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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.

Terminating employment contracts and arbitrary dismissal (Federal Decree-Law No. 33 of 2021, Arts. 42 to 47), UAE Government Portal

What a termination letter has to contain in the UAE

What catches drafters out

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

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Termination Letter: the jurisdiction-neutral guideBack to Document Library