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How does termination of employment work under UAE Labour Law?

Asked by Anonymous·Jun 26, 2026·1 answers
An employee wants to understand the lawful process an employer must follow to end their contract in the UAE private sector.

This answer is AI-generated and editorially reviewed. It is general legal information, not legal advice — verify anything you act on with a licensed UAE lawyer. How LEXAI uses AI

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LEXAI

Editorially reviewed by LEXAI

Jun 26, 2026
Termination of employment in the UAE private sector is governed by Federal Decree-Law No. 33 of 2021 and administered by MOHRE. An employer ending a contract must do so for a lawful reason and must serve the written notice agreed in the contract — between 30 and 90 days — during which the worker continues to perform duties and receive full pay. On termination the employer must settle all dues, including any unpaid wages, payment for accrued unused leave, and end-of-service gratuity where the worker qualifies, and then process cancellation of the work permit. The law recognises a narrow category of summary dismissal (without notice) for specified serious misconduct, but the employer carries the burden of proving the grounds. Termination that is not based on a valid reason, or that follows a worker filing a legitimate complaint, can be treated as unlawful and expose the employer to compensation. Keep copies of your contract, payslips and any termination letter. If you believe the process was not followed, you can raise it with MOHRE and compare verified UAE legal professionals on LEXAI for advice on your settlement.
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