Stay Ahead with 2025's Crucial Updates on UAE Employment Laws

 

You are fired

This document outlines the provisions related to termination without notice and suspension under the prevailing United Arab Emirates (UAE) Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations (“New Labour Law”), effective February 2, 2022, as amended by subsequent legislation, including the 2025 amendments. This law governs employment relations in all private sector establishments within the UAE, excluding those operating within the Dubai International Financial Centre and Abu Dhabi Global Market. This revision incorporates significant changes designed to align UAE employment legislation with recognised global standards and evolving market practices. #UAELabourLaw #EmploymentLaw #UAEJobs #HRUAE #LegalUAE

Termination Without Prior Notice (Article 44)

Article 44 of the New Labour Law, as amended, delineates the circumstances under which an employer may terminate an employee's employment summarily, without providing prior notice. The following constitute grounds for such termination:

1.    False Identity/Forgery: If the employee assumes a false identity or submits forged certificates or documents. #Fraud #Forgery

2.    Material Loss/Damage: If the employee commits an error resulting in material losses to the employer or deliberately causes damage to the employer's property, provided the employee admits to the error and the employer notifies the Ministry of Human Resources and Emiratisation (“MOHRE”) within seven (7) working days of becoming aware of the incident. #MOHRE #Damage

3.    Violation of Rules/Safety: If the employee violates the establishment's rules and regulations concerning work or safety measures, despite having knowledge of such rules. #WorkplaceSafety #Compliance

4.    Failure to Perform Duties: If the employee fails to fulfill their contractual duties and does not rectify such failure after receiving two (2) written warning letters and being subject to a written investigation. #EmploymentContract #WarningLetter

5.    Disclosure of Confidential Information: If the employee discloses confidential information related to industrial or intellectual property, resulting in material loss or loss of opportunity to the employer, or personal gain to the employee. #Confidentiality #IntellectualProperty

6.    Public Morals/Substance Abuse: If the employee commits an act against public morals at the workplace or is found to be under the influence of narcotics or in a state of intoxication. #WorkplaceEthics #SubstanceAbuse

7.    Assault: If the employee commits a verbal, physical, or other form of assault punishable by law against the employer, manager, supervisor, or co-worker. #WorkplaceViolence #Assault

8.    Unauthorized Absence: If the employee is absent from work without justification for more than twenty (20) non-consecutive days in a year, or more than seven (7) consecutive days. #Absence #Attendance

9.    Abuse of Position: If the employee abuses their position to obtain personal gains or profits. (2025 Amendment) #Ethics #AbuseOfPower

10.                  Unauthorized Employment: If the employee joins another establishment without adhering to the applicable legal procedures. (2025 Amendment) #LabourPermit #WorkPermit

Comparative Analysis and Key Changes

Procedural Requirements: The New Labour Law provides enhanced procedural clarity regarding summary dismissal. In cases of failure to perform duties, employers must conduct a written investigation and issue two (2) warning letters, a requirement absent in Federal Law No. 8 of 1980. #LegalUpdate #LabourReform Probationary Period: The New Labour Law addresses termination during the probationary period separately under Article 9, thus removing it from the grounds for immediate dismissal under Article 44. #ProbationPeriod End-of-Service Gratuity: A significant departure from Federal Law No. 8 of 1980 is that employees summarily dismissed under Article 44 remain entitled to their end-of-service gratuity. This overturns previous judicial interpretations that allowed forfeiture of gratuity in cases of summary dismissal for breach of contractual duties. #Gratuity #EndOfService Confidential Information: The New Labour Law specifies that the disclosure of confidential information must result in material loss, loss of opportunity, or personal gain to warrant summary dismissal. This provides greater clarity compared to the broader provisions of Federal Law No. 8 of 1980. #LegalClarity Notification Timeline: The notification period for material loss incidents to MOHRE has been extended from 48 hours to seven (7) working days. #Notification 2025 Additions: Articles 44 (9) and (10) add specific legal grounds for dismissal without notice. #Amendment

Suspension (Article 40)

While this document primarily addresses termination, it is pertinent to note that Article 40 of the New Labour Law governs the temporary suspension of employees. This article should be consulted for the specific conditions and procedures related to employee suspension. #EmployeeSuspension

Disclaimer:

This document provides a general overview and should not be construed as legal advice. Employers and employees are advised to seek professional legal counsel to ensure compliance with the New Labour Law and any subsequent amendments. #LegalAdvice #ComplianceUAE