Ending employment and labour disputes in the UAE
To end a UAE employment contract you need a legitimate reason and written notice of between 30 and 90 days, or pay in lieu. Dismissal without notice is allowed only for the serious misconduct listed in Article 44, after a written investigation. Final pay is due within 14 days. Disputes start at MoHRE, which decides claims under AED 50,000 itself.
When a UAE employment ends
- Notice within 30 to 90 days
- Final dues within 14 days
- MoHRE complaints and settlement
UAE amends its labour law on disputes and fines
What happened
The UAE Government issued a federal decree-law amending the UAE Labour Law. It raises the fines for several employer violations, adds a criminal offence for fake recruitment, and gives two years from the end of employment to bring a claim.
What it means for you
Employers face larger penalties for using work permits wrongly or failing to pay workers when a business closes. A former employee has up to two years to bring a claim, so keep termination records for at least that long.
Source: WAM (Emirates News Agency). We check this page every week. Last checked .
Federal Decree-Law No. 33 of 2021, the UAE Labour Law, sets out how a private sector employment contract ends on the mainland and in most free zones. Article 42 lists the ways a contract ends, from mutual written agreement and expiry of a fixed term to either party's wish, death, closure or bankruptcy. Article 43 sets the notice period. Article 44 lists the only cases where an employer may dismiss without notice, and Article 47 sets compensation for unlawful dismissal. When the parties disagree, the dispute goes first to the Ministry of Human Resources and Emiratisation (MoHRE), which tries to settle it and, for smaller claims, can decide it. The DIFC and ADGM run their own employment laws with different termination rules.
How much notice must a UAE employer give?
The notice period agreed in the contract, which must be at least 30 days and no more than 90 days, given in writing. The notice period must be the same for both parties unless a different one favours the worker.
The contract continues during notice and the worker is paid in full. The parties can agree to waive or shorten notice, but the worker keeps the right to pay for the full notice period. A party that does not give notice owes pay in lieu for the full notice period or the part not worked. When the employer gives notice, the worker may take one unpaid day a week to look for work, telling the employer at least 3 days ahead.
When does a UAE employment contract end?
Article 42 lists nine cases, including written agreement of both parties, expiry of a fixed term that is not renewed, the wish of either party with proper notice, the worker's death or permanent inability to work, and permanent closure or bankruptcy of the employer.
The other cases are the employer's death where the contract depends on them, a final prison sentence of at least 3 months against the worker, and the worker failing to meet the conditions to renew the work permit for reasons beyond the employer's control. Notice under Article 43 must be for a legitimate reason.
When can an employer dismiss without notice?
Only in the ten cases listed in Article 44, and only after a written investigation with the worker. The dismissal decision must be in writing, give reasons and be handed to the worker.
The cases include forged documents or impersonation, a mistake causing gross losses (the employer must tell MoHRE within 7 working days of learning of it), breach of written safety rules, repeated failure in basic duties after a written investigation and two warnings, disclosing work secrets, being drunk or under the influence at work, assault at work, and absence without a valid reason for more than 20 intermittent days in a year or more than 7 consecutive days.
What does unlawful dismissal cost a UAE employer?
Fair compensation set by the court, capped at 3 months' wage at the worker's last wage. Article 47 makes a dismissal unlawful when it is because the worker filed a serious complaint with MoHRE, or a valid lawsuit against the employer.
The court sets the amount by looking at the type of work, the damage to the worker and the length of service. The compensation is on top of the notice pay and end-of-service benefits the worker is owed. Separately, an employer may not end employment for ill health before the worker has used their accrued leave (Article 46).
What must be paid when employment ends?
Wages and all other entitlements within 14 days of the end of the contract (Article 53).
That includes notice pay where notice was not worked, end-of-service gratuity for an eligible expatriate worker, and any other dues under the contract or the employer's regulations.
How are labour disputes resolved in the UAE?
Through MoHRE first. MoHRE tries to settle the dispute amicably. It can make a final decision itself where the amount claimed is less than AED 50,000, or where the parties reach a settlement whatever the value. Otherwise it refers the case to court.
The government portal says MoHRE should attempt settlement within 14 days of the application, and a court case must be registered within 14 days of the referral. While a dispute stops the worker's wages, MoHRE may require the employer to keep paying them for up to two months. Workers' claims up to AED 100,000 are exempt from court fees. The 2024 amendment sends challenges to MoHRE decisions to the Court of First Instance and sets a two-year limit for claims from the end of employment. Some older government guidance still shows one year.
What happens if a worker stops coming to work?
The employer must report the absence to MoHRE. A foreign worker who leaves work without a legitimate reason before the contract ends may be refused a new work permit for one year (Article 50).
Absence without a valid reason for more than 20 intermittent days in a year, or more than 7 consecutive days, is also a ground for dismissal without notice under Article 44. The government portal notes a work abandonment report can bar a new permit for one year if it is proven true.
Key figures
| Detail | Value |
|---|---|
| Notice period (Article 43) | Written notice for a legitimate reason, as agreed in the contract, not less than 30 days and not more than 90 days. Same period for both parties unless it serves the worker's interest. Pay in lieu for notice not given. Worker may take one unpaid day a week to job-hunt when the employer gives notice. (source) |
| Termination cases (Article 42) | Nine cases: written agreement; expiry of the term unless extended or renewed; either party's wish with notice; employer's death where the contract depends on them; worker's death or full permanent inability; final prison sentence of at least 3 months; permanent closure; bankruptcy, insolvency or economic or exceptional reasons; worker failing permit renewal conditions for reasons beyond the employer's control. (source) |
| Dismissal without notice (Article 44) | Ten listed cases only, after a written investigation, with a written and reasoned decision handed to the worker. Includes absence without legitimate reason for more than 20 intermittent days in a year or more than 7 consecutive days. (source) |
| Unlawful dismissal compensation (Article 47) | Termination is unlawful if it is due to the worker filing a serious complaint to MoHRE or a proven lawsuit against the employer. Compensation set by the court, not more than 3 months' wage at the last wage, plus notice pay and end-of-service benefits. (source) |
| Final pay (Article 53) | Wages and all other entitlements paid within 14 days from the end of the contract. (source) |
| Unlawful absence (Article 50) | A foreign worker who leaves work for an illegitimate reason before the end of the contract is not granted another work permit for one year from the absence. The employer must notify MoHRE of the absence. (source) |
| MoHRE decision power and dispute steps | Under Ministerial Resolution No. 782 of 2023, MoHRE can make a final decision if the amount claimed is less than AED 50,000, or if the parties reach an amicable settlement regardless of value; above that without agreement it refers the case to court. Settlement attempted within 14 days; court case registered within 14 days of referral. Workers' claims up to AED 100,000 exempt from judicial fees (Article 55). (source) |
| Limitation period for claims (2024 amendment) | Claims filed more than two years after the employment relationship ends cannot proceed (August 2024 amendment to the Labour Law). Some older government guidance still states one year, so the two-year rule from the amendment is the current position. (source) |
| Employer fines (2024 amendment) | AED 100,000 to AED 1,000,000 for employing a worker without a proper permit, bringing a worker to the country and not providing a job, misusing work permits, or closing a business without settling workers' rights (August 2024 amendment). (source) |
Frequently asked questions
Can a UAE employer give less than 30 days' notice?
Not on its own. The contract notice period must be between 30 and 90 days. The parties can agree to waive or shorten it, but the worker keeps the right to pay for the full notice period.
Is there a cap on compensation for unfair dismissal in the UAE?
Yes. Where dismissal is unlawful under Article 47, because the worker made a serious complaint to MoHRE or a valid lawsuit against the employer, compensation cannot exceed 3 months' wage at the last wage. Notice pay and end-of-service benefits are paid on top.
How quickly must final pay be made?
Within 14 days from the end of the contract, covering wages and all other entitlements.
Does every dispute go to court?
No. It starts at MoHRE. MoHRE can decide claims under AED 50,000, and any claim where the parties settle. Larger claims without agreement are referred to court.
How long does a former employee have to bring a claim?
Two years from the end of employment, under the August 2024 amendment to the Labour Law. Some older government guidance still shows one year from the date of the violation.
Each of the six Gulf states writes its own labour law, its own end-of-service rules and its own quota for hiring citizens. When Teamed is your legal employer, we apply the right rules for the country each person works in and update your contracts, policies and payroll as the law changes, so you never have to read a statute to stay compliant.
