The Dubai International Financial Centre (DIFC) is renowned for its stringent standards in business and financial regulations.
A well-defined legal framework governs employment within the DIFC.
In this article, we explain how difc employment law termination works and how our legal team can assist.
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Table of Contents
DIFC Employment Law Termination Provisions
Under the DIFC Employment Law (Law No. 2 of 2019), termination of employment follows a structured and fair process.
This law protects the rights of both employers and employees. Below are the main components you need to know:
Notice Period Requirements
Written notice is required for terminating employment. The length of the notice depends on how long the employee has worked.
If the employee has been employed for less than three months, the notice period is seven days.
If the duration of service is between three months and five years, the notice period increases to thirty days.
For those employed for more than five years, a ninety-day notice period applies.
These notice periods can be extended if both parties agree in the employment contract. Employers may also compensate employees in lieu of notice if the employee consents.
Immediate Termination for Cause
Employment may be terminated immediately by either party for cause, such as serious misconduct or a significant breach of contract.
If the employee requests a written explanation for the dismissal, the employer must provide this within fourteen days.
Suppose the employee initiates the termination for cause.
In that case, they are entitled to receive wages for the notice period, a gratuity payment for that period, and payment for any accrued but unused vacation leave.
In contrast, if the employer terminates the employee for cause, the employee forfeits wages for the notice period.
However, they are still entitled to a gratuity calculated up to the termination date, along with payment for any unused leave.
Gratuity Payments
Employees who are not registered with the General Pension and Social Security Authority (GPSSA) and have completed at least one year of service are eligible for a gratuity payment.
The gratuity is calculated based on twenty-one days of basic wage for each of the first five years of service, and thirty days of basic wage for every year beyond that.
The total gratuity is capped at a maximum of twice the employee’s annual wage.
Pension for UAE and GCC Nationals
UAE and GCC nationals are registered under the General Pension and Social Security Authority.
They are not eligible for gratuity but may get a top-up if pension contributions are below the required amount.
Learn about DIFC End of Service Gratuity and understand the DIFC Gratuity Calculator.
Legal Services for Employment Termination in DIFC
Our expert law firm in UAE provides legal services related explicitly to DIFC employment terminations, including:
- Employment Contract Review: Ensuring termination clauses comply with DIFC law.
- Legal Representation: Representing clients in employment disputes before DIFC courts.
- Advisory on Termination for Cause: Helping employers or employees assess legal grounds for dismissal.
- Gratuity and Compensation Claims: Calculating and claiming rightful dues.
- Negotiation and Mediation: Supporting amicable resolution of disputes.
- Filing Legal Claims: Preparing and submitting claims within the legal time limit.
We focus only on DIFC-related employment cases, providing sharp and relevant legal guidance.
Find more services from top lawyers & law firms in DIFC.
FAQs about DIFC Employment Termination
DIFC employment law termination provides a clear structure for ending a work relationship, striking a balance between the interests of both employers and employees.
Understanding your rights and obligations is critical.
If you’re facing a legal issue related to DIFC employment termination, our specialized lawyers can help you protect your rights and secure the best possible outcome.
Contact our law firm in UAE for expert help. Click the Whatsapp icon below.
A law graduate and legal writer focusing on UAE law, he became known for his ability to clarify complex legal concepts through his writings. His work simplifies the intricacies of the legal landscape in the Emirates, helping both locals and expatriates navigate their legal concerns.
