The UAE has announced rules on notice periods and contract termination in the country.
The Ministry of Human Resources and Emiratisation explained notice period rules for employees in the UAE who have a contract terminated.
According to the MOHRE both employer and employee can terminate a contract, so long as they abide by the terms and conditions laid out.
UAE notice period explained
In a post on X, the MOHRE said: “Under The Regulation of Labour Relations Law and its Implementing Regulations, both parties can terminate the work contract as long as they’re complying with the terms and conditions of the notice period”.
The MOHRE further explained that notice periods in the UAE must be between 30 and 90 days and that workers are required to fulfil their duties throughout the notice period.
If either party fails to serve a notice period they must pay the other a “notice period allowance”, which is equal to the worker’s wage for the full notice period or in proportion to the remaining period.
The allowance for the notice period is calculated according to the last wage received by the worker.
Under The Regulation of Labour Relations Law and its Implementing Regulations, both parties can terminate the work contract as long as they’re complying with the terms and conditions of the notice period.
— وزارة الموارد البشرية والتوطين (@MOHRE_UAE) May 30, 2024
Learn more in this post??#MoHRE #UAE pic.twitter.com/1cm3eaoLod
When an employer terminates a worker’s contract, the employee is entitled to one unpaid day off per week during the notice period in order to search for another job as long as three days’ notice are given in advance.
The MOHRE added that a “notice period allowance is calculated based on the worker’s most recent wage, whether received monthly, weekly, daily or hourly” and that “the notice allowance of piece-rate wage workers is determined by the average daily wage, according to Regulation of Labour Regulations Law and its implementing regulations”.
Further information on the official UAE Government portal says that “the notice period may be reduced or exempted on mutual agreement between the two parties, with no infringement of any parties’ rights”.
Termination of contract without notice by the employer in the UAE
Article 44 of the UAE Labour Law mentions that an employer may terminate the services of the employee without notice, if the latter:
- Adopts a false identity or submits forged documents or certificates
- Commits an error causing substantial material loss to the employer or if he deliberately damages the properties of the employer and acknowledged the same. Note that the employer must inform MoHRE about the incident within seven working days from having knowledge of the same
- Violates instructions concerning safety of the workers and the place of business provided that such instructions were 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 warning him twice of dismissal, if the same is repeated
- Divulges any secrets of the establishment resulting in losses or a missed opportunity to the employer, or achieving a personal benefit for self
- Is found to be drunk or under the influence of prohibited drugs during working hours, or commits an action breaching the public morals at the workplace
- Assaults the employer, the manager or any of his colleagues during the course of his work
- Absents himself without lawful excuse for more than 20 intermittent days or more than 7 successive days during one year
- Exploits his position illegally to obtain personal results and gains
- Joins another establishment without abiding by the rules and procedures in this regard
The law stipulates that the employer may terminate without notice only after conducting a written investigation of the worker.
The dismissal notice must be in writing, justified and handed over duly to the employee.
Termination of contract without notice by the employee in the UAE
Article 45 mentions that an employee may terminate the contract without notice, if the employer:
- Fails to meet their contractual or legal obligations towards the worker, provided that the worker notifies the MoHRE 14 working days before the date of quitting and the employer fails to rectify the breach despite being notified by MOHRE of the same
- Assaulted or harassed the worker at workplace, provided that the latter informs the competent authorities and the MoHRE within five working days from the date on which they are able to report
- Instructed the worker to perform a work fundamentally different from the work agreed upon in the employment contract, without the worker’s written consent on the same, except for situations where work is absolutely required and as explained in Article 12 of the UAE Labour Law
- Failed to remove the factors that pose a grave danger and/or threaten the workers’ safety or health despite being aware of it. Article 26 of Cabinet Resolution No. 1 of 2022 on the Implementation Regulation of Federal Decree Law No. 33 of 2021 spells out circumstances of grave danger at the workplace
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