Termination in the UAE

Approved Reasons for Termination

Either the employer or employee can terminate a contract of service. Termination may happen because:

• Resignation
• Dismissal
• Contract term expired

Both parties must follow the terms and conditions for termination as stated in the contract of service.

It is an offence for employers to disallow employees to leave their job. Employees have the right to resign at any time, by serving the required notice or by paying compensation to the employer in lieu of notice.

Termination with Notice

• Minimum notice period: 30 days, maximum 90 days, as agreed in the employment contract (must be equal for both parties unless in the worker’s favor).
• Employer/employee must provide written notice and continue working during the notice period unless mutually waived.
• The party ignoring notice must compensate the other with pay equivalent to the remaining notice period.
• If the employer initiates termination, the employee is entitled to one unpaid day per week to seek new employment, with at least 3 days’ prior notice for the absence.

Probation Termination Notice

• During probation (max 6 months): both parties can terminate with 14 days’ written notice.
• If the employee resigns to leave the country, a 14-day notice is required.
• If the employee resigns to join another UAE employer, a 30-day notice is required and the new employer must compensate the previous one for recruitment costs, unless all parties agree otherwise.

Immediate Termination without Notice

• Termination without notice can happen in situations such as breaking the terms of the contract, failure to pay salary and absence without cause.
• Either employee or employer may terminate a contract without waiting for the notice period to end.
• Either party can do so by paying the other party compensation in lieu of notice (“notice pay”). This is money equivalent to the salary that employee would have earned during the required notice period.

Permissible for gross misconduct, including:

• Fraud, falsifying documents, serious negligence (after two written warnings + written investigation),
• Breach of safety rules, revealing confidential information,
• Assault, alcohol/drug use at work,
• Unjustified absence (7 consecutive or 20 intermittent days),
• Abusing position, working for competitor

Proper written investigation and justified dismissal letter are mandatory.
End‑of‑service gratuity remains payable, except in cases of gross misconduct proven in court.

Employee Resignation without Notice

Allowed when:

• Employer breaches contract or fails to resolve complaints (after notifying MOHRE 14 days prior),
• Physical/sexual harassment (reported within 5 days),
• Assignment of fundamentally different work without consent,
• Serious safety hazards unaddressed

Protection against Arbitrary Dismissal

• Termination is arbitrary (unlawful) if based on the employee raising a MOHRE complaint or legal claim.
• In such cases, the employee may claim compensation of up to 3 months’ salary.

Termination-related Entitlements

• End-of-Service Gratuity based on basic pay:
  • 21 days × years 1–5; 30 days × years beyond 5; capped at 24 months’ wage
• Accrued leave payouts, notice period salary, and other contractual benefits must be settled within 14 days of contract termination
• Employer must cover return airfare/home ticket, if specified in contract or termination scenario demands for employer responsibility.

Please note that all the information listed below are to be used as a general guideline. For more detailed accounts of UAE employment laws and regulations, please visit the official governmental websites.

Updated on: November 2025