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. Arbitrary dismissal takes place when an employer terminates an employee or forces him to resign without any justifiable reasons. an employer or an employee can terminate an employment contract without notice. Article 59 of the DIFC Employment Law allows termination for reasonable cause without notice. In addition to compensation, the employee can claim his gratuity, notice period dues or any other unpaid dues he is entitled to from his employer. Such guarantee shall be allocated to the good execution of the obligations of the employer provided for in Article 131 and 131 (bis) hereof. As a follow-up to our previous article concerning the proposed changes to Federal Law No. 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. It may also state your latest pay or wage details if requested. Article 113. b - Should the worker be appointed under probation, and the dismissal occur during or at the end of the probation period. Article 120 of the UAE Labour lays out the reasons for which termination without notice is lawful. “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. 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 … Under UAE Labour Law, poor performance or financial issues in the company are acceptable reasons for someone to be made redundant, as is a specific job role no longer required. Know the law regarding termination of your contract. In such cases, the Ministry may deduct such entitlements from the guarantee referred to in clause 1 of the present Article, and pay same to the worker in view of settling the prescribed rights. No employer may knowingly recruit the worker or retain in his service during such period. 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 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 … 12 dated 29/10/1986: Should the employment contract be of a determined term, and the employer rescind same for reasons not set forth in Article 120, he shall be bound to compensate the worker for the damage incurred thereto, provided that the compensation amount does not exceed in any case the total wage due for the period of three months or for the remaining period of the contract, whichever is shorter, unless otherwise stipulated in the contract. The worker shall be entitled to his complete wage for such period on the basis of the last paid wage. 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. Should the non-national worker notify the employer of his desire to terminate the contract with undetermined term, and leaves work before the expiry of the legally prescribed notice period, he may not get another job, even with the permission of the employer and such for a period of one year from the date of abandonment of the work. b - Sums acknowledged by the employer before the competent Labour department as due to the worker. 12 dated 29/10/1986: 1 - In the implementation of the provisions of the preceding Article, repatriation expenses shall mean the price of the travel ticket as well as the rights of the worker stipulated in the employment contract or the regulations of the establishment with regards to the travel expenses of his family and the cost of shipping of his personal effects. As amended by Federal Law no. performance related) reason on notice (the UAE Labour Law provides for a minimum notice period of 30 calendar days. f - Should he divulge any of the secret of the establishment where he works. 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. 26/2020 (the "Federal Decree-Law") setting out the much anticipated amendments to the CCL. 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. This website stores cookies on your computer. The UAE mGovernment is not responsible for the accuracy of information in the translated language. The employment relationship between employers and employees in the UAE is governed by the provisions of Law No. You can manage them any time by clicking on the notification icon. ... of the Federal Law No. 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. 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. absents himself without lawful excuse for more than 20 intermittent days or for more than 7 successive days during one year. 2. 2 - The deduction of any sums from the banking guarantee referred to in paragraph 1 of the present Article shall be carried out in pursuance of a judicial ruling, and such with the exception of the following: a - The expenses of repatriation of the worker to his country or to the location agreed upon with the employer. 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. Termination of contract without notice by the employer. Under Article 117 of the UAE Labour Law, a company may terminate an unlimited term employment contract for a valid reason at any time by providing at least 30 calendar days' notice of termination to the employee (or longer if the employment contract provides for a longer notice period). 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. For the validity of such agreement, the worker shall be twenty one years old at least upon the conclusion thereof, and the agreement shall be limited, with regards to time, place and type of work, to the extent necessary for the protection of the legal interests of the employer. The UAE Labour Law sets out a list of occupational injuries and diseases which makes the employee eligible for compensation if contracted at work. 12dated 29/10/1986: Should the contract be rescinded by the worker for causes not set forth in Article 121, the worker shall be bound to compensate the employer for the loss incurred thereto by reason of the rescission of the contract, provided that the amount of compensation does not exceed the wage of half a month for the period of three months, or for the remaining period of the contract, whichever is shorter, unless otherwise stipulated in the contract. 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 … The employer shall return any certificates, documents or tools belonging to the worker. i - Should he assault during the work the employer, responsible manager or co-worker. Below is the labour law, as published by the UAE Ministry of Labour with regards to termination of emplyment contracts. 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. The compensation in lieu of notice shall be calculated on the basis of the last wage paid to the worker for the monthly, weekly, daily or hourly - paid workers, and on the basis of the average daily wage set forth in Article 57 hereof with regards to the payment per piece. You can ask for a clarification from the Company or else approach the labour department in case you think that the termination is illegal. However, if a pregnant woman is dismissed without a valid reason (i.e. Article 7 Under the UAE Labour Law, there are two main ways for a company to terminate an unlimited term contract legitimately: a. However, if a pregnant woman is dismissed without a valid reason (i.e. 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. Employee Representation and Industrial Relations. BT, Dubai. 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. Article 123 - As amended by Federal Law no . © Al Nisr Publishing LLC 2020. Upon the lapse of the said period, the new employer shall solely bear such liability. No employer may knowingly recruit the worker or retain in his service during such period. the reasons for which termination without notice is lawful, Ministry of Human Resources and Emiratisation, Ministerial Resolution No. - 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. As per Article 123 of the UAE Labour Law, if arbitrary dismissal is proven, the court will order the employer to pay a compensation to the employee. Termination of the employment contract for any other reason, the employee will be entitled to compensation not exceeding three months' salary. Either party can singly terminate a limited contract provided he complies with the legal consequences of early termination. compensating the other party to the level that was agreed to by both the parties, provided this does not exceed the equivalent of three months' gross wages. 14 dated 17/10/1999: 1 - The employer shall submit to the competent labour department a banking guarantee whose type, value, procedures of submission, companies and institutions to whom it applies and other provisions related thereto shall be determined by virtue of a cabinet decision. All labour disputes must go through the Ministry of Labour. Illegal residents are liable to be fined/deported. So all depends on whether the ground of termination is legal. 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. 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. Under Article 117 of the UAE Labour Law, a company may terminate an unlimited term employment contract for a valid reason at any time by providing at least 30 calendar days’ notice of termination to the employee (or longer if the employment contract provides for a longer notice period). 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). Please go to https://171.ae/en/?lang=en, your gateway to UAE government services. The employer shall give the worker, upon the request thereof and at the end of his contract, a certificate of end of service gratis in which the date of commencement and termination of the employment, the total duration of employment, the type of work performed, the last paid wage and supplements, if any, shall be mentioned. 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. The labour law provides that a company may terminate an unlimited term employment contract for a valid reason at any time by providing at least 30 calendar days' notice of termination to the employee (or longer, if the employment contract provides for a longer notice period). Employment contract termination is legally allowed under logical reasons. The UAE Labour Law does not include any specific provisions regarding termination of employment during pregnancy. 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. In case of termination under Article 120, the employee is deprived not only of the compensation but also the gratuity. DDA has prepared an electronic form of Gratuity Calculator for sample calculation basis to Licensees and their employees in respect to […] As amended by Federal Law no . Federal Labour Law No. Both on your website and other media. In certain situations, an employer or an employee can terminate an employment contract without notice. The contract shall remain valid for the notice period referred to in the preceding Article, and shall be terminated with the expiry thereof. 12 dated 29/10/1986: a - Should the worker be arbitrarily dismissed, the competent court may order the employer to pay a compensation to the worker. 6.6 Are there any specific procedures that an employer has to follow in relation to individual dismissals? Article 113. The UAE Labour Law provides for two ways in which an employer can lawfully terminate an employee. UAE labour laws for termination are applied as per the type of contract, whether it is limited or unlimited. if the term of the contract expires and is not renewed. Contract types play a major role in specifying the legal liabilities on employee and employee in termination cases. Below is the labour law, as published by the UAE Ministry of Labour with regards to termination of emplyment contracts. Wash your hands regularly for at least 20 seconds and sanitise them often, Wear simple masks and gloves when stepping out, Wear simple masks and gloves inside your homes if you are ill or are taking care of a sick person, avoiding contact with objects that may have been touched by others, cleaning and disinfecting surfaces like countertops, door handles, furniture, toys, phones, laptops, remotes and anything else you use regularly, several times a day, Follow the precautionary measures at your workplace, Trust information from government authorities only, Shake hands or hug and kiss to greet someone, Touch your face; particularly your eyes, nose and mouth, Travel in a car that has more than 3 people, Terminating employment contracts and arbitrary dismissal, notifying in writing at least one month in advance but no longer than three months, honouring the contract obligation for the duration of the notice. Subject to the provisions of the preceding clause, should the employer not repatriate the worker and not pay the expenses of such repatriation, the competent authority shall do so at the expense of the employer. 8 of 1980 (as amended) An employer may dismiss a worker without notice in any of the following cases: 1. c - One month should the worker have worked for a period of five years at least. Article 120 of the UAE Labour lays out the reasons for which termination without notice is lawful. Added by Federal Law no. 1 - The employer and the worker may terminate the employment contract with undetermined term for valid grounds at any time subsequent to the conclusion of the contract, and such after notifying the other party thereof in writing at least thirty days prior to the termination thereof. 26 Jun 2018, 06:58 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? And as per UAE Domestic labour law, government of UAE (ministry) will attempt to resolve the dispute (complaint) amicably within a period of maximum 2 weeks. 2/2015 on Commercial Companies (the "CCL"), the UAE has issued Federal Decree-Law No. If an employee believes that he has been dismissed illegally, he can complain to Ministry of Human Resources and Emiratisation. Such authority may recover such expenses by means of attachment. In all cases, the amount of compensation must not exceed the wage of the employee for a period of three months, calculated on the basis of the last wage the worker is entitled to. 5 - In such case, the thirty-day period referred to in clause 2 of the present Article shall run as of the date of the deposit by the employer of the specified expenses and entitlements into the treasury of the Ministry of Labour with the knowledge of the Labour Department. 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. Under Article 117 of the UAE Labour Law, a company may terminate an unlimited term employment contract for a valid reason at any time by providing at least 30 calendar days' notice of termination to the employee (or longer if the employment contract provides for a longer notice period). Termination of employment under Article 120 of UAE Labour Law. Contract types play a major role in specifying the legal liabilities on employee and employee in termination cases. Should a change occur in the form of the establishment or the legal headquarters thereof, the employment contracts valid at the time of the change shall remain valid between the new employer and the workers of the establishment. Non-national workers obtaining prior to the employment in another job the consent of the Minister of Labour and Social Affairs in accordance with the authorization of the original employer shall be exempt from the provisions of Articles 128 and 129. Any agreement to the contrary shall be deemed void even if concluded prior to the coming into force hereof. 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. 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. Either party can singly terminate a limited contract provided he complies with the legal consequences of early termination. and 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. The employer has to notify the employee within a 30-day notice period according to Article 117 of the UAE Labour Law. This section is about Living in UAE and essential information you cannot live without. if both, the employer and employee mutually agree to end it. 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. An employment contract shall terminate in any of the following cases: 1. 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. 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