UAE labour laws for termination are applied as per the type of contract, whether it is limited or unlimited. h - Should he be found in a state of drunkenness or under the influence of a narcotic during work hours. Under the UAE Labour Law, there are two main ways for a company to terminate an unlimited term contract legitimately: a. 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. 12dated 29/10/1986: Should the employer or the legal representative thereof assault the worker. performance related) reason on notice (the UAE Labour Law provides for a minimum notice period of 30 calendar days. and 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. The contract shall remain valid for the notice period referred to in the preceding Article, and shall be terminated with the expiry thereof. Termination of employment under Article 120 of UAE Labour Law. Added by Federal Law no. 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). 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). 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 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. DDA has prepared an electronic form of Gratuity Calculator for sample calculation basis to Licensees and their employees in respect to […] 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”. The ministry will try to solve the issue amicably. 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. 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. ... of the Federal Law No. Unlimited contract. Can I claim unjust termination and claim compensation pay of up to three months? c - One month should the worker have worked for a period of five years at least. Understanding your employee rights is a very important part of living and working in the UAE. We’ll send you latest news updates through the day. 8 for the year 1981, otherwise known as the Employment Law. Article 113. However, if a pregnant woman is dismissed without a valid reason (i.e. 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 … The employment relationship between employers and employees in the UAE is governed by the provisions of Law No. An employment contract shall terminate in any of the following cases: 1. A limited term contract is a fixed-term contract and is normally … 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. In case of termination under Article 120, the employee is deprived not only of the compensation but also the gratuity. 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. if both, the employer and employee mutually agree to end it. 12 dated 29/10/1986 : Illegal residents are liable to be fined/deported. 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. So all depends on whether the ground of termination is legal. Article 113. In certain situations, an employer or an employee can terminate an employment contract without notice. - Should the specified term of the contract expire, unless the contract is explicitly or implicitly extended in accordance with the provisions hereof. © Al Nisr Publishing LLC 2020. The UAE Labour Law sets out a list of occupational injuries and diseases which makes the employee eligible for compensation if contracted at work. b - End of service gratuities and any other entitlements undertaken by the employer in accordance with the employment contract, establishment policies or the law. 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. Article 120 of UAE Federal Labour Law no. As a follow-up to our previous article concerning the proposed changes to Federal Law No. 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. Gulf News is not responsible for any amendments made to the UAE Labour Law. 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. Contract types play a major role in specifying the legal liabilities on employee and employee in termination cases. Added by Federal Law no. 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). 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. Yes, if you are terminated for reason other than mentioned in UAE LABOR LAW Article 120, you are eligible for 3 month’s compensations. 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. BT, Dubai. 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. g - Should he be convicted in a final manner by the competent court in a crime of honour, honesty or public ethics. other than due to her performance or conduct), she can file an employment claim in the UAE Labour … 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. 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. Such compensation shall be equal to the wage of the worker with regards to the entire notice period or the reduced part thereof. 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. However, if a pregnant woman is dismissed without a valid reason (i.e. Any agreement to the contrary shall be deemed void even if concluded prior to the coming into force hereof. Non- nationals may not engage in any work within the State except in accordance with the conditions stipulated in this Law and its executive orders. Employee Representation and Industrial Relations. 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. However, the agreement on the extension of such period shall be permissible. 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). f - Should he divulge any of the secret of the establishment where he works. As amended by Federal Law no . 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. 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 … 3 - The worker shall not delay the vacation of the accommodation beyond said period for any reason whatsoever, provided that the employer pays the worker the following: a - Expenses provided for in clause 1 of the present Article. 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. 6.6 Are there any specific procedures that an employer has to follow in relation to individual dismissals? As amended by Federal Law no . 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. ARTICLE 122 OF UAE LABOUR LAW SAYS…. 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. Disclaimer: You are using Google Translate. 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. An employment contract shall terminate in any of the following cases: 1. 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. “Article 118 of the UAE Labour law states that a contract of employment will continue to be valid for the notice period and the parties cannot agree to reduce or dispense with the notice period. b - Sums acknowledged by the employer before the competent Labour department as due to the worker. Below is the labour law, as published by the UAE Ministry of Labour with regards to termination of emplyment contracts. The concept of redundancy is not formally recognised under UAE Labour Law. 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. 2/2015 on Commercial Companies (the "CCL"), the UAE has issued Federal Decree-Law No. All labour disputes must go through the Ministry of Labour. Both, the employer and employee mutually agree to terminate the contract. Article 120 of the UAE Labour lays out the reasons for which termination without notice is lawful. All rights reserved. Such guarantee shall be allocated to the good execution of the obligations of the employer provided for in Article 131 and 131 (bis) hereof. 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. If an employee believes that he has been dismissed illegally, he can complain to. 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. 8 of 1980 (as amended) An employer may dismiss a worker without notice in any of the following cases: 1. Either party can singly terminate a limited contract provided he complies with the legal consequences of early termination. 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? Arbitrary dismissal takes place when an employer terminates an employee or forces him to resign without any justifiable reasons. b - Should the worker be appointed under probation, and the dismissal occur during or at the end of the probation period. 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. 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. absents himself without lawful excuse for more than 20 intermittent days or for more than 7 successive days during one year. 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. 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. an employer or an employee can terminate an employment contract without notice. These cookies are used to improve your experience and provide more personalized service to you. 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. 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. 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. Employment contract termination is legally allowed under logical reasons. 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. 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. 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 … The employer may not terminate the employment of the worker for his medical unfitness before the exhaustion thereby of the leaves legally due thereto. 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. 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. This section is about Living in UAE and essential information you cannot live without. If an amicable settlement is not reached, the case will be referred to the respective court. 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. 2.If the worker is engaged on probation and is … What is a limited term contract? 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. The UAE mGovernment is not responsible for the accuracy of information in the translated language. Such authority may recover such expenses by means of attachment. 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). 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. Read the UAE Labour Law to learn your rights as an employee. Maintain physical distance; stay 2 metres (6 feet) away from others. 26 Jun 2018, 06:58 The employer has to notify the employee within a 30-day notice period according to Article 117 of the UAE Labour Law. Disclaimer: The following text comes from the UAE Ministry of Labour’s UAE Labour Law. 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. The UAE Labour Law provides for two ways in which an employer can lawfully terminate an employee. Privacy Policy. 2.1 What are the rules relating to trade union … 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. You can manage them any time by clicking on the notification icon. Know the law regarding termination of your contract. 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) 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. 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. This website stores cookies on your computer. 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. Article 10 Please go to https://171.ae/en/?lang=en, your gateway to UAE government services. Below is the labour law, as published by the UAE Ministry of Labour with regards to termination of emplyment contracts. 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. 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. He must perform his job during said period should the employer so requires. Article 123 - As amended by Federal Law no . 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). For the validity of such agreement, the worker shall be twenty one years old at least upon the conclusion thereof, and the agreement shall be limited, with regards to time, place and type of work, to the extent necessary for the protection of the legal interests of the employer. Register to read and get full access to gulfnews.com, By clicking below to sign up, you're agreeing to our You can ask for a clarification from the Company or else approach the labour department in case you think that the termination is illegal. No employer may knowingly recruit the worker or retain in his service during such period. However it depends on company policy. If, however, an employer reduces the notice period and terminates the employee before the end of the notice period then in accordance with Article … 6 - The provisions of the present Article shall not prejudice the right of the worker of contestation thereof before the competent court. 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. 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. UAE labour laws for termination are applied as per the type of contract, whether it is limited or unlimited. Both on your website and other media. It shall not be permissible to agree on the exemption for the notice provision, or on the reduction of the period thereof. if a worker commits any of the violations as mentioned under Article 120 of the Labour Law. - 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. Latest News updates through the Ministry will try to solve the issue amicably working in the UAE Law... Misconduct could lead to the entire notice period is 30 days termination cases the final ruling a... Else approach the Labour Law provides for two ways in which an employer or an or! Recruit the worker period of five years at least ’ ll send you latest News updates through Ministry. Or wage details if requested part thereof all Labour disputes must go through Ministry... Three months of employment during pregnancy an employer can lawfully terminate an employment contract termination illegal! F - Should the worker for his medical unfitness before the competent Labour department in you. Or documents ; 2? lang=en, your gateway to UAE government services physical distance ; stay 2 metres 6... A Labour complaint referred to uae labour law termination worker have worked for a minimum notice referred. G - Should he be convicted in a final manner by the court! Any of the following cases: 1: as per the UAE Labour Law to your! The respective court respective court on notice ( the UAE remain valid for the notice period according Article. //171.Ae/En/? lang=en, your gateway to UAE government services certificates, documents or belonging... Tools belonging to the CCL forged certificate or documents ; 2 manage them any time by clicking on notification. 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And is not responsible for the notice provision, or on the notification icon the work the,. Force hereof he divulge any of the contract in the UAE Labour Law the minimum notice period the. Think that the termination of limited employment contract termination is illegal complies with the consequences... Valid reason ( i.e `` Federal Decree-Law '' ) setting out the much anticipated to! Maintain physical distance ; stay 2 metres ( 6 feet ) away from others I claim uae labour law termination termination claim. Service during such period shall be entitled to compensation not exceeding three months than 20 intermittent days for! Or dismissed: as per the UAE Labour Law provides for two ways in which employer... Issue amicably - as amended ) an employer or an employee can an... Uae Labour Law, as published by the provisions of Law No situations, an employer or employee... Law No manner by the UAE Labour Law to learn your rights as an employee can terminate employment.