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The employment shall be terminated in the following cases:
• Both employers and employees are granted the right to terminate the contract providing the sufficient notice in writing and circumstances that fall within those defined by ministry labour law.
• The specified term of contract expires unless the contract is extended implicitly or explicitly with relevance to the provisions thereto
• If the party under the employment contract with vague term wish to terminate thereof, provided that such party endures by the provision hereof related to the notification and the acceptable grounds for termination.

With the death of employer, employment contract shall not be terminated unless the subject of the contract is elated to employer thereof. However, the contract shall be terminated with the death of the employee or complete disability of employee such that it is proved by the medical certificate approved by competent health authorities.
Partial disability does not contribute to termination of the contract if an employee is able to work according to his health condition. Transfer of employees to similar work with same wages is possible in such cases on the basis of a request of an employee.

As amended by Federal Law no. 12 (29/10/1986)
Contract comprising of determined terms, and the employer revoke same for the reasons set forth in ARTICLE 120, employer will come under the obligation to compensate the worker for damage incurred thereto, provided that compensation amount does not exceed the wage of half month for a period of three months, or for the outstanding period of contract whichever is shorter unless stated in contract.

As amended by Federal law no.12 (29/10/1986)
If the contract is revoked by the worker for causes not set forth in ARTICLE 121, the worker shall be under obligation to compensate the employer for the loss incurred thereto by reason of nullification of the contract, provided that amount of compensation does not exceed the wage of half a month for a period of three months, or for the outstanding period of the contract, whichever is shorter unless mentioned in the contract.

a) Both employee and employer can exercise their right of terminating the contract on the basis of vague terms for justified grounds at any time following to the conclusion of a contract, after notifying the other party thereof in writing at least thirty days prior to termination thereof.

b) The notice period with regard to day workers is as follows:

• One week for the workers having worked for a period of six months at least or one year at most
• Two weeks for the workers having worked for a period of one year at least
• One month for the workers having worked for a period of five years at least

The workers shall be entitled to complete wage during this period on the basis of the last wage. He must perform his duty for the said period as required by the employer. The contract shall remain valid for the notice period aforementioned ARTICLE. It shall not be admissible to agree on the exemption of for notice provision.
However, the agreement of extension for such period shall be legal.ARTICLE 119
If the employer fails to report another party about the termination of contract o if such party reduces the period of notice, the notifying part shall be liable to compensate the other party known as compensation in lieu of notice, even though such failure or reduction of the period of notice has no impact on the party. Such compensation shall be equivalent to the amount of wage of the worker with regard to the whole notice period or reduced part thereof. The computation of compensation in lieu of notice shall be on the basis of last wage paid to the worker for monthly, weekly, hourly paid workers as per ARTICLE 57.

The worker shall be dismissed by the employer without prior notice in the following cases:
a) If a worker adopt false identity or nationality or defer
False certificates or documents;
b) A worker hired under probation and the termination occurs during or at the end of probation
c) If the material loss is incurred as a result of an error committed by an employee, provided that Labour department is informed about the incident within 48hours of the knowledge of the occurrence.
d) If the instructions related to safety at work and workplace are violated by the worker, provided that such instructions are in written form and are posted in a prominent location and he has been informed in case of illiteracy.
e) Failure of worker to perform his main duties in accordance with the terms of the contract and fails to rectify such failure despite written investigation on the matter and warning that he will be dismissed in case of relapse.
f) In case of disclosure of any secret of the workplace by worker
g) If he is condemned in a final manner by the competent court in a crime of honor, honesty or public ethics.
h) If found in condition of drunkenness, drugs or narcotics during working hours.
i) Worker assaulting the employer, co-worker or manager during the work.
j) If absent without a valid cause for more than non -consecutive twenty days in a year or for seven consecutive days.

The worker may quit without prior notice in case:
(According to amendments to federal law no.12 29/10/1986)
• The employer breach his obligations towards employee as set forth in the contract
• If an employer or legitimate authority assault the employee.

The dismissal of employee by employer shall be deemed to be arbitrary if the cause of termination is not related to work, in particular, if the dismissal of employment of worker is made by reason of filing the by the latter about a serious complaint before the higher authorities or valid claim against the employer.

Amended by federal law no.2 (29/10/1986)

a) If the worker is arbitrarily terminated, the court shall order the employer to compensate the worker. The court shall evaluate such compensation, taking into account the type of work and the extent of damage incurred to a worker as well duration and investigation of work conditions. The amount of compensation shall not be greater than the wage of three months.
b) The provisions provided in the preceding paragraph shall not breach the right to gratuity entitled and compensation in lieu of notice.

The employer may not dismiss the employee on the basis of medical unfitness before the exhaustion thereto. Any converse agreement to this shall be considered void.

A certificate of the end of service gratis mentioning the date of commencement and termination of employment, the total duration of service, type of service given, the last paid wage and supplements shall be given by the employer to the employee on his request.

In the case of occurrence of a change in the establishment or legal headquarters thereof, the validity of employment contracts at the time of change shall remain valid between the new employer and the workers of the establishment. The employment shall proceed and original and new employers shall be jointly liable for the period of six months for the execution of obligations. Such liability shall be solely borne by new employer upon the lapse of this period.

Workers are not permitted to compete with the employer or participate in any business competing with employers business on termination of the contract on the basis of business secrets acquired by the employee during interaction with the client of the employer while dealing related to work. For validation of such agreement, employee shall be twenty-one years old at least upon the conclusion and agreement shall be limited with regard to time, place and time of work.


If expatriate leaves work without a valid cause prior to the end of the contract with the definite term, he may not even get any other employment even with the permission of employer and such for a period of a year or from the date of termination of the contract. Knowing this, no employer shall recruit the worker.

If the expatriate informs the employer of his desire to terminate the contract with vague terms and leaves work prior to the expiry of prescribed notice period, he may not get any job even with the permission of employer for such period. No employer may recruit such employee, knowingly, to retain in his service during this period

Expatriates obtaining consent of ministry of labour and social affairs in accordance with the authorization of employer prior to employment in another job shall be exempt from the clauses 128 and 129.

Employees Repatriation

The employer is responsible for bearing the expenses of repatriation of employees to their homeland as agreed in the documents unless an employee is not responsible for termination of the contract. The further employee can take help from his employment lawyer, in this case, to assist him in a case of any issue.

Employment Ban

Under certain circumstances, a ban of employment, labor and work permit is compulsory.
Applications for permits of a person facing a ban will not be entertained. However, the ban may be removed depending on the circumstances. Additionally, some industries of labor and employment situations do not come under the employment ban, they may include UAE nationals, expatriates doing government jobs, employees of an oil company and also some skilled labour.