UAE jobs: Does notice period change based on reason of termination?

Question: I was terminated from my job in the UAE due to performance issues, not misconduct. What notice period am I entitled to, and how is my end-of-service calculated?

Answer: In UAE, an employer or an employee may terminate the employment contract for a valid reason, if written notice is given. The notice period must be observed, with work performed during that time, and must be between 30 and 90 days. This is in accordance with the Article 43 (1) of the Federal Decree-Law No. 33 of 2021 Regarding the Regulation of Employment Relationships (the 'Employment Law').

“Either party to the employment contract may terminate the contract for any legitimate reason, provided that the other party is notified in writing and work shall be performed during the notice period agreed upon in the contract, provided that such period is not less than (30) thirty days and not more than (90) ninety days.”

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Further, end-of-service benefits (gratuity) are payable only after completing at least one year of continuous service. This is in accordance with Article 51(2) of the Employment Law, which states:

“The full-time foreign worker, who completed a year or more in continuous service, shall be entitled to end of service benefits at the end of his service, calculated according to the basic wage as per the following:

a. A wage of (21) twenty one days for each year of the first five years of service;

b. A wage of (30) thirty days for each year exceeding such period.”

Therefore, if your employment was terminated before completing one year of continuous service, you are not entitled to an end-of-service gratuity.

An employer is required to pay all outstanding wages and entitlements, as specified in the contract, company policies, or applicable resolutions, within 14 days after the contract ends. This is in accordance with the Article 53 of the Employment Law. 

“The employer shall pay to the worker, within (14) fourteen days from the end date of the contract term, his wages and all his other entitlements stipulated herein and resolutions issued for its implementation, the contract or the establishment’s by-laws.”

In accordance with the aforementioned provision of the law, the notice period is governed by the terms of the employment contract. End-of-service gratuity is applicable only if the employee has completed at least one year of continuous service. Any outstanding dues may be raised with the employer, and if not resolved within the stipulated timeframe, the matter may be escalated to the Ministry of Human Resources and Emiratisation.

Ashish Mehta is the founder and Managing Partner of Ashish Mehta & Associates. He is qualified to practise law in Dubai, the United Kingdom and India. Full details of his firm on: www.amalawyers.com. Readers may e-mail their questions to: news@khaleejtimes.com or send them to Legal View, Khaleej Times, PO Box 11243, Dubai.