Termination of Employment in the UAE: Employee and Employer Rights Explained

1 October 2025 by
Termination of Employment in the UAE: Employee and Employer Rights Explained
Concept Advocates | Business Consultants LLC

Employment relationships in the UAE are governed by the UAE Labour Law, which sets out clear rules for termination of employment contracts. Whether you are an employee facing dismissal or an employer considering termination, understanding the legal framework is critical to protecting your rights and avoiding disputes.

Legal Grounds for Termination in the UAE

Under UAE law, employment can be terminated in the following ways:

  • By mutual agreement between employer and employee.
  • Upon contract expiry for fixed-term contracts.
  • Termination with notice, as permitted by the contract and law.
  • Termination without notice, only in specific cases such as gross misconduct or breach of contract.

Unlawful termination can expose employers to compensation claims, while employees risk losing entitlements if they resign without proper notice.


Employee Rights After Termination

Employees in Dubai and across the UAE are entitled to certain rights after lawful termination, including:

  • End-of-service gratuity (if they have completed one year of service).
  • Unpaid salaries and leave encashment.
  • Compensation for arbitrary dismissal, if termination was unfair.
  • Experience certificate, as mandated by law.

Failure to provide these entitlements can lead to complaints filed with the Ministry of Human Resources and Emiratisation (MOHRE) or labor courts.

Employer Obligations During Termination

Employers must ensure that termination is carried out lawfully by:

  • Providing the required notice period (usually 30 days).
  • Documenting valid reasons for dismissal.
  • Settling all final dues promptly.
  • Avoiding discriminatory or retaliatory termination.

Improper handling of termination may lead to fines, legal claims, and reputational damage.

People also read: Do Dubai Courts Accept Electronic Evidence in Commercial Disputes?

How Concept Advocates and Adv. Sanafer Arakkal Help

Adv. Sanafer Arakkal, founder of Concept Advocates, is a trusted legal advisor in employment and labor law disputes in the UAE. He helps both employees and employers by:

  • Reviewing employment contracts and advising on lawful termination procedures.
  • Assisting employees in claiming end-of-service benefits and compensation for unfair dismissal.
  • Guiding employers to ensure compliance with UAE Labour Law when terminating staff.
  • Representing clients before MOHRE and UAE labor courts to resolve disputes efficiently.

His expertise ensures that rights are protected and disputes are resolved with minimal disruption.

Conclusion

The termination of employment in the UAE must comply with labor laws to ensure fairness and legal compliance. Employees should be aware of their rights, and employers must follow proper procedures to avoid legal risks. With Concept Advocates and Adv. Sanafer Arakkal, both employers and employees can navigate termination issues with confidence, protecting their rights and ensuring compliance with UAE law.


Termination of Employment in the UAE: Employee and Employer Rights Explained
Concept Advocates | Business Consultants LLC 1 October 2025
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