The number of terminated employees in UAE is rising with each passing day. The reason behind the rise in this statistical graph is sometimes the negligence of an employee or arbitrary dismissal. Our associate labour lawyers in UAE are the legal attorneys which resolve the dispute or carry out termination legally.

Employee termination is governed by multiple factors which include the cause, contract type, and the other relevant compensation details for employees. Our associate labour lawyers in UAE manage the termination procedure so that it fulfills the terms and conditions of Federal and Civil Laws. 

Termination under probation period in UAE

For starting a job in UAE, employees have to undergo a probation period. It is to assess the employees’ performance against the standards. Evaluation is carried out during the probation period. If employees fail to succeed, then the employer has the right to terminate them anytime even during probation.

Termination under the probation period in UAE falls under Article 120 of Labour Law. Employers are legally allowed to terminate the employee before the expiry date of the probation period. Employees do not get any notice before termination during probation even if they are working on a limited contract.

According to the UAE Labour Law, companies are not allowed to request reimbursement of visa expenses. Employees cannot get any compensation if their termination within the probation period is set by the Federal Labour Law of UAE. Paid sick leaves and gratuity is not provided in such cases.  

Labour Law for Termination of Employment in UAE

UAE labour laws for termination are applied as per the type of contract, whether it is limited or unlimited. Employment contract termination is legally allowed under logical reasons. Contract types play a major role in specifying the legal liabilities on employee and employee in termination cases. 


  • Termination of Unlimited Employment Contract

According to the UAE employment law, limited contracts could only be terminated when their expiry date reaches. Early termination of this type of contract is possible when the situation complies with Article 120 of Employment Law. Employers are bound by the provisions of employment laws of UAE

If an employer terminates an employee under conditions that are not mentioned in law books, then this type of termination is considered arbitrary. In such cases, the employer is liable to provide 3 months’ salary as compensation. The employer has to clearly state the reason behind termination to avoid legal allegations

  • Termination of Limited Employment Contract

Termination of employees working under unlimited contracts could be made only with valid reasons. According to Article 177 of UAE Employment Law, termination of the unlimited employment contract is carried out as:


  • “Both the Employer and the Employee may terminate a Contract of Employment of an unlimited period for a valid reason at any time following its conclusion by giving the other party notice in less than 30 days before the termination.
  • For employees working daily, the period of notice is issued for


    1. One week, if the employee is serving the firm for more than six months but less than one year;
    2. Two weeks, if the employee has been employed for not less than one year;
    3. One month if the employee service period is not less than five years.”

Employees should fulfill the terms of employment and labor law for the termination of employment in UAE. If any of the termination clauses are found arbitrary, then employees have the right to hire our associate lawyers to file a lawsuit against the employer.

How many Warning letters before Termination in UAE?

Warning letters are the legal notices issued to employees informing them about the breach of security protocols and performance standards. It helps strengthen the employee-employer relationship as they can assess their faults and improve their performance before situations worsen. 

However, if an employee does not change his behavior after 3 warning letters, then the employer has the right to terminate them on legal grounds. Misconduct, poor performance, and continuous mistakes are not accepted. Employers hire new employees if the previous ones do not comply with the standards.

According to the Article 120 (e) of Federal Law No. 8 of 1980 governing Employee Relationships in UAE, the employer can dismiss a worker if they fail to maintain performance standards and keep on violating rules of conduct. Employee termination after 3 warning letters is not entitled to compensation.

Grace Period for Terminated Employees

Termination of employment in the UAE is followed by 30 days grace period. After the cancellation of the employment contract, employees’ work permits are canceled. Grace period prevents them from being an illegal immigrant in the UAE. Illegal residents are fined and ultimately deported to their home country.

Before the grace period ends, employees can obtain a new residence and look for another job. If they fail to secure a position in a new company, they have the option to leave the country before the grace period ends. Terminate employees can get help from our associate legal consultants about termination issues.