How to properly fire an employee according to UAE laws?

The procedure for firing an employee in the UAE requires strict adherence to legal norms and procedures and not knowing the details can lead to serious consequences, including legal disputes, fines and losses for your company. International law firm Antwort Law specializes in UAE labor law and is ready to help you carry out your dismissal in strict accordance with the law. Let's consider the main points of the process of dismissal of an employee under the laws of the UAE.

Situations in which the employment contract can be terminated

According to Article 42 of the Federal Law No. 33 of 2021, which regulates labor relations in the private sector of the UAE, the employment contract can be terminated in the following cases:

• Expiry of the contract without its extension;
• Mutual consent of the employer and the employee, executed in writing;
• Unilateral termination of the contract with notice and compliance with the provisions on the notice period;
• Death of the employer, if the activity is related to the subject of the contract or the employee;
• Conviction of an employee for more than three months;
• Closure of the enterprise or emergence of economic or extraordinary circumstances;
• Bankruptcy or insolvency of the employer;
• The employee's failure to comply with the conditions of the extension of the work permit.

As you can see, dismissal is possible for various reasons and a correct assessment of the situation allows you to avoid additional risks. We will help you competently analyze and choose the best option for terminating the employment contract with minimal risks for your company.

How to follow the dismissal procedure?

According to Art. 43 of the Labor Code of the UAE, termination of the employment contract for a "legitimate reason" requires compliance with the following conditions:

• Written notice from the other party;
• Compliance with the notice period of 1 to 3 months (30-90 days), which can be shortened or canceled by mutual agreement.

It is important to remember that the employee is entitled to pay during the notice period and must continue to perform his duties during this period. If one of the parties does not comply with the notice period, the compensation will be equivalent to the salary for the full notice period or proportional to the remaining time.

Termination of the employment contract without notice

Article 44 of the UAE Labor Code gives the employer the right to dismiss an employee without prior notice in the following cases:

• Use of false information or falsification of documents;
• Causing significant material damage to the enterprise;
• Violation of safety instructions;
• Failure to perform basic duties after two warnings;
• Disclosure of commercial secrets;
• Being under the influence of alcohol or prohibited substances at the workplace;
• Absences from work without a good reason - more than 20 days in total or 7 days in a row per year.

In order to be legally dismissed for these reasons, a written investigation must be conducted and the employee must be given reasonable notice.

Arbitration Dismissal: If an employee has been dismissed for filing a legitimate complaint with the Ministry of Human Resources and Emiratization (MoHRE) or a court of law and the complaint is found to be valid, the dismissal is considered illegal. In this case, the employee can go to court and receive compensation that does not exceed three months' earnings.

After the termination of the employment contract, the employee has the right to obtain a new work permit and be employed in another company. For this, a certain period is provided, during which the employee must draw up a new contract or leave the country to avoid deportation and fines.

We recommend that you contact us before a final decision on dismissal is made in order to minimize the risk of arbitration proceedings. Antwort Law will advise you at every stage of the dismissal process and help you avoid mistakes that could affect your reputation or lead to financial losses. Our team of experienced lawyers specializes in UAE employment law and provides professional support at every stage of the process.

Lidia Ivanova

International lawyer
Antwort Law

Diana Gulevskaya

Partner
Antwort Law