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The Ministry of Human Resources and Emiratisation governs the relationship between employers and workers, so all parties must abide by UAE Labour Law to protect their rights from the time the contract is signed until it is terminated.
In terms of period and intent of issuance, employment contracts differ. Every category has its own set of rules that define how contracts are issued and when they are terminated.
A limited contract may be unilaterally terminated by any party as long as he follows the legal implications of doing so. In the case of unlimited contracts, an employment relationship ends when both the employer and the employee mutually agree to end the contract, or when each party agrees to end the contract as long as the termination party follows the legal notice provisions and continues to fulfil his obligations. An employer or an employee may be able to terminate an employment contract with little to no warning under such circumstances. When an employer fires or forces an employee to leave without justification, this is known as arbitrary dismissal.
Types of Employees Termination are as follows-
A limited contract cannot last more than two years and must have a notice period of at least one month and up to three months.
Any party may unilaterally terminate the original or renewed contract, as long as he follows the legal implications of doing so, which include:
A limited contract may be terminated for any of the reasons mentioned below:
An employment relationship is terminated in one of the following circumstances in the case of unlimited contracts:
In accordance with UAE Labour Law, an employment contract, whether restricted or indefinite, may be terminated without warning by any party.
The employer can terminate the contract without giving notice
If the following conditions are met, an employer can terminate an employment contract without notice and deprive the employee of his or her end-of-service gratuity:
Employee's employment is terminated without notice.
An employee has the right to terminate an employment contract without giving notice if the following conditions are met:
When an employer fires an employee or forces him to resign for no cause, this is known as arbitrary or unjust dismissal.
Arbitrary termination of an employee occurs when an employee is fired for reasons unrelated to job performance, or when an employee files a legitimate complaint against an employer, causing the latter to discharge him maliciously, according to Article 122 of the UAE Labour Law.
Article 120 of the UAE Labour Code specifies the circumstances under which a termination without warning is permissible.
If an employee claims he was fired unfairly, he may file a complaint with the Ministry of Human Resources and Emiratization. The ministry will make every effort to reach an amicable solution to the problem. If no agreement can be found, the matter will be appealed to the appropriate court.
If unfair dismissal is proved, the court will order the employer to compensate the employee, according to Article 123 of the UAE Labour Law. The value of compensation will be determined by the court based on the nature of job, the degree of the employee's damages, and the length of employment.
In both cases, the amount of compensation does not exceed the employee's salary for a three-month period, measured on the basis of the worker's most recent wage.
In addition to benefits, the employee may sue his employer for his gratuity, notice time dues, and any other unpaid dues.
When an employment contract is terminated and a work visa is cancelled, the terminated employee is given a 30-day grace period from the date of cancellation to either obtain a new residency permit or leave the country. Illegal residents can face fines or deportation.
Job transfer formalities are controlled by Cabinet Resolution No. (25) of 2010, and the Ministry of Human Resources and Emiratization grants a new work permit to the employee after the employment contract is completed, without the permission of the employer or the six-month ban.
In the event of unfair dismissal or if the employee is graded in the first, second, or third ability levels upon starting his new job, the employee can obtain a new work permit without having to fulfil the two-year condition.
While most employers are not required to have one, termination letters are necessary because they will help the organization retain a good image, demonstrate integrity, and provide a record of events for legal reasons.
Giving workers a termination letter is a more humane and respectful way of dismissing them. Giving workers notice gives them time to deal with external circumstances that will change as a result of their unemployment. It also ensures that staff are fully informed of the circumstances surrounding their dismissal. Maintaining respect for an employee and assisting them in their transition is critical. The employee and the employer would have a stronger relationship as a result of this.
Employers can terminate jobs at any time for any reason as long as the termination is not unfair and there is no contract or union agreement in place. A document of termination would confirm the dismissal, include a receipt of company property, and clearly outline the effective date of termination in the event of a legal conflict.
Employees Termination Letter Sample
Dear [Employee Name]:
As per our meeting with [Identify Parties] earlier today, this termination letter is to formally notify you that your employment with [Company] will terminate effective as of [Date] (“Termination Effective Date”), due to
-your failure to meet the terms of your employment agreement. or
-your failure to perform at the level required for your job classification. or
-your failure to abide by [Company] policies and/or procedures. or
-a change in business conditions such that your position is no longer required at [Company].
Specifically, [Identify in More Specific Terms the Reason for Termination].
A severance package has been provided under separate cover, and the amounts specified therein are inclusive of any payments, statutory or otherwise, that may be owed to you in accordance with [Company] policy or under applicable law, including accrued vacation. This severance package is available for your review and acceptance at any time prior to [Time] on [Date]. The severance package will be void if not accepted prior to this time.
Please note that you are still under certain obligations as imposed by your employment agreement with [Company]. Specifically, you must continue to ensure confidentiality with respect to information made available to you by [Company] or through your employment by [Company], and you must ensure proper transfer of intellectual property contributed while with [Company].
Please find [Company]’s Out-Processing Checklist attached. This checklist will be completed just prior to or on your last day of work. Please review the checklist and be prepared to return items in your possession to your supervisor, HR representative or other staff member who will be conducting your out-processing. This checklist is being provided as a guide to assist as you prepare for your last day of work.
Also attached is information regarding your current or continuous benefits coverage. Please review this information in detail, and reach out to your HR representative with any questions.
If you have any questions concerning the information in this employment termination letter, please contact the undersigned directly via email or phone at [Email Address] or [Phone Number].
Disclaimer: The information contained in the sample document is general information and should not be considered as bank or authorized advice to be applied to any specific factual situation. All information and documents are as per dhanguard experience.