UAE law: When can an employment contract be terminated?

According to Federal Decree-Law No (33) of 2021, the new labour law and regulations about the number of cases in which an employment contract may be terminated are as follows: 

  1. The written agreement of both parties upon its termination.
  2. Expiry of the term specified in the contract, unless it is extended or renewed as per the provisions hereof.
  3. Based on the wish of either party, provided that the provisions hereof regarding termination of the employment contract and the notice period agreed upon in the contract are observed.
  4. The employer’s death if the subject of the contract is related to its entity.
  5. The worker’s death or full permanent inability to work, as proven by a certificate issued by the medical entity.
  6. A final judgment issued against the worker by a freedom- restricting penalty for a period of not less than (3) three months.
  7. Closing the establishment permanently, in accordance with the legislation in force in the State.
  8. The bankruptcy or insolvency of the employer, or any economic or exceptional reasons that prevent the continuation of the project, in accordance with the conditions, rules and procedures specified by the Implementing Regulation and the legislation in force in the State.
  9. The worker’s failure to fulfill the conditions for renewing the work permit for any reason beyond the control of the employer.

Source: MOHRE

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