If an amicable settlement is not reached, the case will be referred to the respective court. b - Two weeks should the worker have worked for a period of one year at least. An employment contract shall terminate in any of the following cases: 1. The UAE Labour Law sets out a list of occupational injuries and diseases which makes the employee eligible for compensation if contracted at work. 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. 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. Any agreement to the contrary shall be deemed void even if concluded prior to the coming into force hereof. Added by Federal Law no. Article 113. ARTICLE 122 OF UAE LABOUR LAW SAYS…. - Should the specified term of the contract expire, unless the contract is explicitly or implicitly extended in accordance with the provisions hereof. Unlimited contract. 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). An employer and employee can mutually agree to have longer notice period, but they cannot shorten notice to less than the statutory minimum period. Article 10 Gulf News is not responsible for any amendments made to the UAE Labour Law. An employment contract shall terminate in any of the following cases: 1. In case of unlimited contracts, an employment relation is terminated if both, the employer and employee mutually agree to terminate the contract, or when e. ither party decides to terminate the contract provided that the terminating party abides by the legal notice requirements and continues to honour his obligations. 12dated 29/10/1986: Should the contract be rescinded by the worker for causes not set forth in Article 121, the worker shall be bound to compensate the employer for the loss incurred thereto by reason of the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. If an employee believes that he has been dismissed illegally, he can complain to. 2/2015 on Commercial Companies (the "CCL"), the UAE has issued Federal Decree-Law No. This relationship is usually regulated by way of a contract of employment that sets out the rights and obligations of each party in light of the provisions of the Employment 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). 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? UAE labour laws for termination are applied as per the type of contract, whether it is limited or unlimited. In all cases, the amount of compensation must not exceed the wage of the employee for a period of three months, calculated on the basis of the last wage the worker is entitled to. 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 - 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. the reasons for which termination without notice is lawful, Ministry of Human Resources and Emiratisation, Ministerial Resolution No. 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. 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. b - Sums acknowledged by the employer before the competent Labour department as due to the worker. and 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. 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. 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 … As amended by Federal Law no. 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. 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. Article 120 of the UAE Labour lays out the reasons for which termination without notice is lawful. Upon Termination of Employment Contract. 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. However, if a pregnant woman is dismissed without a valid reason (i.e. The employment contract shall not be terminated with the death of the employer, unless the subject of the contract is related to the person thereof. Yes, if you are terminated for reason other than mentioned in UAE LABOR LAW Article 120, you are eligible for 3 month’s compensations. If an employee believes that he has been dismissed illegally, he can complain to Ministry of Human Resources and Emiratisation. Article 113. The UAE Labour Law does not include any specific provisions regarding termination of employment during pregnancy. The employer shall, upon the termination of the contract, bear the expenses of repatriation of the worker to the location from which he is hired, or to any other location agreed upon between the parties. Below is the labour law, as published by the UAE Ministry of Labour with regards to termination of emplyment contracts. b - Should the worker be appointed under probation, and the dismissal occur during or at the end of the probation period. if a worker commits any of the violations as mentioned under Article 120 of the Labour Law. Terms of Use Such authority may recover such expenses by means of attachment. It may also state your latest pay or wage details if requested. As amended by Federal Law no . Both on your website and other media. These cookies are used to improve your experience and provide more personalized service to you. 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. However it depends on company policy. f - Should he divulge any of the secret of the establishment where he works. Disclaimer: The following text comes from the UAE Ministry of Labour’s UAE Labour Law. Arbitrary dismissal takes place when an employer terminates an employee or forces him to resign without any justifiable reasons. However, the agreement on the extension of such period shall be permissible. The employer shall return any certificates, documents or tools belonging to the worker. No employer may knowingly recruit the worker or retain in his service during such period. 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. 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. Employment contract termination is legally allowed under logical reasons. © Al Nisr Publishing LLC 2020. The contract shall remain valid for the notice period referred to in the preceding Article, and shall be terminated with the expiry thereof. When either party decides, at any time, to terminate the contract provided that the terminating party abides by the legal notice requirements and continues to honour his obligations for the duration of the notice period, which cannot be less than one month and no longer than three months. BT, Dubai. Illegal residents are liable to be fined/deported. As amended by Federal Law no. 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. A limited contract cannot exceed two years' term and it must mention the notice period ranging from a minimum of one month to a maximum of three months. UAE labour laws for termination are applied as per the type of contract, whether it is limited or unlimited. 6.6 Are there any specific procedures that an employer has to follow in relation to individual dismissals? This website stores cookies on your computer. 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. 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. 2. 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. While this Federal Decree-Law introduces a number of important amendments affecting LLCs and joint stock companies, … Below is the labour law, as published by the UAE Ministry of Labour with regards to termination of emplyment contracts. 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. b - The provisions of the preceding paragraph shall not breach the right of the worker to the gratuity entitled thereto and the compensation in lieu of notice provided for herein. if the term of the contract expires and is not renewed. 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 … compensating the other party to the level that was agreed to by both the parties, provided this does not exceed the equivalent of three months' gross wages. Termination of a limited term contract should only be for the reasons given in Article 120 of the UAE Labour Law or at the expiry of the contract term. No employer may knowingly recruit the worker or retain in his service during such period. Article 117 which reads as follows: “Both the Employer and the Employee may terminate a Contract of Employment of unlimited period for a valid reason at any time following its conclusion by giving the other party notice in less than 30 days before the termination. 765 of 2015 on the termination of employment relations, Title Seven (Termination of Employment Contract and End of Service Gratuity), Download the ALHOSN UAE contact-tracing app, Stay at home during restricted hours as per the regulations in force, During restricted hours, step out only if absolutely necessary, for health emergency, or if you work in a vital sector. 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. Termination of contract without notice by the employer. You can ask for a clarification from the Company or else approach the labour department in case you think that the termination is illegal. Under the UAE Labour Law, there are two main ways for a company to terminate an unlimited term contract legitimately: a. Gross misconduct could lead to the termination of limited employment contract UAE. 26 Jun 2018, 06:58 All labour disputes must go through the Ministry of Labour. 8 of 1980 (as amended) An employer may dismiss a worker without notice in any of the following cases: 1. Article 7 the final ruling for a labour complaint referred to the labour court by MoHRE is in favour of the worker. Employee Representation and Industrial Relations. 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. 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. Contract types play a major role in specifying the legal liabilities on employee and employee in termination cases. Disclaimer: You are using Google Translate. As amended by Federal Law no . i - Should he assault during the work the employer, responsible manager or co-worker. Either party can singly terminate a limited contract provided he complies with the legal consequences of early termination. 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. 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. He must perform his job during said period should the employer so requires. 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. If, however, an employer reduces the notice period and terminates the employee before the end of the notice period then in accordance with Article … So all depends on whether the ground of termination is legal. 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. The UAE Labour Law does not include any specific provisions regarding termination of employment during pregnancy. 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. 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). (8) OF 1980 and its Amendments. 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 . Privacy Policy. if both, the employer and employee mutually agree to end it. 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. 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. Employment contract termination is legally allowed under logical reasons. absents himself without lawful excuse for more than 20 intermittent days or for more than 7 successive days during one year. 8 for the year 1981, otherwise known as the Employment Law. Law, as published by the provisions of the worker be appointed under,... Whether the ground of termination is legally allowed under logical reasons or public ethics major... Can terminate an employee and claim compensation pay of up to three months ' salary the employee is deprived only... Prejudice the right of the contract shall terminate in any of the period... On the notification icon Should the worker with regards to the worker of contestation thereof before the exhaustion thereby the! 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