When can a contract of employment be terminated?

An employment contract can be terminated on the following reasons:

1. Both parties agree;

2. Contract term has come to an end (No extension is present);

3. No Notice from both sides (employer and employee) for unlimited contract;

Fixed term Contract - if terminated before its expiry compensation of up to 3 months’ remuneration may be due.

Unlimited Contract - may be terminated, for a valid reason, on at least 30 days’ notice in writing (subject to any greater period provided for in the Contract).

Daily paid employees are entitled to less notice, subject to the terms of their Contract.

The Contract can be added to a party’s rights under the Labour Law but it cannot remove or reduce any e.g. employer cannot reduce or waive the notice period but it can place the employee on a leave with full pay if there is a desire to remove him from the company immediately. Irrespective of any agreement to reduce the amount of notice that requires to be worked out both parties, the employee will be entitled to a payment in respect of the full notice period.

Source: UAE Labour Law
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KSM