Termination Law in UAE

Either of the parties can singularly dismiss a limited contract provided he must comply with the legal implications of premature termination. In the case of unlimited contracts, labour relation can be terminated, if both the employee and employer jointly accept to terminate it or when both the parties decide to terminate the labour contract provided that the dismissed party complies with the legal notice conditions and continues to respect his responsibilities. In such circumstances, an employee or employer can terminate the employment contract without notice. Arbitrary/Unfair dismissal happens when an employer fires an employee or compels him to resign without any legitimate reasons. In spite of having transparent and comprehensible guidelines on employee’s entitlements, employees always end up with less payment than what they really owe in case of termination and resignation. From conditions of contracts, notice periods and arbitrary dismissals, there are certain laws which protect both employer and employee.

Resignation

When an employee resigns, his employer’s approval or refusal on his resignation is not vital legally. Despite the fact that the resignation was rendered by email, it must be deemed accepted from the date of delivery. Accordingly, his contractual notice period begins from the date of submission itself. If the employees is on a limited contract, resignation is considered as breach of contract as per UAE Labour Law. Under the limited contract, an employee can leave the job only with the consent of his employer of after completing his contract period mentioned on the labour contract.

Termination

In the case of termination of an employment contract, the UAE Labour Law stipulates certain claims. The ensuing questions are of significance:

Termination from the employer without any justified reason will be considered as arbitrary dismissal, even in the case of redundancy as well, so that the employers are responsible to recompense the employee for the unfair dismissal along with his gratuity and other dues. Under the UAE Labour Law, an employee is eligible for an early termination atonement for a minimum of 3 months’ salary, along with his all-other dues, if an employer terminates the labour contract prior to the completion of the said contract.

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