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 … Either party can singly terminate a limited contract provided he complies with the legal consequences of early termination. 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. Contract types play a major role in specifying the legal liabilities on employee and employee in termination cases. 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. 2/2015 on Commercial Companies (the "CCL"), the UAE has issued Federal Decree-Law No. 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. 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. c - One month should the worker have worked for a period of five years at least. 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). 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. Article 120 of the UAE Labour lays out the reasons for which termination without notice is lawful. 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. 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. However, the agreement on the extension of such period shall be permissible. Illegal residents are liable to be fined/deported. 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. if both, the employer and employee mutually agree to end it. Article 120 of UAE Federal Labour Law no. So all depends on whether the ground of termination is legal. The worker shall be entitled to his complete wage for such period on the basis of the last paid wage. 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 . 2.1 What are the rules relating to trade union … We’ll send you latest news updates through the day. 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 … 2. In case of termination under Article 120, the employee is deprived not only of the compensation but also the gratuity. Should the worker, upon the termination of the contract, be employed by another employer, the latter shall be liable for the repatriation expenses of the worker upon the end of his service. 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. 26/2020 (the "Federal Decree-Law") setting out the much anticipated amendments to the CCL. Any agreement to the contrary shall be deemed void even if concluded prior to the coming into force hereof. 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. The employment relationship between employers and employees in the UAE is governed by the provisions of Law No. If an employee believes that he has been dismissed illegally, he can complain to Ministry of Human Resources and Emiratisation. 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. ... of the 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). Under the UAE Labour Law, there are two main ways for a company to terminate an unlimited term contract legitimately: a. Article 113. These cookies are used to improve your experience and provide more personalized service to you. 2.If the worker is engaged on probation and is … 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. the reasons for which termination without notice is lawful, Ministry of Human Resources and Emiratisation, Ministerial Resolution No. e - Should the worker fail to perform his main duties in accordance with the employment contract, and fail to remedy such failure despite a written investigation on the matter and a warning that he will be dismissed in case of recidivism. The concept of redundancy is not formally recognised under UAE Labour Law. As a follow-up to our previous article concerning the proposed changes to Federal Law No. Call centre For any Labour issues, call 800 665, Locate your nearest Ministry of Labour office. BT, Dubai. 26 Jun 2018, 06:58 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. The UAE Labour Law does not include any specific provisions regarding termination of employment during pregnancy. 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. 14 dated 17/10/1999: 1 - The employer shall submit to the competent labour department a banking guarantee whose type, value, procedures of submission, companies and institutions to whom it applies and other provisions related thereto shall be determined by virtue of a cabinet decision. 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 … Understanding your employee rights is a very important part of living and working in the UAE. 8 for the year 1981, otherwise known as the Employment Law. 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. An employment contract shall terminate in any of the following cases: 1. 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). 5 - In such case, the thirty-day period referred to in clause 2 of the present Article shall run as of the date of the deposit by the employer of the specified expenses and entitlements into the treasury of the Ministry of Labour with the knowledge of the Labour Department. 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. Upon Termination of Employment Contract. h - Should he be found in a state of drunkenness or under the influence of a narcotic during work hours. In certain situations, an employer or an employee can terminate an employment contract without notice. Added by Federal Law no. Disclaimer: The following text comes from the UAE Ministry of Labour’s UAE Labour Law. Gross misconduct could lead to the termination of limited employment contract UAE. 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 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. As amended by Federal Law no. The UAE Labour Law provides for two ways in which an employer can lawfully terminate an employee. Please go to https://171.ae/en/?lang=en, your gateway to UAE government services. 8 of 1980 (as amended) An employer may dismiss a worker without notice in any of the following cases: 1. 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. Federal Labour Law No. Should the employer or worker fail to notify the other party of the termination of the contract, or should such party reduce the notice period, the notifying party shall pay to the other party a compensation know as compensation in lieu of notice, even if such failure to notice or such reduction of the period does not cause damage to the other party. 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. 12 dated 29/10/1986 : 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. 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. No employer may knowingly recruit the worker or retain in his service during such period. performance related) reason on notice (the UAE Labour Law provides for a minimum notice period of 30 calendar days. Employment contract termination is legally allowed under logical reasons. Unlimited contract. However, if a pregnant woman is dismissed without a valid reason (i.e. - Should the specified term of the contract expire, unless the contract is explicitly or implicitly extended in accordance with the provisions hereof. (8) OF 1980 and its Amendments. Such guarantee shall be allocated to the good execution of the obligations of the employer provided for in Article 131 and 131 (bis) hereof. 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. an employer or an employee can terminate an employment contract without notice. No employer may knowingly recruit the worker or retain in his service during such period. Both, the employer and employee mutually agree to terminate the contract. The day of absence from work without pay shall not be included in calculating the time period of service. Below is the labour law, as published by the UAE Ministry of Labour with regards to termination of emplyment contracts. 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. 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. if the term of the contract expires and is not renewed. If, however, an employer reduces the notice period and terminates the employee before the end of the notice period then in accordance with Article … 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. Can I claim unjust termination and claim compensation pay of up to three months? The contract shall remain valid for the notice period referred to in the preceding Article, and shall be terminated with the expiry thereof. 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. Article 10 As amended by Federal Law no . b - Two weeks should the worker have worked for a period of one year at least. DDA has prepared an electronic form of Gratuity Calculator for sample calculation basis to Licensees and their employees in respect to […] 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. 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. 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) Employee Representation and Industrial Relations. 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. Article 120 of the UAE Labour lays out the reasons for which termination without notice is lawful. Maintain physical distance; stay 2 metres (6 feet) away from others. Register to read and get full access to gulfnews.com, By clicking below to sign up, you're agreeing to our UAE labour laws for termination are applied as per the type of contract, whether it is limited or unlimited. An employment contract shall terminate in any of the following cases: 1. if a worker commits any of the violations as mentioned under Article 120 of the Labour Law. absents himself without lawful excuse for more than 20 intermittent days or for more than 7 successive days during one year. 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. 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. 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. The employment shall continue and the original and new employer shall be jointly liable for a period of six months for the execution of the obligations arising from the employment contracts during the period preceding the change. It may also state your latest pay or wage details if requested. 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. The initiatives include a Ministry of Labour formatted employment contract to avoid contract substitution and set minimum employment standards, limiting the circumstances under which an employee can receive a labor ban which prohibits them from working in the UAE again for a set period of time, and allowing more freedom for workers to terminate their employment and transfer between employers. 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. 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 it depends on company policy. 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. An employer and employee can mutually agree to have longer notice period, but they cannot shorten notice to less than the statutory minimum period. 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. other than due to her performance or conduct), she can file an employment claim in the UAE Labour … As amended by Federal Law no. Below is the labour law, as published by the UAE Ministry of Labour with regards to termination of emplyment contracts. The UAE Labour Law does not include any specific provisions regarding termination of employment during pregnancy. Article 7 b - Sums acknowledged by the employer before the competent Labour department as due to the worker. 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. “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. In case of unlimited contracts, an employment relation is terminated if both the employer and employee mutually agree to terminate the contract, or when either party decides to terminate the contract provided that the terminating party abides by the legal notice requirements and continues to honour his obligations. 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. Q: Will absence be calculated in Gratuity? b - End of service gratuities and any other entitlements undertaken by the employer in accordance with the employment contract, establishment policies or the law. Arbitrary dismissal takes place when an employer terminates an employee or forces him to resign without any justifiable reasons. 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. 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). 120 ( e ) of the following cases: 1 or documents ; 2 your rights an... Wage of the secret of the Labour Law, your gateway to UAE government services minimum notice period according Article... A limited contract provided he complies with the provisions hereof the proposed to! To follow in relation to individual dismissals by the UAE mGovernment is responsible! Article 123 - as amended by Federal Law No ’ s UAE Labour Law must go the! A worker without notice is lawful contract termination is legally allowed under logical reasons has to follow in to! Commits any of the Labour Law worker be appointed under probation, and shall be permissible agree... 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