1. Definition and Duration
When an employer decides to terminate an employee, the UAE Labour Law mandates a notice period. This period allows the employee to prepare for their departure and seek new employment opportunities. The standard notice period is:
- 30 days for employees who have been with the company for more than six months but less than five years.
- 90 days for employees who have served for five years or more.
2. Payment in Lieu of Notice
Employers can choose to pay the employee in lieu of the notice period. This means that instead of working through the notice period, the employee receives a payment equivalent to their salary for that duration.
3. Waiver of Notice Period
In some cases, an employee might agree to waive the notice period. This agreement should be documented in writing to avoid any future disputes.
Entitlement to an Extra Day Off
1. Overview
Employees in the UAE are entitled to one day off per week, typically Friday. However, upon termination, employees may be eligible for additional leave entitlements.
2. Annual Leave Compensation
If an employee has accumulated unused annual leave, the employer is obliged to compensate for this leave upon termination. The calculation is based on the employee’s daily wage.
3. Public Holidays
Employees are also entitled to compensation for any public holidays that fall within their notice period. This ensures that employees do not miss out on their entitled days off due to termination.
Additional Considerations
1. End-of-Service Gratuity
One of the significant benefits for employees in the UAE is the end-of-service gratuity. This gratuity is calculated based on the length of service and is a form of severance pay. The formula is:
- 21 days of basic salary for each year of the first five years.
- 30 days of basic salary for each subsequent year.
2. Unfair Dismissal
Employees who believe they have been unfairly dismissed can file a complaint with the Ministry of Human Resources and Emiratisation (MOHRE). The MOHRE will investigate the complaint and may order reinstatement or compensation if the dismissal is found to be unjustified.
3. Health Insurance
Upon termination, employees are entitled to maintain their health insurance coverage until the end of the notice period. Employers are required to provide this benefit as part of their obligations.
Conclusion
Navigating the complexities of employment termination in the UAE requires a clear understanding of your rights. By familiarizing yourself with the notice period, entitlement to an extra day off, and other key factors, you can ensure a smoother transition during this challenging period. Always consult the UAE Labour Law and seek legal advice if you have specific concerns regarding your termination.
