Termination of Employment in the UAE: Employee and Employer Rights Explained

Employment relationships in the UAE are governed by Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations, which outlines the rights and obligations of both employers and employees when it comes to termination. Whether initiated by the employer or the employee, the termination process must follow specific legal provisions to avoid disputes.

Grounds for Termination

Termination of employment in the UAE can occur under several circumstances, including:

Mutual Agreement – Both parties agree to end the contract.
Expiry of Contract – For fixed-term contracts, termination occurs upon completion unless renewed.
Resignation by Employee – Employees may resign by giving proper notice, usually between 30 to 90 days depending on the contract.
Termination by Employer – Employers may terminate employees, but the termination must comply with legal grounds. Arbitrary or unjust dismissal can lead to compensation claims.

Employee Rights Upon Termination

Employees are entitled to certain protections and benefits when employment ends, such as:

Notice Period – Employers must provide notice as per the contract, unless termination is for gross misconduct.
End-of-Service Gratuity – Employees who complete at least one year of service are entitled to gratuity pay, calculated based on length of service and final salary.
Unpaid Wages & Benefits – Any outstanding salary, allowances, or unused leave days must be settled.
Compensation for Arbitrary Dismissal – If the termination is found to be unfair, employees may claim compensation up to three months’ wages.

Employer Rights Upon Termination

Employers also have rights under UAE law, including:

Right to Dismiss for Cause – Immediate termination without notice is permitted in cases of gross misconduct, such as fraud, disclosure of trade secrets, or workplace violations.
Notice Requirement by Employee – If an employee resigns without serving notice, the employer may claim compensation.
Non-Compete Clauses – Employers may enforce non-compete clauses if they are reasonable in time, place, and type of work.

How TLG: The Legal Group Assists in Employment Termination Cases

Navigating termination disputes requires legal precision, as errors can result in costly claims or penalties. Saif Al Shamsi, founder of TLG: The Legal Group, provides expert legal assistance by:

Advising employers on legally compliant termination procedures to avoid liability.
Assisting employees in filing claims for unpaid dues, gratuity, or unfair dismissal.
Drafting and reviewing employment contracts to ensure clarity on termination rights.
Representing both employers and employees in litigation or labor dispute resolution.
Offering mediation to resolve disputes amicably and minimize court involvement.

Through this approach, TLG ensures that both parties understand their rights and obligations, reducing risks and protecting interests.

Conclusion

Termination of employment in the UAE is not just a contractual issue—it is a legal process with significant financial and professional implications. Both employees and employers must follow the law carefully to safeguard their rights. With proper legal guidance, disputes can be resolved fairly, ensuring compliance and protecting all parties involved.