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Employers in the UAE must furnish written notice of 30 to 90 days when ending an employment contract for a legitimate reason, with the worker receiving full salary throughout that period while duties continue, the official UAE government platform states. The employment relationship only ends upon expiry of the notice, and any party skipping the period owes compensation equal to the corresponding wages based on the last salary received. This framework, drawn from Federal Decree-Law No. 33 of 2021, applies across the private sector where the majority of the workforce consists of expatriates.
All final financial entitlements must be settled before cancellation of a work permit, with employers generally required to disburse final salary, gratuity where due and other amounts within 14 days of the contract’s end, Emirates 24|7 reported on Thursday. Workers who have completed at least one continuous year qualify for end-of-service gratuity calculated on basic salary at 21 days per year for the first five years and 30 days for each subsequent year, a formula confirmed across government and legal sources including analyses of the labour law. Delayed payments allow the employee to file a complaint with the Ministry of Human Resources and Emiratisation for resolution.
A terminated worker may take one unpaid day per week during the notice period to attend job interviews if the employer initiated the dismissal, provided the employee notifies the company at least three days in advance, according to Article 43(5) of the UAE Labour Law. Legal expert Awatif, quoted in the Emirates 24|7 guide, explained that this provision enables swift transition to new opportunities without unnecessary delay. The employee selects the specific day, ensuring operational continuity for the former employer.
An experience certificate detailing the worker’s tenure, position and duties must be issued upon any contract termination, even in cases of dismissal, as mandated by Article 13(11) of the federal legislation. This document serves as a standard requirement for subsequent employment applications within the country and helps maintain professional records. Employers cannot withhold it regardless of the circumstances surrounding the exit.
Additional payments cover encashment of unused annual leave at the basic daily rate along with any accrued but unpaid wages or contractual bonuses, multiple legal reviews of the 2021 decree as amended in 2024 confirm. The Insurance Against Loss of Employment scheme further supports eligible individuals with monthly benefits up to 60 percent of average basic salary for a capped period when job loss occurs through no fault of the worker, according to scheme guidelines referenced in termination analyses. Courts may award supplementary compensation of up to three months’ wages if a dismissal is ruled arbitrary or retaliatory, on top of standard entitlements.
The Ministry of Human Resources and Emiratisation oversees mediation for disputes arising from termination settlements, with official data indicating thousands of labour complaints processed annually through its digital platforms before potential court referral. Employees retain the right to pursue claims for any shortfall in gratuity, notice pay or leave balances even after receiving initial dues. These protections reflect ongoing refinements to the labour framework aimed at clarifying obligations for both parties in a market that employs millions across diverse sectors.
