Ending an employment relationship is not always simply straightforward. Whether you are an employee planning to resign or an employer considering termination, understanding laws and regulations regarding employment contract termination is necessary to avoid disputes. In the UAE, employment relationships are regulated by Federal Decree-Law No. 33 of 2021 and its amendments, which includes laws covering notice periods, termination, employee rights, and end-of-service matters.
Employment Contract Termination in the UAE
As per the UAE laws, either the employee or employer can terminate the employment contract for a valid reason, providing a written notice. The employee should also serve a notice period stated in the contract to be between 30 and 90 days. Employment contracts can also be ended due to reasons like expiry of the contract, mutual agreement, permanent inability to work, closure of the establishment, or certain economic circumstances.
Employees have the right to end the contract through resignation. But one must review their contract before doing so regarding the notice period, obligations, benefits or restrictions. If an employee leaves regardless of the contract obligations, they may be liable for notice-period compensation.
Employer Termination and Employee Rights
Whether the employer initiates termination or the employee resigns, both should comply with the labour laws of the UAE. The employee must be aware of their rights for outstanding salary, unused leave payments, end-of-service benefits, and others as per the circumstances. If the employer is the one terminating the contract, the employee is entitled to one unpaid working day per week during the notice period to look for another job.
An employee’s understanding of this is important to calculate the rightful amount depending on the length of service, salary, reason for termination, and the terms of contract. In case of confusion, one can go for professional help from employment law firms in Dubai.
Employment Contract Termination During Probation
The standard termination process and rules do not apply as they are, when it comes to the probation period. Probation has specific rules under the UAE employment regulations. These specific conditions can vary on factors like who initiated the termination of contract, whether the employee intends to move out of the UAE or to another employer. For this reason, it is advisable to consider professional legal advice in case of termination during the probation period.
Employment Contract Termination During the Notice Period
Serving the notice period is an important part of the termination process. The employment contract will be effective during notice period as well, with the employer receiving full wage. The employee should continue working in the notice period and abide by the company’s rules and regulations. Both the parties can also reach mutual terms regarding the duration of the notice period. If either party fails to comply with the notice, compensation may become payable.
Procedures of employment contact termination
Following a structured process in employment contract termination can reduce confusion and disputes.
- Review the contract: Check the notice period, end of service benefits, additional contractual conditions and provisions.
- Provide written notice: Whether termination or resignation, ensure that it is communicated through written format and follows notice requirements.
- Complete the notice: Fulfil the notice period requirements unless both parties agree otherwise in accordance with the law.
- Calculate the final entitlements: Review salary, unused leave payments, end-of-service payments and other dues.
- Complete the formalities: Ensure all work-permit-related procedures are completed promptly, following termination.
Seeking the services of a labour lawyer in Dubai
Employment disputes can occur due to issues like unpaid wages, notice-period disputes, end-of-service benefits, contractual obligations, or disagreements regarding the reason for termination. Consulting an employment lawyer in UAE can help both the employee and employer understand their position in the matter of concern and their rights. A professional labour lawyer in Dubai will help you assess the contract, explain possible options and provide legal assistance in case of any court proceedings.
Employment contract termination and its laws may seem confusing to expatriates, and unawareness regarding that can lead to financial losses. You can seek assistance from an Indian lawyer in Sharjah or an Indian advocate in Dubai for ease of the formalities and language.
Conclusion
Employment contract termination is not as simple a task as it seems. It requires in-depth understanding of the employment provisions and one’s rights and responsibilities in case of both employer and the employee. At UCA Legal, we provide professional legal guidance and service from expert Malayali lawyer in UAE. Contact us for more details.
FAQ
What is the average notice period?
In general, notice periods as per employment contracts will be between 30 and 90 days.
Is written notice required for termination?
If there are two or more children, there is no automatic rule that each parent gets one child. Here also, the child’s best interests and other factors are considered.
Can I get legal help if final settlement is not done?
Yes. You can get legal assistance in any of such matters, like unpaid salary, leave payments, end-of-service benefits, or other employment entitlements
Will my salary remain the same during the notice period?
Yes. The employment contract remains effective during the notice period, and the employee is entitled to their full wage for that period.
