>Notice period
>Severance Pay
Notice period if terminated or dismissed:
As per the UAE Labour Law the minimum notice period is 30 days. However it depends on company policy. An employer and employee can mutually agree to have longer notice period, but they cannot shorten notice to less than the statutory minimum period.
If either party decided to terminate the contract without completing the contract period , then that party must pay the compensation in lieu of notice based on the employee’s current pay in proportion to the number of days in default.
As per the Article 120 of the UAE Labour Law employer has the right to terminate the employee without notice if the employee commits an act of gross misconduct are limited to the following:
If the employee assumes a personality or a nationality other than his own, or has submitted fake documents or certificates.
If the employee was appointed under probation and the termination happened during that period or at its end.
If the employee commits a mistake causing the employer a substantial financial loss, provided the employer informs the Ministry of the incident within 48 hours.
If the employee violates instructions relating to safety in the place of work, provided those instructions were written and displayed in a permanent place, and the employee has been informed of these instructions orally if he is illiterate.
If the employee fails to carry out his basic duties as stated in the contract and continues to do so in spite of a written interrogation and a warning that his service will be terminated if he repeats his misconduct.
If he discloses a secret of the establishment for whom he is working.If he is conclusively convicted by the concerned court of a crime involving honour, honesty and public morals.
If he is found drunk or intoxicated by drugs during working hours.
If he commits a physical assault on the employer or manager or one of his colleagues during work.
If he becomes absent without a legitimate reason for more than 20 intermittent days or more than seven continuous days within one year.
However, both the parties (employer and employee) can agree :
to have a longer or shorter notice period,to waive notice entirelyto accept a payment in lieu of notice
An employer can dismiss an employee without notice where the employee’s conduct constitutes misbehavior.
Severance payments:
As per the Law any employee in the organization who have completed at least one year’s continues service with an employer is entitled to an end of service gratuity payment on termination of their employment contract.
The same rule is applicable under DIFC Employment Law and there is no reduction in end of service gratuitywhen an employee resigns.
Procedural requirements for dismissal
An employer must cancel or transfer sponsorship of an employee’s residence visa and labour card (or ID card if the employee is working in the in the free zones) within 30 days following termination of employment. Employees must sign a final settlement form confirming that they have received all of their legal entitlements before the authorities will cancel their residence visa and labour card (or ID card, if applicable).
The dismissal of UAE National employees is prohibited without the Minister of Labour’s approval. There are no other express protections from dismissal as such. Other than UAE nationals, there are no specific categories of protected employees.
Source : Labour law.
However we recommend you to take your termination letter to MOL before signing it as this will help with lifting the ban other than when terminated under article 120.
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