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Termination of a job contract under UAE labour law.

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Staff Writer, TLR

Published on July 14, 2023, 17:41:00


Termination of Job Contract Under UAE

Employers and employees can terminate their employment contracts by serving a notice period as required. The Employment Law states in Article 43 (1): Any party to an Employment Contract is entitled to terminate the contract for good cause by giving the other written notice. As long as the notice period does not fall below 30 days nor exceed 90 days, the employee must perform his duties during that notice period.

Article 44 of the Employment Law specifies that an employer may terminate an employee's services after an internal investigation in writing and without serving a notice period in writing. An employee can be terminated for submitting false documents; failing to follow the employer's instructions; failing to perform the duties; showing company secrets to third parties; being found in an irresponsible state (drunk or consuming of drugs); verbally or physically abusing the employer or coworkers.

According to Article 45 of the Employment Law, an employee may also terminate the contract without notice. Employers may face dismissal if they fail to fulfil the conditions laid out in their employment contracts, assault their employees, or assign their employees to new jobs without their consent.

If the employer fails to provide the employee with the necessary notice period, monetary compensation is required. This is under Article 43 (3) of the Employment Law, which states: "Even if no harm results from failure to notify, the party in breach shall compensate the other with pay instead of notice.". Compensation is equal to the employee's salary during the notice period or the period remaining thereof.”

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