The UAE Labour Law (Federal Decree-Law No. 33 of 2021, effective 2022) governs employment relationships in the UAE mainland. Here is a complete guide to termination, notice periods, and employee rights.
UAE Employment Contract Types
Under the 2022 UAE Labour Law, all UAE employment contracts are: fixed-term (a specific end date, maximum 3 years, renewable). The previous “unlimited term” contract type was abolished — all contracts issued or renewed after February 2022 must be fixed-term. Implication: both parties know the end date. Termination before the end date triggers early termination compensation if the employer terminates without cause.
UAE Notice Period Requirements
Minimum notice period required under UAE Labour Law: 30 days for employees completing less than 1 year, 30–90 days as per the employment contract (minimum 30 days) for employees after probation completion. Maximum notice period: 90 days. Paying in lieu of notice: an employer may pay the employee’s salary for the notice period instead of requiring the employee to work the notice period. Garden leave: employees can be placed on “garden leave” during the notice period (not required to come to work but still paid).
Legitimate Grounds for Termination Without Notice
An employer can terminate without notice (and without end-of-service gratuity obligation) if the employee: commits gross misconduct (assault, fraud, drunk on duty, safety violation), fails to perform their basic duties after formal written warning, reveals confidential company information causing damage, is absent from work for 20 consecutive days or 30 non-consecutive days in a year without valid excuse. Important: the employer must document the misconduct and give the employee an opportunity to respond (disciplinary hearing) before proceeding to dismissal without notice. Undocumented dismissals almost always result in MOHRE claims in the employee’s favour.