The Lawful Manners In Which A Job Contract Can Be Dissolved In The UAE

October 24, 2022

Termination of a contract is not unusual in professional arenas, however, it should always remain within the realm of labour laws. In order to ensure due process is followed, the UAE legislators have come out with some rules in the area of termination of the employment contract. These rules are applicable for both employer and employees, whoever wishes to discontinue the contract.

According to the UAE Digital Government portal, in accordance with the UAE’s new labour law, either party can dissolve the contract provided there is a notice period involved and all the requisite rules are followed.

The aforementioned are the scenarios in which a job contract could be broken in line with Article 42 of the Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations in the Private Sector:

In case the specified tenure in the contract expires and the same is not extended
In case both parties, employer and employee, agree in writing to terminate the contract
If one of the parties decides to annul the contract, however, the party in question has to follow all the provisions of termination of the employment contract and the notice period involved in the same

If the employer dies and the subject of the contract pertains to its entity
If the worker dies or becomes incapable to carry out duties, in the second case, a certificate issued by a medical entity becomes essential
If a worker is confronted with a final court judgement of a penalty that restricts his or her freedom for a period of not less than three months
If the organisation shuts down for good and mandatory legislation is followed under the circumstances
If the employer turns bankrupt or insolvent or confronts any economic or exceptional causes that prohibit the continuation of the project.