ع
UAE Labour Law permits an employer to terminate an employment contract while the employee is on approved leave provided the decision is based on a legitimate reason and the worker receives written notification. The notice period does not begin until the day following the date the employee was scheduled to return from leave. Parties may agree to start the notice earlier if they choose. This framework appears in the federal decree-law that governs labour relations and was highlighted in a legal overview published Sunday.
The law requires either side seeking to end the contract to supply written notice and observe a period of between 30 and 90 days as stated in the employment agreement. The official UAE government portal explains that the contract remains in force throughout this time with the worker entitled to full wages based on the most recent salary. Employers must allow the employee one unpaid day off per week during the notice period to seek new work if the termination originates with the company. These rules apply uniformly whether the employee is at the workplace or on leave.
Termination without notice is restricted to specific serious grounds listed in the legislation such as submission of forged documents repeated failure to meet duties after warnings or breach of confidentiality that causes loss. The burden rests on the employer to prove such grounds existed according to multiple legal analyses of the 2021 decree. In ordinary cases a legitimate reason must still be shown and the full notice observed or compensation paid in lieu.
Certain forms of leave carry extra safeguards under the same legal framework. Maternity leave spanning 60 days with partial pay cannot be used as grounds for termination nor can an employer end a contract because of it. Sick leave up to 90 days per year also limits unilateral action until entitlements are exhausted. These protections aim to prevent retaliation during periods when workers are exercising statutory rights.
Employees who consider a termination arbitrary may file a complaint with the Ministry of Human Resources and Emiratisation. The law provides for court-awarded compensation of up to three months of wages in proven cases of dismissal without legitimate cause. Such claims must demonstrate the action lacked valid grounds or followed a protected complaint by the worker.
The 2021 labour law introduced clearer language on notice during leave to resolve earlier uncertainties in the previous statute. Legal summaries from government sources and advisory firms note that the update supports smoother dispute resolution while preserving employee entitlements to end-of-service benefits and unused leave pay upon final settlement. Employers are advised to document all steps to ensure compliance with the decree and its implementing regulations.
