Termination of employment in the UAE: Ending a contract,
from the decision to the last payment.

On what grounds can a UAE employment contract end?

Article 42 lists nine ways a contract ends. Only the third is the employer's own decision, and it is the one most of this guide is about. Write the case that applies on the termination record, because the steps and the dues that follow depend on it.

A slower business does not have a separate redundancy route in the articles we read. Unless case 7 or 8 applies, it uses case 3 and gives notice.

How much notice must an employer give?

Article 43 requires written notice for the period in the contract, at least 30 days and at most 90. The period has to be the same for both sides unless a difference favours the employee.

The contract stays in force until the notice ends, and the employee is paid the full last wage for that time. The rules in probation are different: an employer gives at least 14 days.

• One unpaid day off a week: where the employer gave notice, the employee can take it to look for work, after telling the employer at least three days ahead
• Notice served during leave: it starts the day after the employee's scheduled return, unless both sides agree otherwise (Article 35)
• Shorter or waived notice: allowed by agreement, while keeping the employee's rights for the notice period in the contract
• Notice not served: the side at fault pays the wage for the full period or the part left, even if the other side lost nothing
• An indefinite contract from before 2022: Article 65 sets 30 days under five years' service, 60 over five and 90 over ten

When can an employer dismiss without notice?

Article 44 has ten cases, and the probation and notice guide lists them all.

In short they are forgery or impersonation, grave loss or deliberate damage, breach of displayed safety rules, repeated failure in basic duties, disclosing work secrets, intoxication or acts against public morals at work, assault at work, unexcused absence, abuse of position and working elsewhere against the rules. Three conditions run through them.

• A written investigation with the employee comes first, in every case
• The dismissal decision is in writing, gives its reasons and is handed to the employee
• Some cases add steps: two warnings of dismissal for failing basic duties, and a report to MOHRE within seven working days for a grave loss or deliberate damage

The Executive Regulation adds a clock. A violation cannot be charged once it has been known for more than 30 days, and no penalty can follow more than 60 days after the investigation ends. Absence counts when it passes 7 days in a row or 20 separate days in a year. While investigating, an employer can suspend someone for up to 30 days on half wage, and pays the rest back if the case is closed, no violation is found or the outcome is a warning (Article 40).

What makes a termination unlawful?

Article 43 asks for a legitimate reason without defining one, and Article 47 names one case as unlawful: ending the contract because the employee filed a serious complaint with MOHRE, or a claim against the employer that proves valid. Other articles block termination in particular situations, including maternity leave.

What does terminating an employee cost?

Take an expatriate on a wage of AED 15,000, of which AED 9,000 is basic, with six years and three months of service and 60 days' notice in the contract. The employer ends the contract and does not ask for the notice to be worked.

The employee worked 10 days of the final month and has 12 days of leave untaken.

The compensation figure is a ceiling. A court sets the amount from the type of work, the damage and the length of service, and notice pay and gratuity stay payable alongside it. The final settlement guide goes through each line and what can be deducted. If the employer ended the contract in breach of the law, Article 10 also voids a non-compete clause.

How do MOHRE complaints work after a termination?

Either side can apply, and a dispute goes to MOHRE before it can go to court. Article 54 sets the route, and it splits on the amount claimed.

During a dispute MOHRE can make an employer keep paying wages for up to two months if the dispute has stopped them. Claims cannot be heard two years after the employment ends (Article 54). The u.ae disputes page still says one year, citing Article 10; in the current law that one-year limit sits in the non-compete clause. An employee's claim of up to AED 100,000 is free of court fees (Article 55). An employee can also leave without notice, keeping end-of-service rights, in the four cases in Article 45, one of which is an employer's unremedied breach reported to MOHRE 14 working days ahead.

What must happen after the last day?