The process of terminating an employment contract has been changed recently according to the new federal labor law provisions in United Arab Emirates – Law No. 33-year 2021 regarding the regulation of employment relationships which came into effect on 2nd February 2022.

Employees must be notified of their termination during the probation period

Previously, during the probation period, employers had the right to terminate the employment contract with immediate effect with no required notifications.

Now, during the probation period, which is capped at 6 months, the employer still has the right to terminate the employment contract through 14 days' notice or with immediate effect but must compensate the employee for a 14-day salary on the total salary bases.

If the employee wishes to terminate the employment contract during probation period

In the event the employee wishes to terminate the contract during the probation period, there are 2 scenarios as follows:

In the first scenario if the employee wants to move to work with another employer; in such case, the employee must notify the employer with a 1 month's notice, and

the new employer must compensate the previous employer for all the expenses incurred when hiring the employee.

In the second scenario if the employee desires to terminate the contract and leave the country, the employee must serve a 14 days' notice to the employer.

Penalties for disregarding the rules of the notice terms

Not respecting the rules relating to...

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