UAE MoHRE: Nine cases where your employer can terminate your contract

Abu Dhabi: The Ministry of Human Resources and Emiratisation (MoHRE) has identified nine specific cases in which an employment contract between a worker and an employer in the private sector may be legally terminated. This move aims to safeguard the rights of both parties in the employment relationship in a balanced manner that aligns with the future vision and aspirations of the labour market in the UAE.

The Ministry emphasised that the existing policies and procedures within the UAE labour market are designed to protect both workers and employers, enabling them to access and exercise their rights. These measures also contribute to ensuring stability and well-being for private sector employees.

In its latest update published on its official website, the Ministry outlined the circumstances under which an employment relationship may be terminated.

These include the following scenarios:

1.  The term of the contract expires and is not extended or renewed.

2.  Both the employer and employee mutually agree in writing to end it.

3.  Either party wishes to end it, provided that the terminating party observes the provisions of termination of the employment contract and the notice period agreed upon.

4.  In the event of the employer’s death if the subject of the contract is related to its entity

5.  In the event of the worker’s death or full permanent inability to work, based on a certificate issued by a medical entity.

6.  Where a worker faces a final court judgement of a freedom-restricting penalty (imprisonment) for a period of not less than three months.

7.  The establishment is closed permanently in accordance with the legislations in force in the UAE.

8.  The employer becomes bankrupt or insolvent, or faces any economic or exceptional reasons that prevent the continuation of the project

9.  The worker fails to fulfil the conditions for renewing the work permit for any reason beyond the control of the employer.

The Ministry added that additional grounds for termination include permanent closure of the establishment in accordance with applicable national legislation, the employer’s bankruptcy or insolvency, or other economic or exceptional circumstances that prevent the continuation of the business.

Such cases must comply with the regulations and procedures specified in the executive regulations and the applicable legislation in the country.

Another recognised cause for contract termination is the worker’s failure to meet the conditions required for renewing the work permit, for reasons beyond the employer’s control.

The Labour Relations Regulation Law permits employment contracts under six distinct categories of jobs:

 1.  Full-time Employment – working for a single employer for the full number of daily and weekly working hours.

2.  Part-time Employment – working for one or more employers for a specified number of hours or workdays.

3.  Temporary Employment – work that is required for a specific period or linked to a particular task, ending upon its completion.

4.  Flexible Employment – work where the hours or days may vary based on the volume of work and the economic or operational needs of the employer, allowing the worker to perform duties at variable times according to job requirements.

 5. Remote Work – work where the employee performs some or all work duties outside the employer’s premises, either part-time or full-time.

6. Job Sharing – whereby two or more employees share job responsibilities as previously agreed upon, with remuneration adjusted proportionately. Individuals under this arrangement are treated according to the regulations governing part-time work.

The Ministry aims to ensure the efficiency of the labour market, enhancing its appeal to top talent and skilled professionals while maintaining a stimulating and attractive work environment for employers. This contributes to achieving national development goals through the active participation of both employees and employers.

The Ministry said it remains committed to promoting flexibility and sustainability in the labour market by providing legal protection for the employment relationship and its developments, especially in light of potential exceptional circumstances that may impact it.