Home > GCC Guides > UAE labour law Termination ,Compensation, Benefit, Notice period, Article 120, pay, Dismiss, Termination of Contract limited and Unlimited

UAE labour law Termination ,Compensation, Benefit, Notice period, Article 120, pay, Dismiss, Termination of Contract limited and Unlimited

UAE labour law Termination ,Compensation, Benefit, Notice period, Article 120, pay, Dismiss, Termination of Contract limited and Unlimited United Arab Emirates. What united Arab Emirates Labour law article mentioned about Termination of contract and reasons?

Article 113 UAE labour law Termination of Employment
 
An employment contract shall terminate in any of the following cases:
1. By mutual agreement of the Parties, provided that the worker’s consent is given in writing;
2. Upon expiry of its term, unless it has been expressly or implicitly extended according to the provisions of this Law;
3. For the convenience of either party to an indefinite term contract, provided that the provisions of this Law concerning the notice and the valid grounds of termination without arbitrariness are adhered to.
Article 114 UAE labour law Termination on Death
 
An employment contract shall not terminate by reason of the employer’s death unless the subject of the contract is connected with his person. A contract shall, however, be terminated by reason of the worker’s death or total disability to work, as established by a medical certificate approved by the competent health authority in the State. If a worker is capable, notwithstanding partial disability, of performing other work consistent with his state of health, the employer shall assign him, at his request, to that other work, if available, and pay him the wage normally paid to holders of such jobs, without prejudice to any entitlements and compensation due to the worker under this Law.
 
Article 115 UAE labour law Termination Compensation for Worker
 
Where an employment contract is for a definite term and the employer revokes it for reasons other than those specified in Article (120) he shall be required to compensate the worker for any damage the latter sustains, provided that the amount of compensation shall in no case exceed the aggregate wage due for a period of three months or the remaining period of the contract, whichever is shorter, unless otherwise stipulated in the contract.
 
Article 116 UAE labour law Termination Compensation for Employer
 
Where a contract is revoked by the worker for reasons other than those specified in Article (121), he shall be required to compensate the employer for any damage the latter sustains as a result, provided that the amount of compensation shall not exceed half a month wage for three months or for the remaining period of the contract, whichever is shorter, unless otherwise stipulated in the contract.
 
Article 117 uae labour law termination notice period
 
1. Either the employer or the worker may terminate an indefinite term contract for a valid reason at any time following its conclusion, by giving the other party a notice in writing at least 30 days prior to termination.
2. For the daily-paid workers, the notice period shall be as follows:
• One week: if the worker has been employed for more than six months but less than one year.
• Two weeks: if the worker has been employed for not less than one year.
• One month: if the worker has been employed for not less than five years.
 
Article 118 uae labour law termination Pay
 
A contract shall subsist throughout the notice period referred to in the preceding Article and shall terminate only on expiry of that period. The worker shall be entitled in respect of the notice period to full pay, calculated on the basis of his last wage, and shall continue to perform his duties during that period if the employer so requests. The Parties may not agree to waive the notice requirement or to reduce the notice period; however, they may agree to extend the period.
 
Article 119 UAE labour law compensation in lieu of notice
 
If either the employer or the worker reduces the period of, or fails to serve a notice of termination on the other, the forbearing party shall pay the other a “compensation in lieu of notice”, irrespective of whether or not the other party has sustained damage as a result of such failure or shorter notice. The said compensation shall be equal to the worker’s wage in respect of the entire or reduced period of notice. Compensation in lieu of notice shall be calculated on the basis of the last wage received, in the case of monthly, weekly, daily and hourly paid workers, and on the basis of the average daily wage referred to in Article 57 of this Law in the case of those paid on piecemeal.
 
Article 120 UAE labour Law dismiss a worker without notice Reasons
 
An employer may dismiss a worker without notice if and only if the worker:
1. Assumes a false identity or nationality or submits forged certificates or documents.
2. Is engaged on probation and is dismissed during or at the end of the probationary period;
3. commits a fault resulting in substantial material loss to the employer, provided that the latter notifies the labour department of the incident within 48 hours of his becoming aware of its occurrence;
4. disobeys instructions on the safety of work or workplace, provided that such instructions are in writing and posted at a conspicuous place and are communicated verbally to the worker, in case he is illiterate;
5. defaults on his basic duties under the contract and fails to redress such default despite a written interrogation and a warning that he will be dismissed if such default is repeated;
6. is finally convicted by a competent court of a crime against honour, honesty or public morals
7. reveals any confidential information of his employer;
8. is found in a state of drunkenness or under the influence of a narcotic drug during working hours;
9. assaults the employer, the manager in charge or any of his workmates during working hours; or
10. absents himself from work without a valid reason for more than 20 nonsuccessive days in one single year, or for more than seven successive days.
 
Article 121 UAE labour Law abandon his work without notice
 
A worker may abandon his work without notice in either of the following cases:
1. If the employer fails to honour his obligations towards the worker, as provided for in the contract or in this Law.
2. If he is assaulted by the employer or the employer’s legal representative.
 
Article 122 UAE labour Law Termination of employee Legal right
 
A worker’s service shall be deemed to be arbitrarily terminated by his employer if the reason for termination is irrelevant to the work. More particularly, a termination shall be regarded as arbitrary if it is prompted by a formal complaint filed by the worker with the competent authorities or a legal action instituted against the employer that proved to be valid.
 
Article 123 UAE labour Law Termination Benefits and uae labour law termination gratuity
 
1. Where a worker is arbitrarily dismissed, the competent court may order the employer to pay him a compensation, to be assessed by the court with due regard to the nature of the work, the extent of damage sustained by the worker and his period of service, and after investigating the work circumstances, provided that such compensation shall in no case exceed the worker’s wage for three months, calculated on the basis of his last wage.
2. The provisions of the preceding paragraph shall not prejudice the worker’s right to the gratuity he is entitled to and the compensation in lieu of notice provided for in this law.
 
Article 124 UAE labour Law Termination because of Medical Fitness
 
An employer may not terminate the service of a worker for lack of medical fitness before the worker exhausts all the periods of leave legally due to him. Any agreement to the contrary shall be null and void, even if concluded before this Law comes into effect.
 
Article 125 Document to be provided while Terminating and Experience Certificate
 
The Employer shall provide the worker, at the latter’s request upon expiry of his contract, with an end of service certificate, which shall be free of charge and shall specify the service commencement and end dates, total period of service, the nature of the work he was performing, and his last wage and supplements, if any. The Employer shall return any certificates, documents and tools belonging to the worker.
 
Article 126 UAE labour law change occurs in the form or legal status of the firm
 
Where a change occurs in the form or legal status of the firm, employment contracts that are valid at the time of such change shall remain in force between the new employer and the firm workers, and their service shall be deemed to be continuous. The original and the new employers shall remain jointly liable for a period of six months for the discharge of any obligations resulting from employment contracts during the period preceding the change; after the lapse of that period the new employer shall solely bear such liability.
 
Article 127 – uae labour law termination of contract
 
Where the work assigned to a worker allows him to become acquainted with the employer’s clients or to have access to his business secrets, the employer may require him to undertake not to compete with him or participate in any enterprise competing with his own, after the termination of his contract. For such an undertaking to be valid, the worker must be at least 21 Gregorian years of age at the time the agreement is concluded, and the agreement must be confined, in terms of time, place and the nature of the business, to the extent necessary to safeguard the employer’s legitimate interests.
 
Article 128 – uae labour law termination limited contract
 
A non-National worker, who abandons his work without a valid reason before the expiry of his definite term contract, may not, even with the employer’s consent, take up other employment until the lapse of one year from the date on which he abandons his work. No other employer may knowingly recruit such worker or keep him in his service before the lapse of such period.
 
Article 129 uae labour law termination of unlimited contract
 
A non-National, who notifies the employer of his desire to terminate his indefinite term contract but abandons his work before the expiry of the statutory period of notice, may not, even with the employer’s consent, take up other employment until the lapse of one year from the date on which he abandons his work. No other employer may knowingly recruit such worker or keep him in his service before the lapse of such period.
 
Article 130 Labour law Provisions in Article
 
The provisions of Articles 128 and 129 shall not apply to a non-National worker who, before taking up other employment, obtains the approval of the Minister of Labour and Social Affairs based on the consent of the original employer.
 
Article 131 UAE Labour Law What to do if Contract Expire
 
Upon expiry of contract, the employer shall bear the cost of the worker’s repatriation to his point of hire or to any other point that was mutually agreed upon. Where a worker joins another employer upon expiry of his contract, the latter shall bear the cost of the worker’s repatriation at the end of his service. Without prejudice to the foregoing, if the employer fails to return the worker or to pay his repatriation expenses, the competent authorities shall do so at the employer’s expense and may then recover any expenditure incurred in this connection by attachment. Where the reason for the termination of the contract is attributable to the worker, his repatriation shall be at his own expense if he has the means to pay.
Article 131 (repeated 1)
1. For the purpose of the preceding Article, the worker’s “repatriation expenses” refers to the value of his travel ticket as well as the travel expenses of his family and the cost of shipping of his personal effects, as stipulated in the Labour contract or the firm’s policies.
2. A worker who is provided with accommodation by his employer shall vacate it within thirty days from the date of termination of his service.
3. The worker shall not overstay in the accommodation beyond the specified period for any reason, provided, however, that the employer pays the worker the following:
• the expenses specified in paragraph 1 of this Article.
• severance pay and any other entitlements the employee is bound to pay in accordance with the employment contract, the firm’s policies, or the law.
4. if the worker contests the amount of the expenses and entitlements referred to above, the Labour Department concerned shall urgently determine these expenses and entitlements within a week from notification, and shall promptly inform the worker accordingly.
5. In this case, the thirty-day grace period referred to in paragraph 2 of this Article shall be calculated to run from the date on which the employer deposits the value of the expenses and entitlements, as determined by the Labour Departments concerned, with the Ministry of Labour’s treasury. If the worker does not vacate the accommodation within the said thirty-day period, the Labour Department, with the assistance of the authorities concerned in the Emirate, shall take the necessary administrative measures for eviction.
6. The provisions of this Article shall not prejudice the worker’s right to contest its application before the competent court.
Article 131 (repeated 2)
1. Employer shall submit to the competent labour department a bank guarantee whose type, value, submission procedures, firms and companies to whom it is applicable, and other relevant terms shall be specified in a Council of Ministers’ resolution. This guarantee shall be used to ensure optimum fulfillment of employer’s obligations provided for under Articles 131 and 131 (repeated), of this Law.
 2. Deduction of any amount from the bank guarantee referred to in paragraph 1 hereof shall be based on a court judgment, with the exception of the following:
• Cost of a worker’s repatriation to his country of origin or the point agreed upon with the employer.
 • The amounts that the employer admits before the competent labour court that they are due to the worker. In these two cases, the Ministry reserves the right to deduct such entitlements from the guarantee referred to in paragraph 1 hereof and pay to the worker in fulfillment of his established dues.
 
Article 37 – uae labour law termination during probation period
 
A worker may be employed on probation for a period not exceeding six months, during which the employer without notice or severance pay may terminate his services. A worker shall not be placed on probation more than once with the same employer. Where a worker successfully completes the period of probation and continues in employment, the said period shall be calculated as part of his period of service.
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139 comments

  1. Im working in a L.L.C company as a driver for almost one year ..but they terminate me with notice period before my contract will be end..what are the benefits i can after with my employer..i need your reply please..thanks

  2. I am working for 9 years and just recently i made a mistake which i informed my manager and i am willing to pay the amount to be deducted from my gratuity.If my employer will terminate me with this reason am i still entitled for my gratuity? This is the 1st mistake please help me.Thank you Rose

  3. But you didn’t answer my full questions as I mentioned that my probation period is over I mean I was workin in the end of seven months and……..plz reply accordingly thanks

  4. Hi I’m gp doctor,my employer terminated me without mentioning valid reason after seven months of unlimited contract and stopped my salary for two months and harrased me saying if you go to Ministery of labour then we won’t give you noc and experience letter and he also cheated me by changing my contract as he mentioned that all the things n benefits which are mentioned in offer letter he will put as it is in contract but he didn’t n now he called two days before for settlement,kindly advise me thanks millions

    • Dear rizwan,

      Employer have right to terminate an employee if they are not satisfied with work buisiness change or loss but they do not have right to harass or block salary and benfits.

      You can file complaint in labour court if they are doing so

  5. Rovie Romeo Larido

    Im working in a L.L.C compny as a cleaner for almost one year and 20 months..but they terminate me before my contract will be end..what are the benefits i can after with my employer..i need your repls please..thnks

    • Dear rovie,

      all pending slary, end of service gratuity benefits, return ticket back to home. 3 month salar compensation if your cotract is limited

  6. hi..im on my 3month probation period under unlimited contract and my employer terminated me because his not satisfied with my work but the thing here is i have not yet undergo medical clearance.What is the best thing to do since my employer is telling me that he will not continue applying for my working visa.how will the process of cancellation of my visa be done.and for how long will it take.thanx…

  7. May I ask what are the specific benefits I can get? can you please indicate everything. thank you for your response

  8. I am not a UAE national. I got an offer from a company in Dubai. They says the contract is of 2 years. If I join here and get any better opportunity in between this contractual period, can I resign by giving the minimum notice period of one month? Should I pay the company anything in that case? What if the company is not ready to terminate the contract before this 2 years on my request? Does the company can impose any kind of ban on me to work further in UAE?

  9. Hi myself satish . I was in unlimited contract but my company terminated me saying restructuring of the company . What all the benefits i can avail . I heard that employer have to book return ticket and pay for extra weight for luggage also if any is there any rule if so please mention the clause so that i can ask my HR person to book return ticket which includes extra luggage .

  10. iam working in a unlimited contract ,now my visa renewed on 02/11/2016,but unfortunately company decided to terminate me 0n 06/11/2016 by saying i am a latecomer in daily work …when i renew my visa company demand to put signature in an affidavit prepare by the company mentioning that employer should give visa expenses during the cancellation of visa….now company told me that final settlement will give to me after deducting visa expense…….is any validity in front of law such affidavit peaes help me ….

  11. Am Phillimon, i am working with a LLC management in Sharjah but have with the company for now 10 months. i work hard, over time and am paied less.

    I have found a new job and i want to resign and join my new job. my present employer still has my passport.
    My question is What can do to avoide cofilicts with my present employer?

    • Dear phillimon,

      Employer do not have right to hold employer passport and you can resign anytime if you found better opportunity. While resigning you may have to pay hiring compensation as per company policy

  12. Hello

    I have resigned a couple of weeks back from an unlimited contract. My employer decided to waive the requirement to serve the notice period. However in my final settlement the employer is not including the notice period as part of the end of year package.

    Am I entitled to the notice month as per my contract if the employer decided that I can skip serving it?

    Thanks
    Raspoutnikof

  13. m working with an LLC company on unlimited contract since July 2014. My salary is more than 10K AED. I got my visa renewed in Aug 2016 but i did not want to continue with company and resigned on 6th Sept and gave one month notice to company. Company requested me to continue to handover responsibilities to fellow staff to which i agreed verbally. They are going to cancel my visa in first week of Nov. Now i have my passport with me and i do not want to hand over my passport to the company for cancellation as i am afraid that they may keep my passport with them after cancellation and will only give it to me on airport, to avoid this i will tell my company that i will keep my passport with me and go along with PRO for cancellation of company visa my self. My question is that can company force me to hand over my passport to them for cancellation or i can tell them that i will keep my passport with me and give to immigration officer my self for visa cancellation?

    Regards,
    Khan

  14. Hi, I have an unlimited contract, my boss is terminating me, he didn’t give me any letter just verbally. I’ve been working in his company for almost 1 year and 1 month if I based it on my offer letter which I started last 27 October 2015, but on my labour contract, it dated on 21 December 2015. I want to know the benefits that I might received if there is any. Thank you so much

  15. angela jayne macapugay

    Good day! I have an employment contract in the UAE. and was assigned in Kuwait for a project. The project ends and we were informed verbally that our services are not needed here in Kuwait. What benefits are we supposed to receive for the services rendered in Kuwait? Are we supposed to receive such benefits upon return in the UAE?

  16. Iza.
    Hi goodday. I am now 1year at my company with unlimited contract and i was on local leave last month when i get back to work my boss told me to find another job coz they are cost cutting. They will not cancel me until i find new job. And i informed them I’ll go home but he told me to make a resignation letter. They did not give me a notice letter just told me verbally. What should i do?i dont think they’ll give me a compensation coz he told me to make a resignation letter.thanks. looking forward to reply

    • Dear Iza,

      Our recommendation is to find better job and resign. if would like to resign and go back to home you will not get termination benefits like flight ticket back to home. in unlimited contract company no need to pay termination compensation like 3 month salary.

  17. Hello,

    I am currently working in a Hotel as a Bar manager. Now the Hotel wants to close down the Outlet I am working in to cut the costs and fire me. I am still in probation period. They gave me a notice period of 8 days. Am I entitled to some benefits? Flight ticket, extra money etc…
    Thank you in advance for your response.

  18. I AM WORKING IN A COMPANY INSIDE RAK MARITIME CITY .I JOINED THE COMPANY 26 SEP 2015.I HAVE COMPLETED MY PROBATION PERIOD AND EVERYTHING.I GOT TERMINATION LETTER ON 15 SEP 2016 TILL 15 OCT 2016.WHAT ARE THE BENEFITS THAT THE COMPANY MUST PROVIDE ME FOR THE SETTLEMENT.THE REASON FOR THE TERMINATION IS DUE TO COST CUTTING.ITS A FREEZONE VISA (UNLIMITED)

  19. Dear admin

    Plz advise me what shoud i do. My boss only paid me for 2 months.. my 10 months salary is still pending.My 1 year with the company is completed now i want to chane my job bt my 10 months salary is still pending what shud i do

  20. Hi Admi,

    I was in probation period, visa started on 15th march 2016, my employer told me to stop work because to high salary ( by whatsup only), i told him ok just give me compensation and i will leave, i didn’t get any official notification,
    he asked me to leave 15 days before end of probation so on 15th september, i was working till 6th september ,i sent him an email in 6th september 2016 to confirm to me if i can continue work, i also wrote in this email if i don’t have any feedback from him i will take 1 week vacation but from this time no news and i cannot come to the office, they have shift office to another location,

    I took 1 week vacation as it was eid holidays, after this period i was more than 6 months…

    I have pay familly visa 1 month before to tell me my termination, can i expect to get refund from him?

    What is my right?

    What should i do?

    thanks a lot

    • Dear tito,

      If you get termination before completing probationary period then will get normal benefits like flight ticket and pending salary.since you still did n’t get confirmation about termination you will get termination benefits(if your contract is limited).you will not get compensation for family visa

  21. Plz help we what shud i do.. i havent been paid for almost 12 months as per my contract. My boss only give me money for my pocket expenses and ask we to wait until company gets betr wil pay ur all dues.. now i am asking for my salary for the previous 12 months bt he is not agrree.. he is sayng u dont have any salary pending with us.. and agorcding to my contrct almost 45000 drhms are stil pending.. plz help me what shud i do…

  22. I m working in a local bank of more than 6 years now they are going to terminate for not doing my target for last 3 months and so. Shall I be eligible to get 3 salary plus end of survive benifits and a ticket ?
    Please advice

  23. The company terminated me after completion of 5 month and 25 days under the probation period and the reason is not satisfied in my work. they only inform me verbally not to come on duty. And what i will get the compensation and benefit also i have worked in holiday and extra hour. May i find the other job in UAE without facing ban? My visa is clerk and unlimited contract.

    • Dear kaphar,

      If termination reason is employer not satisfied with your work then will not get any extra benefits.you will get flight ticket back to home and pending salaries.there will not be any ban to search new jobs

  24. Dear Admin Can I have your advise, I was terminated because of cost cutting of the company with 1 month noticed period worked 10 month in the company but when I received the computation there is no compensation of 3 months salary which stated in the Article 122/123 of UAE law, which the termination is not based in article 120. Do I have the right to complain and ask for it? I am in limited contract…
    Need your advise as soonest time…. thank you very much..

  25. Dear Admin,

    I was asked by my company to give them my passport. I said that I can give it only if they provide me letter stating that they have received it & will give back upon my request. They refused and terminated me not stating any reason in letter. I have been working in the company for 2 years. Please, advise what I am entitled for and should i complain to labour about that.

    Thank you in advance.
    Olga.

  26. Michael Angelo Liwanag

    Dear Admin,

    I am now working for a LLC company Unlimited contract for 8 months and now i’m having a problem for my last 3 months salary as i am not receiving my complete salary from my employer, And now my Boss is forcing me to resign and want’s me to decide urgent, but i am wondering that he want’s me decide as urgent though they did not yet give me my balance salary. Please advise what i am going to to do.

    Thanks

    • Dear mechael,

      Employer not allowed to block employees salary.if employer forcing to resign unless clearing all your pending payment.dubai labour law will be with you

      • Michael Angelo Liwanag

        Dear admin,

        Please advise what to do?. Should i consult to Ministry of labour now?. And if i consult to labour law what are the benefits i will get?

        Thanks

        • Dear michael,

          We recommending you to solve your issues by discussing with employer.if they are not agree to pay your pending salary then you can contact labour court.untill you get complete salary do not sign any letter even if they are forcing to do

      • Admin,

        Should i consult to Ministry of labour now?. And if i consult to labour law what are the benefits i will get?

        • Michael Angelo Liwanag

          Dear Admin,

          Until now my boss is forcing me to resign, and i inform him that i will not resign without receiving my balance salary. And now my boss threatened me to Terminate me. If ever i resigned do they give me a ban?. And id ever they terminate me what are the compensation will i receive.

          Thank You.

          • Dear Michael,

            there will not be any ban if you resign but do not resign without finalizing regarding pending payment. if the are terminating then its better to go to labor court

  27. Hi admin. I am in a limited contract (2 yrs) but 5 months before my contract ends my company terminated me due to cross cutting. my first question is will i get a ban? and secondly am I entitled for any compensation? hoping for your kind response.

  28. Hi, Please help me to enlighten my situation right now. Im on my 2 months probationary period. And I want to resign with my present employer. And im planning to submit my resignation as soon as possible as there is a wonderful offer me in other company. I dont have emirates ID yet and my passport is not yet stamped by immigration for residence visa. Ive already discussed this issue to my employer and they are willing to gave me an NOC if ever i will resign. My question is will I get a ban if i resign in my present employer now. Hope you can revert me ASAP.

    Thank you.

  29. Hi, Admin. I need a help. i resigned from my post and gave 30 days to my company as a notice period. i worked here 7 months. now company says i have to complete 45 days instead of 30. and that money will be not paid to me about 45 days. they will give me only one way ticket. Please tell me what kind of benefits i have to take from my company according to Low. because im not getting salary about 45 days which i spent.

    • Dear shazy,

      If you work 30 or 45 company has to pay payment for your work

      • Company is giving me only one side ticket and anniale leaves amount. Thats it… Which i worked 45 days they are saying its a labour low you have to work for paid 45 days… Beause i had a contract with the company for 2 years now im leaving after 7 months thats why.. And please tells me about the ban…

  30. Dear admin,
    I am limited contract and under probationary i worked for 1 month my boss terminated me without valid reason. Can i ask if do i have a chance to get a benefits and ticket? And posible to have a 1 year ban? Or can i have a chance to transfer in the other job? Pls i need the advice admin thank you

  31. I want to resign now and give them 30 days notice period. Can they force me to extend more than 30 days? I want only 30 days coz i have an better offer than what i am receiving right now. I have been working for them for 3 years now.

    • Dear cristina,

      Normal notice period in uae is 30 days and employer can not force.they may request

      • Dear admin. .Please guide me. ..I have signed 2 years agreement. … for Diesel Mechanic. .9 months finnished. ..Company didn’t given me any notice. ..but said you go home. ..how can i face this problem. Please help me

  32. Hi admin,

    I was working in a semi government company as a TL its been 9 months. Now they are planning to terminate me by this month end . It’s a free zone company located in DWC Dubai world central. They gave me warning letter stating it that you have one month deadline for performance if it’s not there we will fire you. I got my confirmation letter also, in that case will I be eligible for compensation benefits . Like 3 months pay or 1 month pay for which excludes my current month salary.

    • Waiting for the reply

    • Dear kumar

      For breaking limited contract, company should pay you 3 month salary + Gratuity + One way ticket + Notice period salary + en cash leaves not utilized.

      • Dear Admin,

        Thank you for your prompt reply, I have two questions. Is free zone DWC Dubai world central is a limited contract. And second question after giving warning letter and they mentioned in warning letter that if I won’t perform they will remove me and they asked me to sign on that. Then also I will revive these compensation benefits which you mentioned

  33. Dear Admin, please guide me.
    I have an unlimited contract, 6 months probation, but I want to resign during the probation period, I was told I have to give them 3months prior notice which doesn’t make any sense. Is that quite right as per the law? May I face a ban?

  34. Admin I received a letter for 1 month noticed termination due to cost cutting of the company and not with regards to work aspect which they said i have a good performance in my work but I am turning only 10 months in the company, do I have entitled to get any compensation or gratuities?

    Thanks

    • Dear eric,

      You are eligible to get all benefits as per company policy and gratuity as per UAE law

      • Admin, so with regards to your response for unlimited contract I am entitled to receive the 3 months salary compensation for this termination cost cutting of the company as per UAE law stated in Article 122 & Article 123?Is this correct? even for only 10 months service of worked has been made?

        Thank you Admin very much appreciated your advise and more power…

  35. Dear Admin,
    I have just completed my two years limited contract with a company in Dubai. They are ready to renew my contract but they wish to shift me from limited contract to unlimited contract. Also they want to delay by a month.
    I this case I wish to know wether my old contract will be terminated automatically And I will enter into a new contract rather than a Renewed contract. Will I be able to leave the company in say 6 months or so since I have already completed 2yrs with them.

    How will it affect my gratuity?

  36. I’m working with a LLC company, have signed a 2 years contract with them. However I am not happy with my job and am looking for a better job opportunity. In case I come across a job with better pay and prospects, can I resign without any issues, will I get a ban or have to pay my employer any dues?
    Kindly advise.

  37. Hello Admin ,
    Please guide and assist .
    I am in LLC company and finish 2 months , still in probation period which is 6 months period . Like to resign within probation period as working atmosphere is not good & healthy . My contract is for 2 years .
    Can I resign , is there any notice period in probation period . If resign then do i need to pay visa charges , air travel expenses to company or another expenses ….
    Pls guide .

    • Dear aman,

      It is not required to give notice period if resign in probationary period but regarding payment pls check below comments

  38. Dear admin,
    I have Enquiry about my graduity and remaining leave balance… I was terminated by labour law of article 120 and company told me they will give me only remaining leave balance, than I signed everything Coz before I said then I’m not going to sign termination paper than they threatened me they will call police than I scared and sign that paper too and now I sign settlement paper as well but my remaining balance they didn’t pay yet… What can I do now can y suggest me please? Thank you

    • Dear bimala

      As mentioned in settlement paper you will get payment…you please enquire

      • Hi, appreciate if you could assist me to clarify on my situation..

        I have been terimnated.. however, in my final settlement, the company is going to deduct my live out allowance as i have been giving a cheque for a year.. are they allowed to do so?

        • Dear zara,

          Companies not allowed to hold or cancel any lue out payment even if you resign or get termination but they may take recruitment cost if it mention in contract

          • Thanks for your reply. In this case, what would the best thing and way to say to the company that they are not allowed to deduct the allowence given in my final settlelemt? Appreciate your help.

  39. I was just looking at your UAE labour law Termination ,Compensation, Benefit, Notice period, Article 120, pay, Dismiss, Termination of Contract limited and Unlimited site and see that your website has the potential to get a lot of visitors.

  40. Hey, admin ! Please , help me.
    I work for airlines, already 4 months. Still on probation. I want to resign during probation. But iny contract it’s mentioned that I have to pay 25,000 aed for resignation before completing 3 years. This cost is for training. Is that legal and do I have to pay ? Thank you

    • Dear han
      If you are resigning then you have to give compansation such as training cost if it mention in contract.

      Its better to get termination if you realy would like to leave company

  41. Sir I received first warning latter in January 2016, my company mention there there is last warning after that company will terminate to me with out any prior notice. I already apologized against this latter & HR told to me warning latter we will remove from your file. But yesterday they terminated to me on the behalf of January warning latter. Sir my question is shall they have to give prior notice before terminating or not? Please reply me.

  42. I’m a limited contract employee and I have been working for 3 months and I’m still on probation period. Can I handed over my resignation letter. Will there be any ban and is it possible to lift the ban once I get a other employment. Pls kindly let me know

  43. I am working as a messenger 2009 to till but now they teminated 15-08-2016 with one month notice .I want know I am able to get compensation? Pls reply

  44. I’m terminated after 14 years of service and now are one month notice period in lieu (not working).
    1. Myself & family hv got rights to get medical insurance coverage during notice (in lieu) period ???
    2. Do I need to surrender my passport to company during notice period ???
    3. Can I delay cancellation of employment visa until I get full indeminity / entitlements ???

    Please advise.

  45. Hi my sister went to Abhu Dhabi as a Tourist to find a job but ended up signing a contract thru an Agency. After a month stay as a Personal driver, she decided to go home. I was informed that she has to pay her employer before she can go home. I understand the UEA law when you terminate a limited contract. She has to pay half a months salary for 3 months when she only stayed a month.
    My concern is the Agency. Do the Agency require my sister to pay too? If she can’t pay them what would happen to her? Please give us information on this.

    • Dear Kay ,

      law is not saying to pay as half month salary to be paid for 3 month but most of the company have policy to get recruitment cost and training cost if employee resign before finishing contract.it will mentioned in the contract

  46. Dear admin,

    I am working in a supermarket here in dubai. It is a labour company. I am only 5 months and they terminated me because they r telling that i have made an absent which was for 2 days but I have sick leave form from the doctor. I have 11 days of work after the salary when they gave my termination. I have no idea because i am new here and i came here through visit visa. Now the company is asking 4400 dirhams from me. And they said that they will call a police if i dont pay for that 4400.. Please give me an advice. 🙁 thanks you

    Regards,
    Maria

    • Dear Maria,

      if you have sick leave form then employer do not have right to teminate because of absent. let them call police

      if they are teminating no need to pay anything. you have to pay only if you resign

      • Sorry but this advise is incorrect. Employers do not have any right to claim visa costs from an employee. It is illegal.
        Visit the Labour Office and file a complaint. Do not sign the visa cancellation paper until this is complete as once you sign, you receive nothing.

  47. Dear Admin,

    Please help me. Im in a unlimited contract and on probationary period. I resigned from my company last month and I also gave a notice period for them. Is it legal that tey will hold my 2 months salary before the effectivity of notice period come to place?

    • Dear wahad,

      It is not legal to hold anyone salary.you are eligible to get salary for you work

      • Because in the internal contract that Ive signed..i have to pay 10k for the training and visa costs if I have not finished the contract. Thats why they hold my salary to compensate for the dues that I have to pay.

  48. Dear Admin,

    Please filled me with information. Here is my problem, I was terminated to my company due to cetain reason. I was called to the hr to see my final settlement and they inform that i am terminated so i will not get my graduity for 3 yrs. They told me that i write a letter that i am aware of this thing to happen which is i did. If i file a case is there any chance that i could win this case.

    • dear Mr. mark

      if the reason for temination not coming under article 120 then you can go to uae labour court and justify and win

  49. Please help. I have been working for 4 years in a company which has been defaulting the salary payment of employees regularly for almost 2 years.
    The problem is that we have more than 3 months salaries pending. At one point this year it went as high as 5 months pending pay. Now the situation is that there are no new projects and a lot of people are resigning by the day. The chances of payment of regular salaries, leave salaries, contractual travel re-imbursements(flight tickets)and end of service benefits are slim. The company has a paid-up Capital of 30 Million AED.

    Please advice on how to get the hard earned money from the employer.

  50. Hi,
    Kindly help me clarify….I just resigned from my company which is limited contract (2 years ) local hired. As per my contract it mentioned that if im resign i need to give 1 month notice period. I have submitted my resignation on 31st July and willing to serve 1 month notice period which my last day at work will be 31st August. I still not yet complete 1 year working with company ( I joined the company on 1 October 2015 ). Then i have taken my annual leave for 14 days and company still didnt pay for my 14 days annual leave that i took until now. After i submitted my resignation i have spoke with somebody from HR regarding the payment. HR told me that after i completed my 1 month notice period i still have to pay company for 15 days since company are base on UAE law. However i have agreed to pay 15 days balance which i couldnt work as per uae law but i want to know for the 30 days that i work during my notice will i get paid from a company also? Since many people told me that during 45 days of notice period i will be working for free and company will not pay me for the days that i have work under notince period since this 45 days notice period is required as per uae law and i also didnt complete 1 year working. Please let me know after i have completed 1 month notice i have to give cash to the company for 15 days balance and i will not receive any money from company for my 30 days that i have work under notice period ?

    • Dear phong

      Some companies taking recruitment cost if resign before completing contract and its depends on if it mentioned in offer letter.but have to pay your vacation salary and normal salary if you work on notice period

      • Dear admin,

        Thank you so much for your reply. It was direct recruitment with company and it was local hired since i was living here and company paid for my visa and medical check up. I dont mind of paying for the cost that they hired me and 15 days balance that i could not work out of 45 days according to uae labour law. As per your replied meaning i will get paid for the 30 days that i have work under my notice period and company can deduct the cost of hiring me plus 15 days that i suppose to pay them from the salary that i have work during 30 notice period correct?

  51. Good afternoon ,

    Would you please advise:

    I’m currently 1.5 years employed ( unlimitted contact ) , last month Employer sent a one-month notice that from September contract will be terminated due to company closing.
    May I get any termination compensation even if the Employer can show that it doesn’t make money to cover it Thanks

  52. i want to ask if unlimited visa theres no ticket going back home even im finish contract for two yrs? pls help me bec they said they will not provide me a airticket

  53. I want to leave my job…I m in hotel line…I already completed 12 months of my two years contract….what’s the legall way to resign my job….plsss answer…

  54. Hello,

    I handed in my notice last week and am currently serving my notice period, today my company tried to bring up a claim to dismiss me although I have already handed in my notice. Is this legal? What grounds do I have wherein I have already resigned and therefore can’t be dismissed?

  55. Sir, I am working as a nurse but the profession indicated in my residence visa is a Physiotherapist. What is the consequence of that? It’s the employer who arranged everything. I didn’t tell them or they informed me first that they will put PT instead of Nurse in my visa. Is it a legal offense? If it is, what do I need to do to correct it. Please advise. Thank you.

  56. If the Employee is dismissed from the company (Article 120), whether he is eligible for leave encashment?

  57. Hello,

    I am on my probation period i.e completed 5 months. Because of some incident, the company terminated me so total how much time I am going to face the ban according to labour law 2016?? I have a vehicle mechanic assistant visa.
    Please reply as soon as possible.

  58. Dear sir, I was terminated 30th of June after 1year & 2 months. Because of the new company restructuring the manning. They cut down my position. But I was in grade 3 (asst. Dept Head level ) now they gonna pay me only one month salary + grativity.
    Plz justify this since what I know they have to pay me 2-3 months salary..
    SD Prabath.

    • Dear prabhat

      As per labour law article 115 it is mentioned as “employer revokes it for reasons other than those specified in Article (120) he shall be required to compensate the worker for any damage the latter sustains, provided that the amount of compensation shall in no case exceed the aggregate wage due for a period of three months or the remaining period of the contract, whichever is shorter, unless otherwise stipulated in the contract.”

  59. Hi, I just want to know that if my company terminate me because of they don’t have enough contract for my post which I currently doing.. I have signed for 2 years contract n now I just finished 10 month.. In this case did they have to pay me for my remaining months for 14 months.. Plzzzz advice me n reply me… Thank u

  60. Hi, pls enlighten me. I filed a complaint yesterday june 29. I was called to office so we can discuss about the complaint. I talked with the company’s legal counsel and we did not arrive to a settlement. Right there and then, he presented me a notice of terminatio. He said they have the right to terminate me bexause am still under probation. This happenes after we took a break and he conversed with my employer over the phone. He said my employer decided to terminate me citing failure to meet their expectations which is obviously not the real reason. Is it legal that they terminate me while there is a pending case between me and my employer? And termination occured right then during our complaint discussion. I did not sign the paper for termination but they forced me to return my uniforms and company ID. Please tell me anything you can advise me regarding this matter. I immediately called labour to ff up my complaint and informed them that i was being terminated now. They just said to wait for their call. Please advise. Thank you.

    • Dear Gerald,

      employer have right to terminate an employee in probationary period if they are not satisfied in your experience. If they are teminating becz of other reason you can justify in labour court. Since you failed a case labour court will call you and emplyer and they will hear comments from both of you,then will take descition.

      Thanks

  61. We are terminated June 22 then they give us one way ticket to travel on july 7 is it fair enough for that short period of time because they dont give us time to find a better opportunity . In addition they don’t give notice and they let sign because of surprised termination we sign in out of mind that is already a settlement letter. Please help us…thank you.

  62. I AM ON LIMITED CONTACT AND FALLS UNDER SKILLED WORKER AND MY EMPLOYER IS NOT PUTTING 1 YEAR BAN. WILL I BE ABLE TO MOVE TO NEW EMPLOYER WITH BETTER POSITION AND HIGHER SALARY.

  63. i av cancelled my visa and am deducted 45 days of my basic salary meanwhile i gave a letter upon which they just told me to stop work in 4 days after the letter i need help

  64. i want to know about visa status changing rules and regulation according to UAE law,
    my visa expired in 2017 december before expiry date can i change my visa status ?

    • kindly let me know you are working or in visit visa

      • i have employment visa i am working as a security guard in abu dhabi more than eight years, now i want to change my visa status but my company told me that UAE visa status changing rules is change,
        when my visa expire then i can change my visa status before visa expire i cannot change my visa status please guide me regarding that issue.
        kind regard

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