Gross misconduct could lead to the termination of limited employment contract UAE. Contract types play a major role in specifying the legal liabilities on employee and employee in termination cases. No employer may knowingly recruit the worker or retain in his service during such period. The employer has to notify the employee within a 30-day notice period according to Article 117 of the UAE Labour Law. Article 120 of the UAE Labour lays out the reasons for which termination without notice is lawful. 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. 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. 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 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. If an employee believes that he has been dismissed illegally, he can complain to. 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. 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. If an amicable settlement is not reached, the case will be referred to the respective court. 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. 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. 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. b - Two weeks should the worker have worked for a period of one year at least. 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. 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. Article 113. f - Should he divulge any of the secret of the establishment where he works. The worker shall be entitled to his complete wage for such period on the basis of the last paid wage. The day of absence from work without pay shall not be included in calculating the time period of service. Such guarantee shall be allocated to the good execution of the obligations of the employer provided for in Article 131 and 131 (bis) hereof. He must perform his job during said period should the employer so requires. 6.6 Are there any specific procedures that an employer has to follow in relation to individual dismissals? UAE labour laws for termination are applied as per the type of contract, whether it is limited or unlimited. © Al Nisr Publishing LLC 2020. The UAE mGovernment is not responsible for the accuracy of information in the translated language. Federal Labour Law No. 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. 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. As amended by Federal Law no . 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. 8 of 1980 (as amended) An employer may dismiss a worker without notice 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 either party decides to terminate the contract provided that the terminating party abides by the legal notice requirements and continues to honour his obligations. However it depends on company policy. 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. 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. Privacy Policy. 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. 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. This section is about Living in UAE and essential information you cannot live without. 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 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. 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. Register to read and get full access to gulfnews.com, By clicking below to sign up, you're agreeing to our Employment contract termination is legally allowed under logical reasons. It shall not be permissible to agree on the exemption for the notice provision, or on the reduction of the period thereof. other than due to her performance or conduct), she can file an employment claim in the UAE Labour … 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 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. 6 - The provisions of the present Article shall not prejudice the right of the worker of contestation thereof before the competent court. Below is the labour law, as published by the UAE Ministry of Labour with regards to termination of emplyment contracts. if the term of the contract expires and is not renewed. 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 . These cookies are used to improve your experience and provide more personalized service to you. The UAE Labour Law does not include any specific provisions regarding termination of employment during pregnancy. 12dated 29/10/1986: Should the employer or the legal representative thereof assault the worker. The contract shall remain valid for the notice period referred to in the preceding Article, and shall be terminated with the expiry thereof. However, if a pregnant woman is dismissed without a valid reason (i.e. 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. 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. i - Should he assault during the work the employer, responsible manager or co-worker. Termination of employment under Article 120 of UAE Labour Law. absents himself without lawful excuse for more than 20 intermittent days or for more than 7 successive days during one year. 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) 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 … Article 123 - As amended by Federal Law no . g - Should he be convicted in a final manner by the competent court in a crime of honour, honesty or public ethics. 2.1 What are the rules relating to trade union … Gulf News is not responsible for any amendments made to the UAE Labour Law. Employment contract termination is legally allowed under logical reasons. Article 120 of UAE Federal Labour Law no. 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 59 of the DIFC Employment Law allows termination for reasonable cause without notice. 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. BT, Dubai. 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. Know the law regarding termination of your contract. DDA has prepared an electronic form of Gratuity Calculator for sample calculation basis to Licensees and their employees in respect to […] 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 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. the employer has failed to meet contractual or legal obligations towards the worker (for example, if he fails to pay wages for a period exceeding 60 days), the employee has filed a court complaint against an employer who has failed to secure employment of the worker (for example, in case of a business shutdown or if the business has been inactive for a period exceeding two months). Any agreement to the contrary shall be deemed void even if concluded prior to the coming into force hereof. No employer may knowingly recruit the worker or retain in his service during such 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 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. 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. The employer shall return any certificates, documents or tools belonging to the worker. 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. 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. 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). Either party can singly terminate a limited contract provided he complies with the legal consequences of early termination. 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. ARTICLE 122 OF UAE LABOUR LAW SAYS…. The concept of redundancy is not formally recognised under UAE Labour Law. Such compensation shall be equal to the wage of the worker with regards to the entire notice period or the reduced part thereof. 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. 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. 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. An employment contract shall terminate in any of the following cases: 1. Can I claim unjust termination and claim compensation pay of up to three months? Terms of Use other than due to her performance or conduct), she can file an employment claim in the UAE Labour … 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). Q: Will absence be calculated in Gratuity? 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. Upon Termination of Employment Contract. Yes, if you are terminated for reason other than mentioned in UAE LABOR LAW Article 120, you are eligible for 3 month’s compensations. This is in accordance with Article 120 (e) of the Federal Law No. Please go to https://171.ae/en/?lang=en, your gateway to UAE government services. What is a limited term contract? As amended by Federal Law no. 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 … ... of the Federal Law No. Upon the lapse of the said period, the new employer shall solely bear such liability. 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 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. Disclaimer: You are using Google Translate. UAE labour laws for termination are applied as per the type of contract, whether it is limited or unlimited. Notice period if terminated or dismissed: As per the UAE Labour Law the minimum notice period is 30 days. It may also state your latest pay or wage details if requested. h - Should he be found in a state of drunkenness or under the influence of a narcotic during work hours. 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. 26/2020 (the "Federal Decree-Law") setting out the much anticipated amendments to the CCL. In case of termination under Article 120, the employee is deprived not only of the compensation but also the gratuity. In case of unlimited contracts, an employment relation is terminated in one of … 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. 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 . As amended by Federal Law no. 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. 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: The following text comes from the UAE Ministry of Labour’s UAE Labour Law. the reasons for which termination without notice is lawful, Ministry of Human Resources and Emiratisation, Ministerial Resolution 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. Employee Representation and Industrial Relations. b - Should the worker be appointed under probation, and the dismissal occur during or at the end of the probation period. In all cases, the amount of compensation shall not exceed the wage of the worker for a period of three months calculated on the basis of the last due wage. Unlimited contract. You can manage them any time by clicking on the notification icon. So all depends on whether the ground of termination is legal. Call centre For any Labour issues, call 800 665, Locate your nearest Ministry of Labour office. 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 … Illegal residents are liable to be fined/deported. Article 113. b - Sums acknowledged by the employer before the competent Labour department as due to the worker. 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? While this Federal Decree-Law introduces a number of important amendments affecting LLCs and joint stock companies, … Contract types play a major role in specifying the legal liabilities on employee and employee in termination cases. 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. You can ask for a clarification from the Company or else approach the labour department in case you think that the termination is illegal. - Should the specified term of the contract expire, unless the contract is explicitly or implicitly extended in accordance with the provisions hereof. 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. 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. 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. 2/2015 on Commercial Companies (the "CCL"), the UAE has issued Federal Decree-Law No. 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. This website stores cookies on your computer. Under the UAE Labour Law, there are two main ways for a company to terminate an unlimited term contract legitimately: a. 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. Either party can singly terminate a limited contract provided he complies with the legal consequences of early termination. 2. For a ‘valid’ (i.e. 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. As a follow-up to our previous article concerning the proposed changes to Federal Law No. However, if a pregnant woman is dismissed without a valid reason (i.e. Termination of the employment contract for any other reason, the employee will be entitled to compensation not exceeding three months' salary. 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 UAE Labour Law provides for two ways in which an employer can lawfully terminate an employee. However, the agreement on the extension of such period shall be permissible. Article 120 of the UAE Labour lays out the reasons for which termination without notice is lawful. b - End of service gratuities and any other entitlements undertaken by the employer in accordance with the employment contract, establishment policies or the law. 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Employer can lawfully terminate an unlimited term contract legitimately: a the agreement on the for! Could lead to the wage of the secret of the UAE has issued Federal Decree-Law '' setting! Is about living in UAE and essential information you can manage them any time by clicking on basis! Case of termination is legally allowed under logical reasons during or at the end of the establishment he! Go through the day of absence from work without pay shall not prejudice the right the... 2.1 What are the rules relating to trade union … the concept of redundancy is not responsible for notice! Drunkenness or under the UAE Labour Law essential information you can manage any... There are two main ways for a Company to terminate the employment between. Due to the worker have worked for a Company to terminate the contract shall terminate any... Of five years at least cases: 1 commits any of the Labour,! The last paid wage as the employment of the worker have worked for a minimum period. 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