uae labour law termination

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) Article 123 - As amended by Federal Law no . 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. Can I claim unjust termination and claim compensation pay of up to three months? Article 120 of the UAE Labour lays out the reasons for which termination without notice is lawful. Understanding your employee rights is a very important part of living and working in the UAE. 4 - Should the worker contest the amount of the said expenses and entitlements, the competent labour department shall specify such expenses and entitlement in an expedite manner within a week from the date of notification thereto, provided that it notifies the worker thereof upon their specification. Article 113. 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. - Should a party to an employment contract with undetermined term wish the termination thereof, provided that such party abides by the provisions hereof related to the notification and the acceptable grounds for the termination of the contract in a non - arbitrary manner. 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. Employee Representation and Industrial Relations. Give us your feedback so we can improve your experience. Article 7 According to Article 120 of the UAE Labour Law, the employer can dismiss an employee under a limited contract without any notice in the following circumstances: If the employee commits forgery of … 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. It shall not be permissible to agree on the exemption for the notice provision, or on the reduction of the period thereof. In case of termination under Article 120, the employee is deprived not only of the compensation but also the gratuity. 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. 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. 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. The UAE Labour Law does not include any specific provisions regarding termination of employment during pregnancy. 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. As amended by Federal Law no. Q: Will absence be calculated in Gratuity? The compensation in lieu of notice shall be calculated on the basis of the last wage paid to the worker for the monthly, weekly, daily or hourly - paid workers, and on the basis of the average daily wage set forth in Article 57 hereof with regards to the payment per piece. Non-national workers obtaining prior to the employment in another job the consent of the Minister of Labour and Social Affairs in accordance with the authorization of the original employer shall be exempt from the provisions of Articles 128 and 129. 26/2020 (the "Federal Decree-Law") setting out the much anticipated amendments to the CCL. Article 120 of UAE Federal Labour Law no. Either party can singly terminate a limited contract provided he complies with the legal consequences of early termination. 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. The employer shall return any certificates, documents or tools belonging to the worker. 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. 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. According to Article 125 of the UAE Labour Law, an employee upon end of contract should be given an end-of-service certificate detailing start date, end date and nature of … This is in accordance with Article 120 (e) of the Federal Law No. Read the UAE Labour Law to learn your rights as an employee. Gross misconduct could lead to the termination of limited employment contract UAE. The employer has to notify the employee within a 30-day notice period according to Article 117 of the UAE Labour Law. 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). 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). 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. This section is about Living in UAE and essential information you cannot live without. Article 10 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. As amended by Federal Law no . Termination of the employment contract for any other reason, the employee will be entitled to compensation not exceeding three months' salary. 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. The court will assess the value of compensation taking into account the type of work, the extent of damage incurred to the employee and the duration of the employment. For a ‘valid’ (i.e. 12dated 29/10/1986: Should the employer or the legal representative thereof assault the worker. In case of unlimited contracts, an employment relation is terminated in one of … A limited term contract is a fixed-term contract and is normally … 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 . 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 … 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. 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. if both, the employer and employee mutually agree to end it. h - Should he be found in a state of drunkenness or under the influence of a narcotic during work hours. No employer may knowingly recruit the worker or retain in his service during such period. Article 120 of the UAE Labour lays out the reasons for which termination without notice is lawful. Privacy Policy. 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. 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. If, however, an employer reduces the notice period and terminates the employee before the end of the notice period then in accordance with Article … He must perform his job during said period should the employer so requires. Contract types play a major role in specifying the legal liabilities on employee and employee in termination cases. 6.6 Are there any specific procedures that an employer has to follow in relation to individual dismissals? The UAE Labour Law does not include any specific provisions regarding termination of employment during pregnancy. Should a change occur in the form of the establishment or the legal headquarters thereof, the employment contracts valid at the time of the change shall remain valid between the new employer and the workers of the establishment. UAE Labour Law 6 Chapter II: Employment Of Workers Children And Women Section I: Employment of Workers Article 9 Work is an inherent right of the Nationals of the United Arab Emirates. However it depends on company policy. 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. 26 Jun 2018, 06:58 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. 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. You can manage them any time by clicking on the notification icon. 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. BT, Dubai. 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. What is a limited term contract? Upon Termination of Employment Contract. The UAE mGovernment is not responsible for the accuracy of information in the translated language. However, the agreement on the extension of such period shall be permissible. if a worker commits any of the violations as mentioned under Article 120 of the Labour Law. 12 dated 29/10/1986 : If the worker adopts a false identity or nationality or submits forged certificate or documents; 2. The UAE Labour Law sets out a list of occupational injuries and diseases which makes the employee eligible for compensation if contracted at work. The concept of redundancy is not formally recognised under UAE Labour Law. To find out more about the cookies and data we use, please check out our, Dear Reader, please register to read gulfnews.com, Password should have minimum 7 characters with at least one letter and number, Fashionably protected: Fashion law in the UAE, Fired or resigning? f - Should he divulge any of the secret of the establishment where he works. 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. If an employee believes that he has been dismissed illegally, he can complain to Ministry of Human Resources and Emiratisation. Either party can singly terminate a limited contract provided he complies with the legal consequences of early termination. Register to read and get full access to gulfnews.com, By clicking below to sign up, you're agreeing to our In addition to compensation, the employee can claim his gratuity, notice period dues or any other unpaid dues he is entitled to from his employer. 12 dated 29/10/1986: Should the employment contract be of a determined term, and the employer rescind same for reasons not set forth in Article 120, he shall be bound to compensate the worker for the damage incurred thereto, provided that the compensation amount does not exceed in any case the total wage due for the period of three months or for the remaining period of the contract, whichever is shorter, unless otherwise stipulated in the contract. Termination of contract without notice by the employer. As amended by Federal Law no. 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. According to Article 125 of the UAE Labour Law, an employee upon end of contract should be given an end-of-service certificate detailing start date, end date and nature of work performed during the period of employment. 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). 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 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. Illegal residents are liable to be fined/deported. Federal Labour Law No. 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. This website stores cookies on your computer. and 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. 1 – “Valid Reason” Under Article 117, an employer may terminate an employee with notice as per their contract (minimum of 30 days’ and maximum 3 months’) for a “valid reason”. Both on your website and other media. The worker shall be entitled to his complete wage for such period on the basis of the last paid wage. 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. The ministry will try to solve the issue amicably. Maintain physical distance; stay 2 metres (6 feet) away from others. Subject to the provisions of the preceding clause, should the employer not repatriate the worker and not pay the expenses of such repatriation, the competent authority shall do so at the expense of the employer. All rights reserved. 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. Such compensation shall be equal to the wage of the worker with regards to the entire notice period or the reduced part thereof. b - End of service gratuities and any other entitlements undertaken by the employer in accordance with the employment contract, establishment policies or the law. The employer may not terminate the employment of the worker for his medical unfitness before the exhaustion thereby of the leaves legally due thereto. However, if a pregnant woman is dismissed without a valid reason (i.e. We’ll send you latest news updates through the day. 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). UAE labour laws for termination are applied as per the type of contract, whether it is limited or unlimited. Know the law regarding termination of your contract. 12 dated 29/10/1986: a - Should the worker be arbitrarily dismissed, the competent court may order the employer to pay a compensation to the worker. The court shall assess such compensation, taking into account the type of work and the extent of damage incurred to the worker as well as the duration of employment and after the investigation of the work conditions. 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. Please go to https://171.ae/en/?lang=en, your gateway to UAE government services. 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. 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. The day of absence from work without pay shall not be included in calculating the time period of service. 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. Employment contract termination is legally allowed under logical reasons. Q: Does article 120 of Labor Law in case of termination by employer cover the following situation: An employee went on an emergency leave due to his Mother's hospitalization and after 45 days she passed away. Disclaimer: The following text comes from the UAE Ministry of Labour’s UAE Labour Law. b - Should the worker be appointed under probation, and the dismissal occur during or at the end of the probation period. Notice period if terminated or dismissed: As per the UAE Labour Law the minimum notice period is 30 days. An employment contract shall terminate in any of the following cases: 1. the reasons for which termination without notice is lawful, Ministry of Human Resources and Emiratisation, Ministerial Resolution No. 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 UAE Labour Law, poor performance or financial issues in the company are acceptable reasons for someone to be made redundant, as is a specific job role no longer required. Should the non-national worker leave work without a valid cause prior to the end of the contract with definite term, he may not get another employment even with the permission of the employer for a year from the date of abandonment of the work. 2/2015 on Commercial Companies (the "CCL"), the UAE has issued Federal Decree-Law No. Yes, if you are terminated for reason other than mentioned in UAE LABOR LAW Article 120, you are eligible for 3 month’s compensations. ... of the Federal Law No. Employment contract termination is legally allowed under logical reasons. 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. b - Sums acknowledged by the employer before the competent Labour department as due to the worker. 12 dated 29/10/1986: 1 - In the implementation of the provisions of the preceding Article, repatriation expenses shall mean the price of the travel ticket as well as the rights of the worker stipulated in the employment contract or the regulations of the establishment with regards to the travel expenses of his family and the cost of shipping of his personal effects. other than due to her performance or conduct), she can file an employment claim in the UAE Labour … The contract shall remain valid for the notice period referred to in the preceding Article, and shall be terminated with the expiry thereof. Under the UAE Labour Law, there are two main ways for a company to terminate an unlimited term contract legitimately: a. UAE labour laws for termination are applied as per the type of contract, whether it is limited or unlimited. 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). However, if a pregnant woman is dismissed without a valid reason (i.e. adopts a false identity or nationality or if he submits forged documents or certificates, is appointed under a probationary period and dismissal occurred during or at the end of said period, commits an error causing substantial material loss to the employer provided that the latter advises the labour department of the incident within 48 hours from having knowledge of the same, violates instructions concerning safety of the place of business provided that such instructions are displayed in writing at conspicuous places or verbally informed to an illiterate employee, fails to perform his basic duties under the employment contract and persists in violating them despite formal investigation with him in this respect and warning him of dismissal if the same is repeated, divulges any secrets of the establishment where he is employed, is awarded final judgement by the competent court in respect of an offence prejudicing honour, honesty or public morals, during working hours, is found drunk or under the influence of prohibited drugs, in the course of his work, commits an assault on the employer, the manager or any of his colleagues. 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. i - Should he assault during the work the employer, responsible manager or co-worker. 12dated 29/10/1986: Should the contract be rescinded by the worker for causes not set forth in Article 121, the worker shall be bound to compensate the employer for the loss incurred thereto by reason of the rescission of the contract, provided that the amount of compensation does not exceed the wage of half a month for the period of three months, or for the remaining period of the contract, whichever is shorter, unless otherwise stipulated in the contract. - Should the specified term of the contract expire, unless the contract is explicitly or implicitly extended in accordance with the provisions hereof. 6 - The provisions of the present Article shall not prejudice the right of the worker of contestation thereof before the competent court. 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. Upon the lapse of the said period, the new employer shall solely bear such liability. 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. Such guarantee shall be allocated to the good execution of the obligations of the employer provided for in Article 131 and 131 (bis) hereof. While this Federal Decree-Law introduces a number of important amendments affecting LLCs and joint stock companies, … 2.If the worker is engaged on probation and is … 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. Contract types play a major role in specifying the legal liabilities on employee and employee in termination cases. 2 - The deduction of any sums from the banking guarantee referred to in paragraph 1 of the present Article shall be carried out in pursuance of a judicial ruling, and such with the exception of the following: a - The expenses of repatriation of the worker to his country or to the location agreed upon with the employer. c - One month should the worker have worked for a period of five years at least. 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. Within a 30-day notice period is 30 days claim unjust termination and compensation! Legally allowed under logical reasons feedback so we can improve your experience and provide more personalized service to you in... Work the employer shall return any certificates, documents or tools belonging to the UAE Labour,... Worker adopts a false identity or nationality or submits forged certificate or uae labour law termination! Gateway to UAE government services both, the case will be entitled to complete. By clicking on the reduction uae labour law termination the worker have worked for a period of year... Section is about living in UAE and essential information you can manage any. Leaves legally due thereto I claim unjust termination and claim compensation pay of up three. 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To agree on the reduction of the worker be appointed under probation, and shall be entitled to his wage! Forces him to resign without any justifiable reasons think that the termination is.! Himself without lawful excuse for more than 20 intermittent days or for more than successive... The exemption for the notice period if terminated or dismissed: as per the UAE is. Employment relationship between employers and employees in the UAE has issued Federal Decree-Law.! The minimum notice period if terminated or dismissed: as per the UAE Labour Law by on...

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