UAE Termination Letter Guide
Complete guide to termination letters in the UAE. Learn about legal templates, notice periods, Article 44 grounds, final settlement, and avoiding arbitrary dismissal claims.
Quick Summary: Complete guide to termination letters in the UAE. Learn about legal templates, notice periods, Article 44 grounds, final settlement, and avoiding arbitrary dismissal claims.
| Aspect | Details |
|---|---|
| Legal Basis | Federal Decree-Law No. 33/2021, Articles 42-47 |
| Notice Period | 30-90 days (as per contract) |
| Final Settlement | Within 14 days of last working day |
| Probation Notice | 14 days minimum |
| Arbitrary Dismissal | Up to 3 months compensation |
Types of Termination
Termination with Notice
| Aspect | Details |
|---|---|
| Notice required | 30-90 days per contract |
| Reason needed | Yes, must be valid |
| Gratuity | Full entitlement |
| Payment in lieu | Allowed |
Termination Without Notice (Article 44)
| Aspect | Details |
|---|---|
| Notice required | None |
| Valid grounds | Specific under Article 44 |
| Gratuity | May be forfeited |
| Risk | High if grounds not proven |
Mutual Agreement
| Aspect | Details |
|---|---|
| Notice required | As agreed |
| Documentation | Written agreement |
| Gratuity | As agreed |
| Risk | Low if properly documented |
Contract Expiry (Non-Renewal)
| Aspect | Details |
|---|---|
| Notice required | 30 days (recommended) |
| Reason needed | No |
| Gratuity | Full entitlement |
| Risk | Low |
Grounds for Termination
With Notice (Valid Reasons)
| Reason | Example |
|---|---|
| Redundancy | Position eliminated |
| Restructuring | Organizational changes |
| Performance | After proper process |
| Business closure | Company closing |
| Cost reduction | Economic reasons |
Without Notice - Article 44 Grounds
| Ground | Article | Key Requirement |
|---|---|---|
| False identity/documents | 44(1) | Fraud proven |
| Probation failure | 44(2) | Within probation |
| Gross error causing loss | 44(3) | Significant damage |
| Safety violation | 44(4) | After written warning |
| Duty neglect | 44(5) | After written warning |
| Trade secrets disclosure | 44(6) | Proven disclosure |
| Intoxication at work | 44(7) | During working hours |
| Assault | 44(8) | Against employer/colleagues |
| Absence 20+ days | 44(9) | Intermittent, 1 year |
| Absence 7+ consecutive days | 44(10) | Without valid reason |
| Exploiting position | 44(11) | Illegal gain |
Notice Period Requirements
| Situation | Minimum Notice |
|---|---|
| During probation | 14 days |
| After probation | 30 days (minimum) |
| Contract specified | As per contract (max 90 days) |
Termination Letter Templates
Final Settlement Components
Must Include
| Component | Calculation |
|---|---|
| Outstanding salary | Days worked in final month |
| Unused annual leave | Days x daily rate |
| End of service gratuity | Per statutory calculation |
| Repatriation ticket | Or cash equivalent |
May Include
| Component | When Applicable |
|---|---|
| Notice period payment | If payment in lieu |
| Bonus (pro-rata) | If contractual |
| Commission | If earned |
| Pending expenses | If approved |
Arbitrary Dismissal
What Constitutes Arbitrary Dismissal
Consequences
How to Avoid
Termination During Probation
| Requirement | Details |
|---|---|
| Within probation period | 6 months maximum |
| Written notice | 14 days minimum |
| Legitimate reason | Should exist |
| Gratuity | No (under 1 year service) |
| Leave encashment | If applicable |
Post-Termination Process
| Action | Timeline |
|---|---|
| Pay final settlement | Within 14 days |
| Provide experience letter | On request |
| Cancel visa | Within 30 days |
| Return personal documents | On last day |
Frequently Asked Questions
Manage Terminations Compliantly
NeuralHR provides termination workflows, settlement calculators, document generation, and compliance checks to ensure legal terminations.
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NeuralHR Team
VerifiedUAE HR Compliance Experts
Our team of HR professionals and legal experts specializes in UAE labor law compliance, with extensive experience helping businesses navigate MOHRE regulations, Emiratisation requirements, and workforce management in the UAE and GCC region.
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