UAE Employment Termination Guidelines: 2024 Update for Employers

Last Updated on August 19, 2024 by Vadim

In the dynamic landscape of UAE labour laws, staying informed about employment termination regulations is crucial for both employers and employees. As of 2024, the UAE government has provided an updated set of circumstances under which an employer can lawfully terminate an employee’s contract without notice. This comprehensive guide will delve into these conditions, offering valuable insights for businesses operating in the UAE.

Key Takeaways:

• The UAE government has outlined specific scenarios for immediate employment termination
• Employers must follow proper procedures to ensure legal compliance
• Understanding these guidelines is essential for maintaining fair workplace practices

Grounds for Immediate Termination

1. False Identity or Forged Documents

An employer has the right to terminate an employee’s contract if:

• The worker assumes a false identity or nationality
• The employee submits forged certificates or documents

2. Significant Material Loss

Immediate termination is permissible if:

• The worker commits an error resulting in substantial material loss for the employer
• The employee intentionally damages company property and acknowledges this act

Important: The employer must notify the Ministry of Human Resources and Emiratisation within seven days of becoming aware of the incident.

3. Safety Violations

An employee can be dismissed without notice for:

• Violating the facility’s internal safety regulations
• Disregarding posted safety instructions after being informed of them

4. Failure to Perform Basic Duties

Termination is justified when:

• The worker consistently fails to perform essential job responsibilities
• A written investigation has been conducted
• The employee has received two written warnings about potential dismissal

5. Confidentiality Breaches

Grounds for immediate dismissal include:

• Disclosing company secrets related to industrial or intellectual property
• Causing losses or missed opportunities for the employer through information leaks
• Using confidential information for personal gain

6. Criminal Convictions

An employer can terminate a contract if the employee:

• Has been convicted by a competent court of a crime affecting honor, honesty, or public morals

7. Substance Abuse and Misconduct

Immediate termination is warranted if the worker is found:

• In an obvious state of intoxication during work hours
• Under the influence of drugs while on duty
• Committing acts that violate public morals in the workplace

8. Workplace Violence

An employee can be dismissed for:

• Assaulting the employer, managers, superiors, or colleagues
• Verbal or physical altercations punishable by UAE law

9. Excessive Absenteeism

Grounds for termination include:

• Absence without legitimate reason for more than 20 intermittent days in one year
• More than seven consecutive days of unauthorized absence

10. Abuse of Position

An employee’s contract can be terminated for:

• Exploiting their job position for illegal personal gains

11. Unauthorized Employment

Immediate dismissal is permissible if:

• The worker joins another establishment without adhering to established controls and procedures

Legal Considerations and Best Practices

While the UAE labor law provides these grounds for immediate termination, employers should exercise caution and follow proper procedures to avoid legal complications. Here are some best practices to consider:

1. Document Everything: Maintain detailed records of incidents, investigations, and warnings.
2. Conduct Thorough Investigations: Ensure all allegations are properly investigated before taking action.
3. Provide Written Notifications: All warnings and termination decisions should be communicated in writing.
4. Follow Due Process: Adhere to the company’s established disciplinary procedures.
5. Seek Legal Counsel: When in doubt, consult with a legal expert specializing in UAE labor law.
6. Stay Updated: Regularly review and update company policies to align with current UAE labor regulations.

The Importance of Fair Termination Practices

While these guidelines provide a framework for employment termination, it’s crucial to remember that fair and ethical treatment of employees should always be a priority. Proper termination practices not only protect your business legally but also contribute to a positive workplace culture and reputation.

By understanding and adhering to these updated UAE employment termination guidelines, employers can navigate the complexities of workforce management with confidence and compliance. Remember, a well-informed approach to employee relations is key to fostering a productive and harmonious work environment in the UAE’s ever-evolving business landscape.