Termination is one of the most contested areas of employment. Whether it is a resignation, dismissal or end of a fixed-term contract, the process and the payments due must follow the law and the contract.
The rules summarised here are general and subject to change. Individual cases depend on the facts.
Types of ending
- Resignation by the employee
- Termination by the employer, with or without notice, depending on the grounds
- End of a fixed-term contract
- Mutual agreement
The type affects notice, final dues and possible claims.
Grounds and procedure
The law lists situations in which an employer may terminate, including for specified serious breaches, and requires certain procedures, such as notice. Termination that does not follow the law may be challenged as arbitrary, and compensation may be available within the limits of the law.
Final dues
On termination, final dues commonly include outstanding wages, leave pay and end-of-service payment where eligible. Request a written statement of dues and keep records of receipt.
Documents for employers
Keep the termination letter, the record of reasons, warnings and any evidence of breach. Provide required documents and cancel permits properly.
Documents for employees
Keep the contract, payslips, termination letter and communications. Do not sign any release unless you understand the amount and effect.
Disputes
If there is disagreement, the process described in labour dispute process may apply. Time limits matter.
Visas and residency
Termination may affect the employee's residence permit, so timelines for status change should be checked.
How a consultation can help
A consultation can review the circumstances and documents and outline options for either side. It does not guarantee any outcome, and court representation is by licensed advocates or other authorised professionals.
Frequently asked questions
Can an employer dismiss without giving a reason?
The law generally requires a lawful basis, and arbitrary dismissal may lead to compensation claims.
Do I get a notice period when I resign?
Notice is governed by the contract and law, and failure to give it can have consequences.
Can I be asked to sign a release?
You can be asked, but you should understand what you are giving up before signing.
Related guides and services
- End-of-Service Gratuity Disputes in the UAE
- Probation and Notice Periods in the UAE
- Labour Dispute Consultation in the UAE: Process and Documents
- Employment & Labour – all guides
- Labour & Employment
- Contract Drafting
General information only. Please read our Legal Disclaimer.