Termination of employment in the UAE is governed by Article 42 of Federal Decree Law No. 33 of 2021, which outlines the legal grounds for ending a contract.
Either the employer or the employee may terminate the employment contract, provided they give proper notice and meet legal conditions.
Arbitrary dismissal occurs when an employer ends a contract for reasons not permitted by law, such as filing a complaint with MoHRE or a lawsuit.
This article explains the lawful termination process, employee protections, and compensation entitlements under the UAE Labour Law as of 2025.
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Termination of Employment in the UAE
Employment in the UAE can be terminated legally under Article 42 of the Federal Decree Law No. 33 of 2021. This includes:
- Contract expiration without renewal.
- Mutual written agreement.
- Termination by either party, with notice served.
- Death of the employer or employee (if relevant to the contract).
- The worker’s permanent disability is backed by medical proof.
- Final court conviction of the worker for 3+ months.
- Business closure or employer bankruptcy.
- Failure to renew the employee’s work permit for reasons beyond the employer’s control.
Under Article 43, proper notice (30–90 days) must be served. Wages during notice must be paid. The terminating party who fails to serve notice must compensate the other.
Our law firm’s legal services related to the termination of employment in the UAE include:
- Drafting and reviewing termination letters.
- Legal advice on employer and employee rights.
- Representation during MoHRE investigations.
- Assistance with employment contract interpretation.
- Guidance on compliance with Articles 42 and 43.
Find UAE Labour Law Legal Advice.
Learn about employment termination in UAE free zones, including JAFZA Employee Termination Rules, DMCC Termination of Employment, and DMCC Arbitrary Dismissal.
Find more services from Top Labour Law lawyers in Dubai.
Wrongful Termination UAE
Wrongful termination (or arbitrary dismissal of employees) occurs when an employer ends a contract for illegitimate reasons. According to Article 47, it is considered arbitrary dismissal if:
- The employee is terminated for filing a complaint with MoHRE.
- The dismissal follows a lawsuit filed by the employee against the employer.
Such dismissals are illegal, and the affected worker has the right to file a complaint with the Ministry of Human Resources and Emiratisation (MoHRE). If no amicable resolution is found, the case goes to court.
Other wrongful termination cases arise if the employer:
- Fails to meet contractual/legal obligations.
- Assaults or harasses the employee.
- Assigns work outside the contract without consent.
- Ignores workplace health or safety dangers.
Employees must notify MoHRE within specific deadlines for their complaints to be valid.
Our legal consultants in Dubai offer legal services related to wrongful termination in the UAE, which include:
- Filing MoHRE complaints and court claims.
- Legal documentation for arbitrary dismissal cases.
- Employee defense during illegal termination disputes.
- Employer defense in wrongful termination lawsuits.
- Negotiation for settlements or reinstatement.
Compensation for Termination of Employment
If termination of employment is proven to be arbitrary dismissal, compensation is awarded by the court. This compensation considers:
- Nature of the employee’s work.
- Damage suffered by the employee.
- Duration of employment.
The maximum compensation is equal to three months’ salary, calculated using the last drawn wage. In addition, the employee is entitled to:
- Unpaid salary.
- Notice period pay.
- End-of-service gratuity.
- All other contractual dues.
Post-termination, employees can switch jobs if the contract ended legally.
However, under Ministerial Resolution No. 47 of 2022, work permits may be restricted for one year if the employee leaves during probation without justification.
Our law firm’s legal services related to compensation for termination of employment in the UAE include:
- Filing compensation claims in court.
- Calculation of dues and gratuity.
- Legal support for unpaid wages.
- Representation in employment disputes.
- Legal advice on job transfer and post-termination rights.
FAQs about End of Employment in UAE
Need help with termination disputes in the UAE? Our legal team specializes in employment law and can assist with navigating every stage of the termination process—legally and effectively.
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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.
