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UAE: What are the rights of an employee after being fired?

Over the past few months, the tech industry saw mass layoffs. With the industry witnessing fewer employee retention, here are some of the rights employees who are fired in UAE will be eligible for.

by Arya Devi
employee layoff
by Arya Devi

Over the past few months, the tech industry saw mass layoffs. Alphabet, Microsoft, Meta and Twitter axed employees in thousands at moments’ notice. With the industry witnessing fewer employee retention, it is important for an employee to know and understand their rights after being dismissed. In the UAE, the Ministry of Human Resources and Emiratisation (MOHRE) has stringent laws to support and protect employees.  

If an employee believes that he has been dismissed illegally, he/she can complain to MOHRE. The ministry will try to solve the issue amicably. If an amicable settlement is not reached, the case will be referred to the respective court.

Under the UAE Labour Law, an employer can fire an employee with or without notice period under the following circumstances.

Termination with notice

Article 43 provides that either party in the employment contract can terminate the contract for any ‘legitimate reason’, provided that:

  • A written notification is given to the other party and
  • The terminating party serves a notice of 1 month (30 days) to 3 months (90 days).

Additionally, the following provisions must be adhered to:

  • 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, for the notice period
  • 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 allowance for the notice period is calculated according to the last wage received by the worker.
  • In the event that the employer terminates the contract, the worker is entitled to an unpaid leave of one day per week during the notice period to search for another job.

The notice period may be reduced or exempted on mutual agreement between the two parties, with no infringement of any parties’ rights.

After termination or expiry of the contract, you will get a grace period from the date of cancellation, in which you can either obtain a new work permit and residency or leave the country.

An employee may not get a work permit for one year from the date of his/her departure from the UAE if:

  • He/she terminates the employment contract during probation period, provided that the employer had not breached contractual obligations
  • A ‘work abandonment’ report against him/her was found to be true.

For more details, visit the UAE government portal.