What Are the Rights of a Laid-Off Employee?

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If an employee wishes to terminate a limited-term contract before the end of the term, he must pay the employer "early termination compensation" of half of three months' remuneration.

If an employee wishes to terminate a limited-term contract before the end of the term, he must pay the employer "early termination compensation" of half of three months' remuneration, including salary and allowances, or half of the remuneration for the residual period if the contract has less than three months to run, unless the employment contract provides otherwise. Termination notice period


Article 43 states that either party to an employment contract can terminate it for any 'valid reason,' as long as the other party receives written notice and the terminating party serves a notice of one month (30 days) to three months (90 days). Furthermore, the following provisions must be followed: work as agreed upon in the contract must be performed during the notice period; the worker is entitled to his full wage as per the contract; and the party who fails to serve the notice period must pay the other a 'notice period' allowance, which is equal to the worker's wage for the full notice period or in proportion to the remaining period.


The employee is entitled to an end-of-service gratuity equal to 21 days of basic salary for each year of service during the first five years of work. For each year of service beyond the fifth, the gratuity is increased to a full monthly basic pay. However, the entire sum is limited to a maximum of two years' basic income. If the employee's contract is terminated, his claim for end-of-service gratuity is reduced to one-third of the sum computed using the above technique if the work connection lasted less than three years. Employees who have worked for more than three years but less than five years are eligible for two-thirds of severance pay. If the employee leaves the company after more than five years of work, he is entitled to a full end-of-service gratuity. The employee must be reimbursed for any holidays that were not taken. If an employee takes more leave days than he is entitled to at the end of the job relationship, he must pay the employer monetary compensation.


According to Article 47 of the Federal Decree-Law Number 33 of 2021, it is illegal for an employer to fire an employee for filing a complaint with MoHRE or bringing a lawsuit against the employer whose legitimacy has been confirmed. However, if an employee believes he was fired unfairly, he can approach employment lawyers to file a complaint with the Ministry of Human Resources and Emiratization. The ministry will make every effort to reach an amicable resolution. If no agreement can be reached, the case will be referred to the appropriate court. The court will order the employer to compensate the employee if arbitrary dismissal is shown. The court will determine the value of compensation by considering the type of work, the extent of the employee's injuries, and the length of his employment. In all situations, the amount of compensation shall not exceed the employee's wage for a three-month period, computed on the basis of his most recent wage. Disciplinary action must be performed within a relatively short period of time. An employer must commence disciplinary action within 30 days of discovering the misbehavior, and any disciplinary consequence must be decided within 60 days of the investigation's conclusion. It's critical to get the procedure right before implementing a particular disciplinary consequence in order to avoid litigation or, in the worst-case scenario, to protect the employer if an employee files a claim. If an employer fails to follow the required procedure, the ultimate disciplinary penalty may be declared unlawful by the Labor Courts (regardless of the employee's bad performance or behavior). Thus, employees in the UAE may file claims for arbitrary dismissal under the UAE Labor Law, which is comparable to the unfair dismissal notion in the United Kingdom. The outcome of any such claim will ultimately be determined by the reason for the termination and the process followed by the employer prior to terminating the employment. As a result, it is critical for employers to follow the proper method from the beginning.