Termination of Employment in the UAE: Notice, Probation, Final Pay

Termination of Employment in the UAE: Notice, Final Pay and Deadlines

Under Federal Decree-Law No. 33 of 2021, either side can end a UAE private-sector employment contract for a legitimate reason by giving written notice of 30 to 90 days, during which the employee is paid in full. Termination without notice is possible only on the grounds the law lists, after a written investigation. Whatever the route, the final settlement is due within 14 days. This guide walks through the process from both sides, with a worked settlement and the deadlines for a MOHRE complaint. For which authority handles which employer, see employment disputes in the UAE.

It covers mainland and most free zone employers. The DIFC and ADGM have their own employment laws, notice periods and courts; in the DIFC, for example, statutory minimum notice runs from 7 to 90 days depending on service.

Every contract is now fixed-term

Article 8 caps the employment contract at 3 years, renewable by agreement; renewals add up to one continuous period of service. If both sides simply carry on after expiry, the contract is treated as renewed on the same terms. Unlimited contracts signed under the old law have their own minimum notice (Article 65(6)): 30 days under 5 years' service, 60 days over 5 years, 90 days over 10 years.

Notice: the default route

Article 43 sets the rules:

the notice period is whatever the contract says, but not less than 30 and not more than 90 days, and the same for both parties unless the difference favours the employee;
the contract stays in force during notice; the employee is paid in full and works if the employer asks;
the parties can shorten or waive notice, preserving the employee's rights;
the side that fails to give notice pays notice pay for the full period or the remainder, even if the other side suffered no loss;
where the employer terminates, the employee may take one unpaid day per week of notice to look for work, with 3 days' warning.

Notice pay is calculated on the last wage — a term the law defines to include cash allowances. Gratuity, by contrast, uses basic salary only. That difference often surprises both HR and employees.

Probation exits

Probation may last up to 6 months, once per employer (Article 9).

Employer ending probation: at least 14 days' written notice.
Employee moving to another UAE employer: at least one month's written notice; the new employer reimburses the old one for recruitment costs unless agreed otherwise.
Employee leaving the UAE: at least 14 days' notice. If they return and take a new work permit within 3 months, the new employer owes the same reimbursement.
Breaching these rules means paying notice pay for the unserved period. A foreign employee who leaves the country in breach of them is barred from a new work permit for one year (Article 9(6)).

Dismissal without notice

Article 44 is a closed list. The employer must first hold a written investigation, then hand over a written, reasoned decision. The grounds:

False identity or forged documents.
A mistake causing gross material loss, or deliberate damage admitted by the employee — reported to the Ministry within 7 working days.
Breach of written, posted and communicated safety instructions.
Continued failure to perform core duties after a written investigation and two warnings of dismissal.
Disclosure of a trade secret related to industrial or intellectual property causing loss, lost opportunity or personal gain.
Intoxication at work or acts against public morals in the workplace.
Assault on the employer, a manager or colleagues at work.
Unjustified absence of more than 20 intermittent days in a year or more than 7 consecutive days.
Unlawful use of position for personal gain.
Joining another establishment without following the prescribed procedure.

Employees have a mirror right under Article 45 to leave without notice and keep their end-of-service rights: where the employer breaches its obligations and fails to fix them after MOHRE is notified (the employee tells MOHRE 14 working days before leaving); after assault or harassment (reported within 5 working days); where there is grave danger at work; or where the employee is moved to fundamentally different work without written consent.

Article 46 adds that an employee cannot be dismissed for ill health before using their accrued leave.

Arbitrary dismissal

Article 47 makes dismissal unlawful where it is because the employee filed a serious complaint with the Ministry or a well-founded lawsuit against the employer. The court then awards compensation based on the type of work, the harm and length of service, capped at three months' wage. It comes on top of notice pay and gratuity, not instead of them.

Open-plan office with staff at work — Photo: Arlington Research / Unsplash

A worked final settlement

Basic salary AED 12,000; allowances AED 6,000; total wage AED 18,000. Four years' service; 10 days of untaken leave. The employer terminates under a 30-day notice clause but wants the employee out the same day.

Notice pay (on wage): AED 18,000
Gratuity (on basic): 12,000 / 30 = AED 400 per day; 400 × 21 × 4 = AED 33,600
Untaken leave (on basic): 10 × 400 = AED 4,000
Total, on top of salary for days worked: AED 55,600

It is due within 14 days of the end of the contract (Article 53). Unpaid leave, part-years and deductions are covered in our gratuity calculation guide.

Visa and work permit

The employer, as sponsor, cancels the work permit and residence visa. The employee then has a grace period to find a new job or leave; its length we confirm on the date with ICP and MOHRE. A move to a new employer is allowed where the contract expired, ended under Article 42 or 45, or was terminated by the employer through no fault of the employee. How the next employer sponsors you is covered in work visa for an employee.

Complaining to MOHRE: deadlines and thresholds

File with MOHRE through its app, website or service centres; the toll-free labour advice line is 80084.
MOHRE attempts settlement; if that fails within 14 days, the dispute goes to court.
Under Ministerial Resolution No. 782 of 2023, MOHRE issues a final decision where the claim is under AED 50,000 or the parties settle. Larger unsettled claims go to court.
Employee claims up to AED 100,000 are exempt from court fees at every stage (Article 55).
Time limit: under the law as amended by Federal Decree-Law No. 9 of 2024, employment claims are not heard after two years from the end of the employment relationship. We check the exact wording against your claim before filing.

Employer checklist

A ground under Articles 42–44 and dated written notice.
For summary dismissal: the written investigation record and a reasoned decision.
Salary, notice, leave and gratuity paid within 14 days.
Visa and permit cancelled.
If the contract has a non-compete clause, check before dismissal whether and how it will apply: its limits are set by Article 10 of the Labour Law and its implementing regulation.

Frequently asked questions

Can I be dismissed without a reason if I get notice pay?

The law speaks of termination for a legitimate reason with notice. It expressly names dismissal for a justified complaint or lawsuit as unlawful; other reasons are assessed on the facts.

What is the maximum compensation for arbitrary dismissal?

Three months' wage under Article 47, plus notice pay and gratuity.

Can my employer make me leave during my notice period?

Yes, by agreement or by paying notice in lieu; your right to the full notice pay remains.

How long do I have to file a claim?

Two years from the end of employment under the current text of the law, as amended in 2024.

Sources

Federal Decree-Law No. 33 of 2021 (Articles 8, 9, 42–47, 53, 55, 65), text on the official u.ae portal: https://assets.u.ae/api/public/content/eb65a60bbff949fa912eddd566613014?v=7174ed78 — checked 24.09.2026
u.ae — Terminating employment contracts and arbitrary dismissal: https://u.ae/en/information-and-services/jobs/Sector-of-employment/employment-in-the-private-sector/terminating-employment-contracts — checked 24.09.2026
u.ae — Resolving labour disputes (14 days, Ministerial Resolution No. 782 of 2023, AED 50,000, 80084): https://u.ae/en/information-and-services/jobs/Sector-of-employment/employment-in-the-private-sector/labour-dispute — checked 24.09.2026
DIFC Courts — FAQs on the DIFC Employment Law (DIFC notice periods): https://www.difccourts.ae/application/files/7117/1636/5975/DIFCC_PBP_FAQs_DIFC_Employment_Law.pdf — checked 24.09.2026

This is a general framework, not legal advice. The outcome depends on your contract, documents and your employer's regime, and UAE law changes. We review each situation individually.

Termination of Employment in the UAE: Notice, Probation, Final Pay, MOHRE