The employer-employee relationship in UAE is regulated by the UAE Labor Law wherein various provisions provide safeguards to both parties. The new labor law provides various instances under which termination of employment takes place.
Instances Where The Employer Can Terminate The Employee Without Notice
The UAE Labor Law provides that an employer may terminate an employee without notice for specific acts, the details of such provision are provided under Article 120:=
- Employee furnished any false documents or certificate or has acquired any false identity or nationality.
- The employee is under the probation period.
- Employee has committed an error resulting in massive losses, provided that the employer has notified the Labour Department within 48 hours of the knowledge of such incidence.
- Employee has violated the instructions pertaining to safety at the workplace.
- In case the employee fails to perform his main duties provided in his employment contract and fails to rectify such failure provided a warning has been issued to him stating that he shall be dismissed in the event of repetition.
- Employee disclosed a trade secret of the employer.
- Employee has been convicted by the competent court for any crime against honor, public ethics, or honesty.
- Employee is found drunk or under influence of drugs during work hours.
- Employee was, without a valid reason absent from work for more than seven consecutive days or for more than twenty non-consecutive days in one year.
- Employee has assaulted the co-worker, employer, or manager during work.
Instances Where The Employee Can Terminate The Contract Without Notice
In addition to the above, the employee also has a right to terminate the employment contract without notice in various circumstances as enumerated below. Such a privilege has been provided to the Employee under Article 44 of the UAE Labor Law:
- In the event where the employer fails to meet his Legal or contractual obligations to the employee, and the same has been notified by the employee 14 working days before quitting and despite being notified by the Ministry of Human Resources and Emiratization (MOHRE), the employer fails to rectify the same.
- In case the worker has been assaulted or harassed at work, and same has been notified to the appropriate authorities and the MOHRE within 5 working days from the date he was able to report.
- In case the employer is aware of the elements that constitute a grave danger/ threaten the workers’ safety or health and fails to remove the same.
- In case the employee has been instructed to perform a task vitally different from the one agreed upon under the employment contract without the written consent of the employee. However, the proviso to this rule is an event where it is necessary and those explained in article 12 of the UAE Labor Law.
Circumstances Wherein The Contract Of Employment May Be Terminated
Apart from the above factors, wherein the employment contract can be terminated unilaterally Article 42, below provides various instances wherein the employment contracts will be considered terminated.
- Upon the expiry of the terms of the contract and if the same has not been renewed.
- Upon mutual agreement between employer and employee.
- Upon serving the notice. (Refer to below details)
- Upon the death of an employee (in case the subject of the contract relates to its entity)
- Upon the death of the employer.
- Upon judgment, by the court wherein the employee is restricted to work for not less than three months.
- Upon the permanent closure of the establishment.
- Upon the bankruptcy or insolvency of the employer.
- Upon the failure of the worker to fulfill the condition to renew the work permit.
A Notice Period Of Termination
In an event wherein an employer or employee wants to terminate the contract upon serving the notice, there are prerequisites of the same as provided under Article 43 as below:
- A notification in writing has been provided to the other party and
- A notice of a minimum of 30 days has been served.
Under a limited contract, if an employer terminates the employee on the grounds other than those mentioned in Article 120 of the UAE Labour Law, in that case, the employer is liable to pay the compensation which can be either the wages worth 3 months or for the remaining period of the contract, whichever is less.
Arbitrary Dismissal
Arbitrary dismissal is one of the most common reasons for a complaint being filed under the Labour Court. It is defined as the termination of an employee’s contract without a fair reason to do so. A complaint about arbitrary dismissal can be filed by the employee if the employer handled dismissal using an unfair procedure and without any reasonable justification.
As per Article 47, if such a dismissal is proved through a complaint filed by an employee to MOHRE, in such case, the employee shall be liable for the compensation amounting to a maximum of total wages of three months for such dismissal. Such compensation shall be decided by the court which will depend based on the kind of work, duration of employment, and extent of the damage which was caused to the employee.
To learn more about your rights under the new Labour law, feel free to contact Convention 360 team. We are always ready to assist you.
Tejinder Singh
Legal Assistant
services@convention360me.com