Dubai Law Regarding Employment Contracts
UAE’s federal labour law, Federal Law No. 8 of 1980,
and its amendments (UAE Labour Law)
Part IV – Notice Period and Mutual Termination
Unfortunately, there are times when Dubai lawyersand company owners/managers must terminate an employee’s contract. By following proper procedure and consulting qualified local advocates in Dubai, you can avoid expensive penalties whilst ensuring a smooth transition for both employer and employee.
UAE Labour Law employment contracts must contain a notice period of no less than thirty days and no more than three months(UAE Labour Law, Articles 117 &Ministerial Decree 765 of 2015).Once the notice period is set, if either party wants to shorten or eliminate the notice period, compensation is due to the other party (UAE Labour Law, Article 119). The employment contract remains in full effect during the notice period unless the employer decides the employee is not required to perform the job requirements.
Remember that for any type of employment contract, the parties can agree to terminate the agreement mutually, which can remove any fear of liability and lead to a more harmonious ending.