New UAE labour law explained: What happens after an unlimited work contract is terminated?

New UAE labour law explained: What happens after an unlimited work contract is terminated?

Experts explain the notice period, compensation, and legal rights after unfair dismissal

Published: Wed 8 Jun 2022, 12:06 PM

A top legal expert explained how employers could dismiss workers for a 'valid reason' before the new labour law was enforced in February 2022. However, the new law stipulates that a 'legitimate reason' needs to be provided to dismiss employees.

"Expiration of a fixed-term contract is a valid reason for dismissal," explained Judge Dr Ali Muhammad Al Hosani, first appeal judge and head of the technical office of the Labor Court, Dubai Courts. Moreover, employees on fixed-term contracts can now be rejected on notice as expected, with no additional compensation being payable.

Earlier, employees with fixed-term contracts could not be terminated before their expiration date outside of the summary dismissal without compensation being payable.

It is also unlawful to dismiss an employee for filing a complaint against the employer as per the new UAE Labour Law.

Law makes termination of work contracts flexible

Al Hosani said, "The new law gives more flexibility to both parties in terminating the relationship and does not require the completion of the contract term. The law allows them to terminate the relationship by giving two warnings by the law's regulations." He spoke at