A recent legal clarification has provided essential guidance for employees in the United Arab Emirates facing job termination due to performance-related issues. According to the Federal Decree-Law No. 33 of 2021 Regarding the Regulation of Employment Relationships, the notice period remains consistent regardless of the termination reason, provided it constitutes a legitimate justification rather than misconduct.
The employment legislation mandates that either party initiating contract termination must provide written notice and adhere to a mutually agreed notice period spanning between 30 to 90 days. During this interval, the employee must continue rendering services as stipulated in their employment agreement.
Concerning end-of-service benefits, the law establishes that gratuity payments become payable exclusively after the completion of at least one year of uninterrupted service. The calculation methodology follows a tiered structure: twenty-one days’ basic wage for each year during the initial five years of service, transitioning to thirty days’ basic wage for each subsequent year beyond this threshold.
Crucially, workers terminated before reaching their one-year employment anniversary forfeit eligibility for gratuity benefits. Employers bear the legal obligation to settle all outstanding wages and contractual entitlements within fourteen days following contract termination, as prescribed by Article 53 of the Employment Law.
For unresolved payment disputes, employees retain the right to escalate matters to the Ministry of Human Resources and Emiratisation for formal intervention and resolution. This legal framework ensures standardized treatment across employment terminations while protecting workers’ financial entitlements upon contract conclusion.