UAE labour law Termination ,Compensation, Benefit, Notice period, Article 120, pay, Dismiss, Termination of Contract limited and Unlimited United Arab
Emirates. What united Arab Emirates Labour law article mentioned about
Termination of contract and reasons?
Article 113 UAE labour
law Termination of Employment
An employment contract shall terminate in any of the
following cases:
1. By mutual agreement of the Parties, provided that the
worker's consent is given in writing;
2. Upon expiry of its term, unless it has been expressly or
implicitly extended according to the provisions of this Law;
3. For the convenience of either party to an indefinite term
contract, provided that the provisions of this Law concerning the notice and
the valid grounds of termination without arbitrariness are adhered to.
Article 114 UAE labour
law Termination on Death
An employment contract shall not terminate by reason of the
employer's death unless the subject of the contract is connected with his
person. A contract shall, however, be terminated by reason of the worker's
death or total disability to work, as established by a medical certificate
approved by the competent health authority in the State. If a worker is
capable, notwithstanding partial disability, of performing other work
consistent with his state of health, the employer shall assign him, at his request,
to that other work, if available, and pay him the wage normally paid to holders
of such jobs, without prejudice to any entitlements and compensation due to the
worker under this Law.
Article 115 UAE labour
law Termination Compensation for Worker
Where an employment contract is for a definite term and the
employer revokes it for reasons other than those specified in Article (120) he
shall be required to compensate the worker for any damage the latter sustains,
provided that the amount of compensation shall in no case exceed the aggregate
wage due for a period of three months or the remaining period of the contract,
whichever is shorter, unless otherwise stipulated in the contract.
Article 116 UAE labour
law Termination Compensation for Employer
Where a contract is revoked by the worker for reasons other
than those specified in Article (121), he shall be required to compensate the
employer for any damage the latter sustains as a result, provided that the
amount of compensation shall not exceed half a month wage for three months or
for the remaining period of the contract, whichever is shorter, unless otherwise
stipulated in the contract.
Article 117 uae labour law
termination notice period
1. Either the employer or the worker may terminate an
indefinite term contract for a valid reason at any time following its
conclusion, by giving the other party a notice in writing at least 30 days
prior to termination.
2. For the daily-paid workers, the notice period shall be as
follows:
• One week: if the worker has been employed for more than
six months but less than one year.
• Two weeks: if the worker has been employed for not less
than one year.
• One month: if the worker has been employed for not less
than five years.
Article 118 uae labour law
termination Pay
A contract shall subsist throughout the notice period
referred to in the preceding Article and shall terminate only on expiry of that
period. The worker shall be entitled in respect of the notice period to full
pay, calculated on the basis of his last wage, and shall continue to perform
his duties during that period if the employer so requests. The Parties may not
agree to waive the notice requirement or to reduce the notice period; however,
they may agree to extend the period.
Article 119 UAE labour
law compensation in lieu of notice
If either the employer or the worker reduces the period of,
or fails to serve a notice of termination on the other, the forbearing party
shall pay the other a “compensation in lieu of notice”, irrespective of whether
or not the other party has sustained damage as a result of such failure or
shorter notice. The said compensation shall be equal to the worker's wage in
respect of the entire or reduced period of notice. Compensation in lieu of
notice shall be calculated on the basis of the last wage received, in the case
of monthly, weekly, daily and hourly paid workers, and on the basis of the
average daily wage referred to in Article 57 of this Law in the case of those
paid on piecemeal.
Article 120 UAE labour
Law dismiss a worker without notice Reasons
An employer may dismiss a worker without notice if and only
if the worker:
1. Assumes a false identity or nationality or submits forged
certificates or documents.
2. Is engaged on probation and is dismissed during or at the
end of the probationary period;
3. commits a fault resulting in substantial material loss to
the employer, provided that the latter notifies the labour department of the
incident within 48 hours of his becoming aware of its occurrence;
4. disobeys instructions on the safety of work or workplace,
provided that such instructions are in writing and posted at a conspicuous
place and are communicated verbally to the worker, in case he is illiterate;
5. defaults on his basic duties under the contract and fails
to redress such default despite a written interrogation and a warning that he
will be dismissed if such default is repeated;
6. is finally convicted by a competent court of a crime
against honour, honesty or public morals
7. reveals any confidential information of his employer;
8. is found in a state of drunkenness or under the influence
of a narcotic drug during working hours;
9. assaults the employer, the manager in charge or any of
his workmates during working hours; or
10. absents himself from work without a valid reason for
more than 20 nonsuccessive days in one single year, or for more than seven
successive days.
Article 121 UAE labour
Law abandon his work without notice
A worker may abandon his work without notice in either of
the following cases:
1. If the employer fails to honour his obligations towards
the worker, as provided for in the contract or in this Law.
2. If he is assaulted by the employer or the employer's
legal representative.
Article 122 UAE labour
Law Termination of employee Legal right
A worker's service shall be deemed to be arbitrarily
terminated by his employer if the reason for termination is irrelevant to the
work. More particularly, a termination shall be regarded as arbitrary if it is
prompted by a formal complaint filed by the worker with the competent
authorities or a legal action instituted against the employer that proved to be
valid.
Article 123 UAE labour
Law Termination Benefits and uae labour law termination gratuity
1. Where a worker is arbitrarily dismissed, the competent
court may order the employer to pay him a compensation, to be assessed by the
court with due regard to the nature of the work, the extent of damage sustained
by the worker and his period of service, and after investigating the work
circumstances, provided that such compensation shall in no case exceed the
worker's wage for three months, calculated on the basis of his last wage.
2. The provisions of the preceding paragraph shall not
prejudice the worker's right to the gratuity he is entitled to and the
compensation in lieu of notice provided for in this law.
Article 124 UAE labour
Law Termination because of Medical Fitness
An employer may not terminate the service of a worker for
lack of medical fitness before the worker exhausts all the periods of leave
legally due to him. Any agreement to the contrary shall be null and void, even
if concluded before this Law comes into effect.
Article 125 Document to
be provided while Terminating and Experience Certificate
The Employer shall provide the worker, at the latter's
request upon expiry of his contract, with an end of service certificate, which
shall be free of charge and shall specify the service commencement and end
dates, total period of service, the nature of the work he was performing, and
his last wage and supplements, if any. The Employer shall return any
certificates, documents and tools belonging to the worker.
Article 126 UAE labour law change
occurs in the form or legal status of the firm
Where a change occurs in the form or legal status of the
firm, employment contracts that are valid at the time of such change shall
remain in force between the new employer and the firm workers, and their
service shall be deemed to be continuous. The original and the new employers
shall remain jointly liable for a period of six months for the discharge of any
obligations resulting from employment contracts during the period preceding the
change; after the lapse of that period the new employer shall solely bear such
liability.
Article 127 - uae labour law
termination of contract
Where the work assigned to a worker allows him to become
acquainted with the employer's clients or to have access to his business
secrets, the employer may require him to undertake not to compete with him or
participate in any enterprise competing with his own, after the termination of
his contract. For such an undertaking to be valid, the worker must be at least
21 Gregorian years of age at the time the agreement is concluded, and the
agreement must be confined, in terms of time, place and the nature of the
business, to the extent necessary to safeguard the employer's legitimate
interests.
Article 128 - uae labour law
termination limited contract
A non-National worker, who abandons his work without a valid
reason before the expiry of his definite term contract, may not, even with the
employer's consent, take up other employment until the lapse of one year from
the date on which he abandons his work. No other employer may knowingly recruit
such worker or keep him in his service before the lapse of such period.
Article 129 uae labour law
termination of unlimited contract
A non-National, who notifies the employer of his desire to
terminate his indefinite term contract but abandons his work before the expiry
of the statutory period of notice, may not, even with the employer's consent,
take up other employment until the lapse of one year from the date on which he
abandons his work. No other employer may knowingly recruit such worker or keep
him in his service before the lapse of such period.
Article 130 Labour law Provisions
in Article
The provisions of Articles 128 and 129 shall not apply to a
non-National worker who, before taking up other employment, obtains the
approval of the Minister of Labour and Social Affairs based on the consent of
the original employer.
Article 131 UAE Labour
Law What to do if Contract Expire
Upon expiry of contract, the employer shall bear the cost of
the worker’s repatriation to his point of hire or to any other point that was
mutually agreed upon. Where a worker joins another employer upon expiry of his
contract, the latter shall bear the cost of the worker's repatriation at the
end of his service. Without prejudice to the foregoing, if the employer fails
to return the worker or to pay his repatriation expenses, the competent
authorities shall do so at the employer's expense and may then recover any
expenditure incurred in this connection by attachment. Where the reason for the
termination of the contract is attributable to the worker, his repatriation
shall be at his own expense if he has the means to pay.
Article 131 (repeated 1)
1. For the purpose of the preceding Article, the worker’s
“repatriation expenses” refers to the value of his travel ticket as well as the
travel expenses of his family and the cost of shipping of his personal effects,
as stipulated in the Labour contract or the firm’s policies.
2. A worker who is provided with accommodation by his
employer shall vacate it within thirty days from the date of termination of his
service.
3. The worker shall not overstay in the accommodation beyond
the specified period for any reason, provided, however, that the employer pays
the worker the following:
• the expenses specified in paragraph 1 of this Article.
• severance pay and any other entitlements the employee is
bound to pay in accordance with the employment contract, the firm’s policies,
or the law.
4. if the worker contests the amount of the expenses and
entitlements referred to above, the Labour Department concerned shall urgently
determine these expenses and entitlements within a week from notification, and
shall promptly inform the worker accordingly.
5. In this case, the thirty-day grace period referred to in
paragraph 2 of this Article shall be calculated to run from the date on which
the employer deposits the value of the expenses and entitlements, as determined
by the Labour Departments concerned, with the Ministry of Labour’s treasury. If
the worker does not vacate the accommodation within the said thirty-day period,
the Labour Department, with the assistance of the authorities concerned in the
Emirate, shall take the necessary administrative measures for eviction.
6. The provisions of this Article shall not prejudice the
worker’s right to contest its application before the competent court.
Article 131 (repeated 2)
1. Employer shall submit to the competent labour department
a bank guarantee whose type, value, submission procedures, firms and companies
to whom it is applicable, and other relevant terms shall be specified in a
Council of Ministers’ resolution. This guarantee shall be used to ensure optimum
fulfillment of employer’s obligations provided for under Articles 131 and 131
(repeated), of this Law.
2. Deduction of any
amount from the bank guarantee referred to in paragraph 1 hereof shall be based
on a court judgment, with the exception of the following:
• Cost of a worker’s repatriation to his country of origin
or the point agreed upon with the employer.
• The amounts that
the employer admits before the competent labour court that they are due to the
worker. In these two cases, the Ministry reserves the right to deduct such
entitlements from the guarantee referred to in paragraph 1 hereof and pay to
the worker in fulfillment of his established dues.
Article 37 - uae labour law
termination during probation period
A worker may be employed on probation for a period not
exceeding six months, during which the employer without notice or severance pay
may terminate his services. A worker shall not be placed on probation more than
once with the same employer. Where a worker successfully completes the period
of probation and continues in employment, the said period shall be calculated
as part of his period of service.
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