, or assault, while a breach of duties may include consistently poor performance or refusal to follow company policies.
If you believe that your termination for cause was unjustified, you may have the right to challenge it through the UAE Labour Court. However, it is important to note that the burden of proof rests with the employer, and the court will only overturn a termination for cause if it finds that the employer did not have sufficient evidence to justify the termination.
Termination without Cause
Under Article 120 of the UAE Labour Law, either the employer or the employee can terminate an employment contract without cause by providing written notice. The notice period varies depending on the length of service, with longer notice periods required for employees who have worked for the company for a longer period of time.
If your employer terminates your employment without cause, they must provide you with notice and pay any outstanding wages and end-of-service benefits. If you have worked for the company for more than one year, you may also be entitled to compensation for arbitrary dismissal.
In conclusion, understanding the legal considerations related to termination of employment contracts in the UAE can help you protect your rights and ensure that you are treated fairly. If you have any questions or concerns about your termination, you should consult with a legal professional who can provide you with guidance and advice.
Employee Rights in UAE
As an employee in the UAE, you have certain rights that protect you in the event of termination. These rights include the right to appeal and file grievances, the right to compensation and severance, and the right to confidentiality and non-competition clauses.
Appeal and Grievance Procedures
If you feel that your termination was unjustified or unfair, you have the right to appeal the decision. You can do this by filing a grievance with your employer or by contacting the Ministry of Human Resources and Emiratisation (MOHRE). The MOHRE has a labor complaints system that allows employees to file complaints online.
When filing a grievance, it is important to provide as much detail as possible about the circumstances surrounding your termination. This includes any evidence or documentation that supports your case. Your employer is required to respond to your grievance within 15 days.
Compensation and Severance
Under UAE labor law, you are entitled to compensation and severance pay if your employer terminates your contract without a valid reason. The amount of compensation and severance pay you receive depends on the length of your service and your salary.
If you have worked for your employer for less than one year, you are entitled to 30 days’ notice or payment in lieu of notice. If you have worked for your employer for more than one year but less than five years, you are entitled to 90 days’ notice or payment in lieu of notice. If you have worked for your employer for more than five years, you are entitled to 120 days’ notice or payment in lieu of notice.
In addition to notice or payment in lieu of notice, you are entitled to end-of-service gratuity pay. This is calculated based on your salary and length of service, and is equal to 21 days’ pay for each year of service for the first five years, and 30 days’ pay for each year of service thereafter.
Non-Competition and Confidentiality Clauses
Many employment contracts in the UAE include non-competition and confidentiality clauses. These clauses restrict your ability to work for a competitor or disclose confidential information after your employment ends.
If your contract includes these clauses, it is important to understand your obligations and the consequences of violating them. Non-competition clauses must be reasonable in scope and duration, and must be designed to protect your employer’s legitimate business interests.
Confidentiality clauses prohibit you from disclosing confidential information about your employer or its clients. This includes trade secrets, customer lists, and financial information. Violating a confidentiality clause can result in legal action and damages.
In conclusion, as an employee in the UAE, you have certain rights when it comes to termination. These rights include the right to appeal and file grievances, the right to compensation and severance, and the right to confidentiality and non-competition clauses. It is important to understand your rights and obligations under UAE labor law to protect yourself in the event of termination.
Frequently Asked Questions
What are the termination benefits in UAE?
If an employee is terminated, they are entitled to receive end-of-service benefits, which include gratuity pay, notice pay, and unused leave pay. The amount of gratuity pay depends on how long the employee has worked for the company, and is calculated as 21 days’ basic salary for each year of service for the first five years, and 30 days’ basic salary for each additional year of service.
What is the notice period for termination?
The notice period for termination varies depending on the terms of the employment contract. According to Article 118 of the UAE Labour Law, the notice period should not be less than 30 days, unless otherwise agreed upon by both parties. However, if the employee has been employed for less than six months, the notice period can be reduced to one week.
Can an employee be terminated without notice?
Yes, an employee can be terminated without notice if they have committed a serious violation of the employment contract, as outlined in Article 120 of the UAE Labour Law. However, the employer must provide written evidence of the violation, and the employee has the right to challenge the termination in court.
What is arbitrary dismissal?
Arbitrary dismissal refers to termination of employment without a valid reason, and is prohibited by Article 122 of the UAE Labour Law. If an employee believes they have been arbitrarily dismissed, they can file a complaint with the Ministry of Human Resources and Emiratisation within one month of the termination.
What happens if an employee resigns under a limited contract?
If an employee resigns under a limited contract, they may be required to pay compensation to the employer for breaching the contract. The amount of compensation is usually equivalent to the salary for the remaining period of the contract.
What are the consequences of terminating an employee in UAE?
Terminating an employee without following the proper legal procedures can result in penalties and fines for the employer. The Ministry of Human Resources and Emiratisation may also impose a ban on the employer from hiring new employees for a certain period of time.
