Understanding the Legal Framework for Employee Termination Due to Non-Performance in the UAE

In the UAE, an employee's obligation to perform their duties diligently is enshrined in Article 16(8) of the Federal Decree Law No. 33 of 2021 on the Regulation of Employment Relations. Employers have the right to take disciplinary action, including termination, for non-performance, provided they follow the stipulated procedures.

 

The Legal Process for Termination Due to Non-Performance

To legally terminate an employee for non-performance in the UAE, employers must adhere to the following steps:

1. Written Warnings: Issue at least two written warnings, clearly outlining the specific areas of non-performance and the consequences of repeated failure.
2. Investigation: Conduct a thorough investigation to document the employee's non-performance and any attempts made to rectify the issue.
3. Dismissal Decision: If the investigation confirms the employee's non-performance, a written dismissal decision must be issued, outlining the reasons for termination.

4. Severance Pay: Even in cases of termination for non-performance, the employee may be entitled to severance pay based on their tenure and the company's policy.

    

Key Considerations

• Time Limits: Employers must initiate disciplinary action within 60 days of completing the investigation.
• Fairness and Objectivity: The termination process must be fair and unbiased, based on clear evidence of non-performance.
• Documentation: Maintain detailed records of all warnings, investigations, and disciplinary actions.

• Legal Counsel: Consult with an employment lawyer to ensure compliance with all legal requirements and to minimize the risk of legal challenges.

   

Avoiding Wrongful Termination Claims 

To avoid potential legal challenges, employers should:

• Clearly Define Performance Expectations: Establish clear performance metrics and expectations in the employment contract.
• Provide Adequate Training and Support: Ensure employees have the necessary training and resources to perform their job effectively.
• Document Performance Issues: Maintain detailed records of performance issues and attempts to address them.
• Follow Due Process: Adhere to the legal procedures outlined in the UAE Labour Law.

By following these guidelines, employers can protect their interests while ensuring fair and legal employment practices in the UAE.

 

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