When Can An Employer Terminate A Maid’s Contract Before Expiry, And What Obligations Follow?

Employers in the UAE who hire domestic workers under their personal sponsorship can terminate an employment contract before its expiry, but they must have valid legal grounds and comply with the requirements of the UAE Domestic Workers Law.

 

The matter is governed by Federal Decree-Law No. 9 of 2022 Concerning Domestic Workers, as amended by Federal Decree-Law No. 21 of 2023, together with Cabinet Resolution No. 106 of 2022, which sets out the executive regulations.

 

Under Article 20(1) of the law, either the employer or the domestic worker may terminate the employment agreement unilaterally if the other party breaches the obligations specified under Articles 11 and 12. The employer's responsibilities include paying the agreed wages, providing suitable accommodation and medical care, and treating the worker with dignity. The worker, in turn, is required to perform the agreed duties with due care, follow lawful instructions and safeguard the employer's property.

 

Consequently, an employer who is dissatisfied with a domestic worker's performance may have grounds for termination if the circumstances establish a breach of the worker's legal or contractual obligations. However, mere dissatisfaction or a difference in expectations does not automatically justify unilateral termination. The nature of the breach and the supporting evidence must be considered.

 

Article 7 also allows an employment agreement to be terminated before its expiry with the consent of both parties. This provides an alternative where the employer and worker mutually agree to end the employment relationship.

 

Financial obligations following termination depend on the circumstances. Under Article 20(2), where an employer terminates the agreement for a reason not attributable to the worker, the employer must pay all outstanding dues and provide a return ticket to the worker's home country. The employer must also settle any unpaid wages and other contractual entitlements.

 

Where a dispute arises over termination or the parties cannot reach an amicable settlement, the matter may be referred to the Ministry of Human Resources and Emiratisation (MOHRE). Under Article 23 of the law and the applicable executive regulations, the Ministry will attempt to resolve the dispute. If an amicable settlement cannot be reached within the prescribed period, the matter may be referred to the competent court.

 

Before proceeding with termination, employers should review the employment agreement, retain records of any performance-related concerns and establish the grounds for their decision. They must also settle outstanding wages and other entitlements and complete the necessary work permit and residence sponsorship cancellation formalities.

 

An employer's right to terminate a domestic worker's contract before its expiry is therefore not unconditional. The decision must be supported by a recognised legal ground or mutual agreement, with the worker's statutory rights and financial entitlements protected throughout the process.