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Termination

Notice

Are employers required to give notice of termination?

To dismiss an employee (engaged for an indefinite period) other than for ‘cause’ (which is exhaustively defined in Federal Law 8/1980 (the Labour Law), as amended), employers must provide a minimum of 30 calendar days’ prior written notice (or longer, if required under the employment contract).

Redundancies

What are the rules that govern redundancy procedures?

There is no concept of redundancy under the Labour Law and therefore no prescribed process that employers must follow when dealing with a redundancy. Redundancies fall under the ordinary dismissal provisions provided for under the Labour Law. Consequently, when carrying out redundancies, employers must ensure that they comply with the Labour Law and pay the employee appropriately.

Are there particular rules for collective redundancies/mass layoffs?

No.

Protections

What protections do employees have on dismissal?

The termination of an indefinite contract for an invalid reason (ie, a reason unconnected to the employee’s performance) exposes the employer to the risk of an unfair dismissal compensation award of up to three months’ gross salary. Comparably, the premature termination of a fixed-term contract in circumstances not otherwise permitted under the Labour Law entitles the employee to claim early termination compensation of three months’ gross salary (or gross salary for the remaining period of the contract, if shorter).

Further, UAE nationals are afforded special dismissal protections.

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