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. 12dated 29/10/1986: Should the employer or the legal representative thereof assault the worker. If the worker adopts a false identity or nationality or submits forged certificate or documents; 2. Article 120 of the UAE Labour lays out the reasons for which termination without notice is lawful. Can I claim unjust termination and claim compensation pay of up to three months? 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. “Article 118 of the UAE Labour law states that a contract of employment will continue to be valid for the notice period and the parties cannot agree to reduce or dispense with the notice period. ARTICLE 122 OF UAE LABOUR LAW SAYS…. if the term of the contract expires and is not renewed. Unlimited contract. 12 dated 29/10/1986 : If an employee believes that he has been dismissed illegally, he can complain to Ministry of Human Resources and Emiratisation. 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 either party decides to terminate the contract provided that the terminating party abides by the legal notice requirements and continues to honour his obligations. As amended by Federal Law no. 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. These cookies are used to improve your experience and provide more personalized service to you. As amended by Federal Law no. The contract shall remain valid for the notice period referred to in the preceding Article, and shall be terminated with the expiry thereof. if a worker commits any of the violations as mentioned under Article 120 of the Labour Law. 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. Article 10 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. When an employer / company fires an employee or terminates the employment contract, (also read Termination of Employment Contract) the employee is eligible for one way air ticket to their home country (home country defined in contract). f - Should he divulge any of the secret of the establishment where he works. 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. Understanding your employee rights is a very important part of living and working in the UAE. While this Federal Decree-Law introduces a number of important amendments affecting LLCs and joint stock companies, … Register to read and get full access to gulfnews.com, By clicking below to sign up, you're agreeing to our 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. 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? 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. 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. Article 113. Employment contract termination is legally allowed under logical reasons. - Should the specified term of the contract expire, unless the contract is explicitly or implicitly extended in accordance with the provisions hereof. 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. What is a limited term contract? 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. The employer shall return any certificates, documents or tools belonging to the worker. Article 59 of the DIFC Employment Law allows termination for reasonable cause without notice. After termination of employment contract and cancellation of work visa, the terminated employee is granted a 30-day grace period from the date of cancellation, where he can either obtain a new residence permit or leave the country. Arbitrary dismissal takes place when an employer terminates an employee or forces him to resign without any justifiable reasons. Both on your website and other media. 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. 26/2020 (the "Federal Decree-Law") setting out the much anticipated amendments to the CCL. The day of absence from work without pay shall not be included in calculating the time period of service. Either party can singly terminate a limited contract provided he complies with the legal consequences of early termination. 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 … 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. and 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. 8 for the year 1981, otherwise known as the Employment Law. 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. 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. We’ll send you latest news updates through the day. b - Should the worker be appointed under probation, and the dismissal occur during or at the end of the probation period. 8 of 1980 (as amended) An employer may dismiss a worker without notice in any of the following cases: 1. Article 120 of UAE Federal Labour Law no. 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. 1 – “Valid Reason” Under Article 117, an employer may terminate an employee with notice as per their contract (minimum of 30 days’ and maximum 3 months’) for a “valid reason”. Employment contract termination is legally allowed under logical reasons. However, if a pregnant woman is dismissed without a valid reason (i.e. 6.6 Are there any specific procedures that an employer has to follow in relation to individual dismissals? The UAE Labour Law sets out a list of occupational injuries and diseases which makes the employee eligible for compensation if contracted at work. 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. 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. Should the worker, upon the termination of the contract, be employed by another employer, the latter shall be liable for the repatriation expenses of the worker upon the end of his service. 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. 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. If, however, an employer reduces the notice period and terminates the employee before the end of the notice period then in accordance with Article … 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. Gratuity Calculator Disclaimer :Dubai Development Authority (DDA) Free Zone is governed by the Dubai Technology and Media Free Zone Employment Regulations 2004 and U.A.E. other than due to her performance or conduct), she can file an employment claim in the UAE Labour … ... of the Federal Law No. Disclaimer: You are using Google Translate. Termination of a limited term contract should only be for the reasons given in Article 120 of the UAE Labour Law or at the expiry of the contract term. Yes, if you are terminated for reason other than mentioned in UAE LABOR LAW Article 120, you are eligible for 3 month’s compensations. Rebecca Ford, employment partner at global law firm Clyde & Co in Dubai, said the law allows an employer to terminate an unlimited term contract for a valid reason, but does not specify what a valid reason may be. Below is the labour law, as published by the UAE Ministry of Labour with regards to termination of emplyment contracts. Privacy Policy. Such guarantee shall be allocated to the good execution of the obligations of the employer provided for in Article 131 and 131 (bis) hereof. If an amicable settlement is not reached, the case will be referred to the respective court. You can manage them any time by clicking on the notification icon. Contract types play a major role in specifying the legal liabilities on employee and employee in termination cases. 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. 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 … 2/2015 on Commercial Companies (the "CCL"), the UAE has issued Federal Decree-Law No. Terms of Use 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. Under the UAE Labour Law, there are two main ways for a company to terminate an unlimited term contract legitimately: a. c - One month should the worker have worked for a period of five years at least. In case of termination under Article 120, the employee is deprived not only of the compensation but also the gratuity. performance related) reason on notice (the UAE Labour Law provides for a minimum notice period of 30 calendar days. When either party acts unilaterally to terminate the contract, without complying with the legal notice and without reasons of default by the other party - in this case, the terminating party bears the legal consequences of early termination. 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. 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. No employer may knowingly recruit the worker or retain in his service during such period. Termination of employment under Article 120 of UAE Labour Law. Below is the labour law, as published by the UAE Ministry of Labour with regards to termination of emplyment contracts. In certain situations, an employer or an employee can terminate an employment contract without notice. 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 120 of the UAE Labour lays out the reasons for which termination without notice is lawful. 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. So all depends on whether the ground of termination is legal. - Should a party to an employment contract with undetermined term wish the termination thereof, provided that such party abides by the provisions hereof related to the notification and the acceptable grounds for the termination of the contract in a non - arbitrary manner. 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. Such authority may recover such expenses by means of attachment. Employee Representation and Industrial Relations. 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