A lawful termination analysis starts with the contract, written notice, the reason for termination and the employee’s accrued entitlements. Termination without notice is limited to specified circumstances.
- The agreed notice period must generally be at least 30 days and no more than 90 days.
- The contract remains effective during notice and the worker is entitled to full wage for that period.
- A full-time foreign worker who completes at least one continuous year is generally entitled to gratuity calculated on basic wage: 21 days for each of the first five years and 30 days for each later year, subject to the statutory cap.
- Retaliatory dismissal because of a serious complaint to MoHRE or a valid claim against the employer may be treated as unlawful termination.
1. Written notice and the 30–90 day range
Under the federal private-sector framework, either party may terminate for a legitimate reason by giving written notice and observing the notice period in the employment contract. That period must generally be no shorter than 30 days and no longer than 90 days.
The contract continues during notice. The worker remains entitled to full wage, and a party that does not serve all or part of the required notice may owe an allowance based on the last wage for the unserved period.
2. Termination without notice is exceptional
An employer may dismiss without notice only in the cases specified by law and after the required written investigation and reasoned written decision. Examples include serious misconduct, specified unauthorised absence and unlawful personal gain from the position.
The law also identifies circumstances in which a worker may leave without notice while retaining end-of-service rights, including specified employer breaches, workplace assault or harassment, and grave safety risks, subject to the required notifications and evidence.
3. How end-of-service gratuity is generally calculated
For a full-time foreign worker who completes at least one year of continuous service, the official guidance calculates gratuity using the last basic wage: 21 days for each year in the first five years and 30 days for each year thereafter. A proportionate amount can be due for part of a year after the first completed year.
Unpaid absence is excluded from the service period, and the total gratuity is capped at two years’ wage. Different work patterns and an employer’s participation in an approved alternative end-of-service scheme require a separate calculation.
4. Documents to preserve before a dispute
Many employment disputes turn on documents rather than broad statements. Both sides should preserve the signed contract, amendments, payroll records, warnings, investigation papers, leave records, notices and evidence of delivery.
- Check whether the notice complies with the contract and the law.
- Separate basic wage from allowances when reviewing gratuity.
- Record the effective termination date and outstanding leave.
- Do not rely on a verbal dismissal or resignation where written evidence is available.
- Review the correct forum and applicable employment regime before filing.
Frequently asked questions
Can an employer or employee agree to waive the notice period?
They may agree to reduce or waive working the notice period while preserving the worker’s rights for the agreed notice period. The exact financial effect should be recorded clearly.
Is gratuity calculated on basic salary or total salary?
The official MoHRE guidance states that the statutory gratuity for a full-time foreign worker is calculated on the last basic wage, subject to the applicable rules.
Is every termination by an employer arbitrary dismissal?
No. The official UAE Government guidance identifies retaliatory dismissal connected to a serious MoHRE complaint or a valid claim against the employer as unlawful. Every case depends on the reason, evidence and procedure.
Official sources
Sources open on official UAE government websites. The Arabic text of UAE legislation prevails where an official English translation states otherwise.