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We would like to inform you that referring to the UAE Labor Law, the legal procedures must be observed when the work relationship is terminated either by the employer or the worker. Therefore, if the work is terminated without notice or warning, the matter shall be deemed an arbitrary dismissal which imposes on the employer paying compensation to the worker, especially since the law specified the cases in which the employer is able to terminate the worker without notice in the text of Article (120). You can check the following articles:
Article (117):
1. Either the employer or the worker may terminate an indefinite term contract for a valid reason at any time following its conclusion, by giving the other party a notice in writing at least 30 days prior to termination.
2. For the daily-paid workers, the notice period shall be as follows:
• One week: if the worker has been employed for more than six months but less than one year.
• Two weeks: if the worker has been employed for not less than one year.
One month: if the worker has been employed for not less than five years.
Article (118):
A contract shall subsist throughout the notice period referred to in the preceding Article and shall terminate only on expiry of that period. The worker shall be entitled in respect of the notice period to full pay, calculated on the basis of his last wage, and shall continue to perform his duties during that period if the employer so requests. The Parties may not agree to waive the notice requirement or to reduce the notice period; however, they may agree to extend the period.
Article (119):
If either the employer or the worker reduces the period of, or fails to serve a notice of termination on the other, the forbearing party shall pay the other a “compensation in lieu of notice”, irrespective of whether or not the other party has sustained damage as a result of such failure or shorter notice. The said compensation shall be equal to the worker's wage in respect of the entire or reduced period of notice. Compensation in lieu of notice shall be calculated on the basis of the last wage received, in the case of monthly, weekly, daily and hourly paid workers, and on the basis of the average daily wage referred to in Article 57 of this Law in the case of those paid on piecemeal.
In accordance with the UAE Labor Law, in the event that the employment contract expires, the dues shall be paid to the worker within ten days from the date of expiry of the labor contract. Otherwise, the worker has the right to resort to the Labor Court and to file a complaint before the Labor Dispute Settlement Committee with the Labor Court. If it cannot, it shall refer the matter to the Federal Court to decide and adjudicate it in a court and force the employer to pay the dues.
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