• Employee Rights After Termination

Employee Rights After Termination in the UAE: Federal Laws Guide


Shini Ramith

December 11, 2023 · 13 min read
Employee Rights After Termination in the UAE: Federal Laws Guide - TalentPoint

Your Rights if Fired From Work in UAE, Termination Rules

Termination of employment in UAE is a daunting prospect. In UAE, understanding your rights when facing termination is paramount. Therefore, comprehending the intricacies of the termination process empowers individuals to navigate this challenging period with confidence. So, what if company terminate an employee in UAE? 

In this article, we will guide you through the termination of employment in UAE, providing essential insights into your rights and the rules governing employment cessation in this dynamic country. Discover what if company terminate an employee in UAE!

Understanding Termination Rules: Your Rights and Protections

The Federal Laws, including Federal Law no. 8 of 1980 governing employment relations, Federal Law no. 6 of 1973 on Immigration and Residence, and Federal Decree-Law no. 17 of 2017 on Immigration Law, collectively safeguard the rights of employees during termination. Termination can occur under three conditions: contract expiration, mutual agreement, or employee violation as per Article 120 of the labor law.

Employee Rights Upon Termination:

  • End of Service Benefit (EoSB):

    • Upon termination, immediate payment of EoSB is mandatory, except in cases of gross misconduct.

    • Calculated based on service duration, providing 21 days' pay for each of the first five years and 30 days' pay for each additional year.

  • Transportation Expenses:

    • Employers are obliged to bear the employee's airfare for returning to their home country in case of termination (Article 79 and Article 131).

  • Grace Period:

    • A 30-day grace period after visa cancellation is provided by the UAE government. An extension to 180 days is proposed but not yet enforced.

  • Dues and Receivables:

    • Varied based on termination circumstances. Gratuity pay and notice period compensation for redundancy; full compensation for wrongful termination.

  • Notice Period:

    • Employees must serve notice or compensate the employer. Maximum notice period is three months, and employees are entitled to full wages during this period.

  • Notice Period During Probation:

    • During probation, both parties must provide a 14-day notice. Breach results in financial compensation to the employee.

  • Termination During Leave:

    • Notice period calculation starts after the employee returns from leave.

  • Leave During Notice Period:

    • One-day leave during the notice period is granted for job search if terminated.

  • Medical Reasons:

    • Dismissal for medical unfitness is prohibited unless legal leaves are exhausted.

In UAE, understanding termination rules is pivotal for employees. Therefore, exploring the intricacies of what if company terminate an employee in UAE and the associated termination of employment in UAE regulations is essential. We will discover this topic. Read on!

Employment dynamics can be unpredictable, and understanding your rights if faced with termination is crucial. The United Arab Emirates (UAE) has specific rules and regulations in place to safeguard the interests of employees during such transitions. In this guide, we explore your rights if you find yourself terminated from your job in the UAE.

**1. Understanding Termination Types:

a. Termination by Employer: Employers in the UAE have the right to terminate employees for various reasons, including redundancy, performance issues, or restructuring.

b. Resignation by Employee: If you decide to resign voluntarily, be aware of any notice periods and contractual obligations.

Gratuity Calculation

Upon termination, employees are entitled to end-of-service benefits, which include:

a. Gratuity: A lump sum payment based on the employee's length of service.

b. Unpaid Salary: Any unpaid salary or allowances should be settled upon termination.

One of the fundamental aspects dictated by what if company terminate an employee in UAE is the gratuity payout. Consequently, understanding the termination of employment in UAE regulations is crucial. Therefore, grasping the formula used to calculate gratuity ensures employees receive their entitled end-of-service benefits.

Notice Periods and Compensation

a. Employer's Notice: According to UAE labor law, an employer must provide notice or compensation in lieu of notice. The duration depends on the employment contract and the length of service.

b. Employee's Notice: Employees are also typically required to provide notice before resigning. Failure to do so may result in penalties.

In case of termination, notice periods or compensation, as stipulated by what if company terminate an employee in UAE, come into play. In essence, this period allows employees time to prepare for the transition. Furthermore, comprehending the intricacies of these notice periods is vital for financial planning during the post-employment phase.

Unlawful Termination 

Protection against unlawful termination is a cornerstone of UAE’s labor laws. In other words, understanding the rights safeguarded by what if company terminate an employee in UAE is paramount. Consequently, employees can seek legal recourse if they believe they were terminated unfairly, ensuring their rights are upheld.

Arbitrary or Unfair Dismissal:

If an employer terminates a contract without justifiable reasons, it is considered arbitrary or unfair dismissal. Article 122 of the UAE labor law outlines conditions for arbitrary dismissal, and Article 123 allows employees to file complaints with the Ministry of Human Resources and Emiratisation (MOHRE).

Initiating a Complaint:

Employees can register complaints through the MOHRE website, helpline (800 60), or MOHRE app, seeking amicable settlement. If unresolved, cases are referred to labor courts, where compensation, gratuity, notice period dues, and unpaid dues may be awarded.

Severance Packages and Benefits

In certain circumstances, employees may be entitled to severance pay, especially if the termination is arbitrary or unfair. The labor law outlines specific scenarios where severance pay applies.

Termination often involves severance packages and additional benefits. Therefore, understanding the parameters set by termination of employment in UAE is essential. In addition, recognizing the components of these packages, such as health benefits and allowances, ensures employees receive their entitled post-employment support.

Non-Compete Clauses

Some employment contracts contain non-compete clauses post-termination. As a result, understanding the limitations set by what if company terminate an employee in UAE is crucial. Moreover, comprehending these clauses prevents legal disputes and allows employees to make informed decisions regarding future employment opportunities.

Probationary Period Termination

During the probationary period, both the employer and employee have the right to terminate the contract without notice. However, any termination during this period should not be discriminatory or violate labor laws.

During the probationary period, termination rules may differ. In essence, understanding the guidelines provided by what if company terminate an employee in UAE is necessary. Therefore, being aware of the conditions under which employment can be terminated during this period ensures clarity and fair treatment.

Discrimination and Arbitrariness:

Employers are prohibited from terminating employees based on discriminatory grounds, such as gender, race, religion, or nationality. Arbitrary termination without valid reasons is also against labor regulations.

Redundancy and Layoffs

In situations of redundancy or layoffs, what if company terminate an employee in UAE regulations come into play. Consequently, comprehending the legal obligations during such events is crucial. In other words, understanding the criteria for selecting employees for termination ensures fairness and transparency.

Legal Support and Employee Rights

Being aware of employee rights post-termination empowers individuals. Therefore, seeking legal support if rights are violated is essential. Consequently, understanding the legal channels available under what if company terminate an employee in UAE regulations ensures employees can advocate for their rights effectively.

Termination Due to Serious Offenses:

If an employee engages in serious misconduct, the employer has the right to terminate the contract immediately without notice. Serious offenses may include theft, fraud, or other breaches of company policies.

Post-Employment Obligations

Employees have obligations even after termination. In addition, what if company terminate an employee in UAE regulations outline these obligations. Therefore, understanding post-employment responsibilities, such as returning company property or adhering to confidentiality agreements, avoids legal complications.

Negotiating Severance Agreements

Employees often negotiate severance agreements. In essence, comprehending what if company terminate an employee in UAE regulations is vital during negotiations. Therefore, being informed about the legal boundaries allows employees to negotiate fair and beneficial severance packages effectively.

Empowering Employees: A Deeper Dive into Termination and Employment Rights

Here are ten more information about this topic in the UAE:

Temporary Employment Contracts

Temporary contracts often come with unique termination rules. As a result, comprehending the implications outlined by what if company terminate an employee in UAE is essential. Furthermore, understanding the legality of termination during such contracts ensures employees' rights are upheld.

Employee Misconduct and Termination

Instances of misconduct can lead to termination. In essence, exploring the parameters defined by termination of employment in UAE for misconduct ensures fair treatment. Therefore, understanding the investigative process and due diligence involved in such cases is crucial.

Constructive Dismissal

Constructive dismissal refers to situations where the employer makes the work environment untenable, forcing employees to resign. Consequently, recognizing the signs of constructive dismissal outlined by what if company terminate an employee in UAE safeguards employees’ rights. Moreover, understanding when such cases can be legally pursued is pivotal.

Termination During Probationary Period

Termination during the probationary period has distinct rules. In other words, understanding the criteria set by termination of employment in UAE during this period ensures clarity for both employers and employees. Therefore, being aware of these conditions prevents misunderstandings.

Discrimination and Termination

Termination due to discrimination is illegal. Consequently, recognizing instances of discrimination outlined by what if company terminate an employee in UAE is vital. Furthermore, understanding the legal consequences for employers engaging in discriminatory practices empowers employees to seek justice.

Termination in Times of Economic Crisis

Economic downturns can lead to mass layoffs. In addition, exploring the legal obligations set by termination of employment in UAE during such crises ensures fairness. Therefore, understanding the processes involved in workforce reduction helps employees navigate these challenging times.

Handling Resignation

Employees leaving voluntarily have rights too. In essence, understanding the procedures outlined by what if company terminate an employee in UAE for resignations ensures a smooth departure. Furthermore, recognizing the notice periods and benefits during resignations fosters a positive end to employment relationships.

Rights of Wrongful Termination

Employees wrongfully terminated have legal recourse. Therefore, comprehending the rights protected under termination of employment in UAE for wrongful dismissal is crucial. Consequently, understanding how to build a strong case and seek compensation becomes essential for affected individuals.

Post-Employment Health Benefits

After termination, health benefits often become a concern. In other words, exploring the guidelines set by what if company terminate an employee in UAE for post-employment health benefits ensures employees’ well-being. Moreover, understanding the duration and coverage of these benefits is essential for planning medical expenses.

Handling Termination Stress

Termination can be emotionally taxing. As a result, recognizing the signs of stress and seeking mental health support is crucial. Furthermore, understanding coping mechanisms and available resources ensures employees navigate this challenging period resiliently.

Navigating Job Loss: A Comprehensive Guide to Rebuilding Your Career

So, experiencing job loss is undoubtedly challenging, but it can also serve as a catalyst for personal and professional growth. Termination of employment in UAE is not the end! Therefore, understanding the steps to take after being terminated empowers individuals to transform adversity into opportunity. In this guide, we will explore a variety of actions, marked by relevant keywords and connectors, to help you regain stability and embark on a promising career path.

Assessing Your Skills and Interests

In other words, taking stock of your skills and passions is essential. Consequently, identifying your strengths helps in aligning your career choices with your abilities, boosting confidence in your job search endeavors.

Continued Education and Skill Enhancement

Investing in education is pivotal in today’s competitive job market. As a result, enrolling in relevant courses or certifications enhances your qualifications. Furthermore, staying updated with industry trends broadens your skill set, making you a valuable asset to potential employers.

Networking and Professional Relationships

Networking plays a crucial role in securing new opportunities. Therefore, attending industry events and connecting with professionals is vital. Moreover, nurturing existing relationships fosters a supportive network, providing valuable insights and potential job referrals.

Resume Revamp and Personal Branding

Your resume is your professional introduction. In essence, optimizing your resume with keywords and accomplishments is essential. Consequently, creating a compelling personal brand, including an updated LinkedIn profile, enhances your online presence, attracting recruiters and employers.

Job Search Strategies

A strategic job search increases your chances of finding suitable positions. In addition, utilizing job search platforms and company websites expands your options. Furthermore, tailoring each application and cover letter showcases your genuine interest in the role, capturing employers’ attention.

Interview Preparation

Preparing for interviews is key to making a lasting impression. Therefore, researching the company and practicing common interview questions is crucial. As a result, showcasing your skills and experiences confidently during interviews highlights your suitability for the position.

Freelancing and Gig Economy Opportunities

Exploring freelance or gig opportunities provides flexibility and income. Consequently, registering on freelance platforms broadens your reach. In other words, leveraging your skills for short-term projects not only sustains your finances but also enhances your expertise.

Entrepreneurship and Small Business Ventures

Starting your own business can be a fulfilling option. In essence, conducting market research and creating a business plan are foundational steps. Furthermore, seeking mentorship from experienced entrepreneurs ensures a solid foundation for your venture.

Embracing Personal Development

Job loss offers a chance for personal growth. As a result, engaging in activities like volunteering, pursuing hobbies, or practicing mindfulness enhances your well-being. Moreover, a positive mindset and self-belief are integral to overcoming challenges.

Financial Planning and Budgeting

Managing your finances during job loss is crucial for stability. Consequently, creating a budget, reducing unnecessary expenses, and exploring financial assistance programs are essential. Furthermore, being proactive in financial matters ensures a secure future.

The Significance of Understanding Your Labor Rights in UAE

In the vibrant professional landscape of the United Arab Emirates (UAE), being well-versed in your labor rights is paramount. Therefore, comprehending the intricacies of employment laws not only safeguards your interests but also fosters a harmonious work environment. Consequently, delving into the importance of knowing your labor rights in UAE is crucial for both employees and employers.

Protection Against Exploitation

Understanding your labor rights shields you from exploitation and unfair treatment. In other words, being aware of the regulations set by UAE labor laws empowers you to identify and report any potential workplace violations. Furthermore, this knowledge acts as a deterrent against unscrupulous practices.

Fair Employment Practices

Knowledge of labor rights promotes fair employment practices. Therefore, both employees and employers benefit from transparent guidelines. Moreover, adhering to these regulations ensures a level playing field, fostering trust and mutual respect within the workplace.

Negotiating Employment Contracts

When you know your rights, you can negotiate employment contracts effectively. As a result, understanding the clauses related to compensation, benefits, working hours, and leave entitlements enables you to secure favorable terms. Consequently, informed negotiations pave the way for a mutually beneficial employer-employee relationship.

Resolving Workplace Disputes

In the event of disputes, awareness of your labor rights is invaluable. In essence, understanding the legal avenues available for dispute resolution provides a clear path to seek redress. Therefore, resolving conflicts amicably and in accordance with labor laws promotes workplace harmony.

Ensuring Workplace Safety and Health

UAE employment contracts prioritize employee safety and health. Consequently, knowing your rights related to workplace safety measures and health benefits guarantees a secure work environment. Moreover, employers fulfilling their obligations create a workplace conducive to employee well-being.

Encouraging Employee Engagement

Awareness of labor rights fosters a sense of security and engagement among employees. As a result, employees who feel protected and valued are more likely to contribute positively to the workplace. Therefore, promoting a well-informed workforce enhances overall productivity and job satisfaction.

Legal Recourse and Advocacy

Knowledge of labor rights provides a foundation for legal recourse and advocacy. Consequently, employees who are aware of their rights can confidently seek legal assistance if necessary. Moreover, this awareness empowers individuals to advocate for their rights and create a fair and just work environment.

In conclusion, you know all about what if company terminate an employee in UAE. Therefore, being well-informed equips you to navigate the complexities of the termination of employment in UAE with confidence. Consequently, for comprehensive guidance on your labor rights and legal support, visit The Talent Point. Contact us for help!

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