Termination Letter in the UAE
A UAE termination letter is a statutory instrument, not a courtesy. Article 43 of Federal Decree-Law No. 33 of 2021 requires written notification and performance of work during a notice period that the contract must fix at no less than thirty and no more than ninety days. Where the employer dismisses summarily under Article 44, the law requires a written investigation first and a dismissal decision that is itself written, justified and handed to the worker.
Governing law
Termination of onshore private-sector employment is governed by Articles 42 to 47 of Federal Decree-Law No. 33 of 2021 on the Regulation of Employment Relationships, which set out the permitted grounds, the notice regime, summary dismissal and arbitrary dismissal.
What a termination letter has to contain in the UAE
Either party may terminate for any legitimate reason provided the other party is notified in writing and work is performed during the notice period agreed in the contract, which must be not less than thirty days and not more than ninety days.
The contract stays valid throughout the notice period and ends on its expiry. The party that does not observe the notice pays the other a notice period allowance equal to the worker's wage for the full notice period or the remaining part of it, even where the absence of notice caused no damage.
Where the employer terminates, the worker is entitled to one working day of unpaid absence per week during the notice period to look for another job, and must tell the employer at least three days before the day taken.
Summary dismissal under Article 44 is available only after a written investigation with the worker, and the dismissal decision must be in writing, justified, and handed over to the worker by the employer or its representative.
The employer must pay the worker his wages and all other entitlements within fourteen days from the end date of the contract term.
In the DIFC the statutory minimum written notice is seven days for less than three months of continuous employment, thirty days for more than three months and less than five years, and ninety days for more than five years.
DIFC Employment Law, DIFC Law No. 2 of 2019 (Consolidated Version No. 5, July 2025), Art. 62(2)
What catches drafters out
The notice period must be the same for both parties unless the difference serves the interests of the worker, and it can be reduced or waived only by agreement that preserves the worker's rights for the agreed period.
Dismissal is unlawful under Article 47 where it results from the worker submitting a serious complaint to MOHRE or filing a proven lawsuit against the employer. Compensation ordered by the court may not exceed three months' wage calculated on the last wage, on top of gratuity and notice dues.
Terminating employment contracts and arbitrary dismissal (Art. 47), UAE Government Portal
Termination Letter in the UAE: common questions
- How much notice must a UAE termination letter give?
- Article 43(1) of Federal Decree-Law No. 33 of 2021 requires written notice and performance of work during the notice period agreed in the contract, which must be at least thirty days and no more than ninety days. Article 43(3) makes the defaulting party pay a notice period allowance equal to the wage for the full or remaining notice period, whether or not the other party suffered damage.
- Can an employer dismiss without notice in the UAE?
- Yes, but only on the grounds listed in Article 44 of Federal Decree-Law No. 33 of 2021, which include forged documents, disclosure of industrial or intellectual property secrets causing loss, and absence for more than twenty non-consecutive days or seven consecutive days in a year. The article requires a written investigation first, and the dismissal decision must be written, justified and handed to the worker.
- What is arbitrary dismissal worth in the UAE?
- Under Article 47 of Federal Decree-Law No. 33 of 2021, dismissal is unlawful where it follows a serious complaint to MOHRE or a lawsuit against the employer that is proven valid. The UAE Government Portal states that where arbitrary dismissal is proven the court assesses compensation by reference to the type of work, the damage and the length of employment, and that it must not exceed three months' wage on the last wage the employee was entitled to.
Sources
Every statement on this page is drawn from one of these. All were fetched on .
- Terminating employment contracts and arbitrary dismissal (Federal Decree-Law No. 33 of 2021, Arts. 42 to 47), UAE Government Portal
- Federal Decree-Law No. 33 of 2021, Art. 43(1)
- Federal Decree-Law No. 33 of 2021, Art. 43(2) and 43(3)
- Federal Decree-Law No. 33 of 2021, Art. 43(5)
- Federal Decree-Law No. 33 of 2021, Art. 44
- Federal Decree-Law No. 33 of 2021, Art. 53 [2021 text as published; the available official English consolidation does not reflect Federal Decree-Law 20/2023]
- DIFC Employment Law, DIFC Law No. 2 of 2019 (Consolidated Version No. 5, July 2025), Art. 62(2)
- Federal Decree-Law No. 33 of 2021, Art. 43(2)
- Terminating employment contracts and arbitrary dismissal (Art. 47), UAE Government Portal
The same document elsewhere
Other UAE documents
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