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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March 13, 2017 / 137 Comments / by / in , , , ,
  • Kay says:

    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.

    • admin says:

      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 will mentioned in the contract

  • Maria says:

    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


    • admin says:

      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

      • Tess says:

        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.

  • Wahad says:

    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?

    • admin says:

      Dear wahad,

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

      • Wahad says:

        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.

  • Mark says:

    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.

    • admin says:

      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

  • Gokul says:

    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.

  • N. K. Phong says:

    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 ?

    • admin says:

      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

      • N. K. Phong says:

        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?

  • Leila says:

    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

  • lot says:

    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

  • Shani raja says:

    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…

  • Want to know says:


    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?

  • Gerd says:

    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.

  • Fareed Ahamed says:

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

  • Aazam Hussain says:


    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.

  • SD Prabath says:

    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.

    • admin says:

      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.”

  • Shana shrestha says:

    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

  • Gerald says:

    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.

    • admin says:

      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.


  • 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.

  • SHIBINA says:


  • suleman says:

    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


    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 ?

    • admin says:

      kindly let me know you are working or in visit visa

      • MUHAMMAD IMRAN says:

        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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