Ministry lists situations that lead to termination of employment contract in UAE

The Ministry of Human Resources and Emiratisation (Mohre) has identified the situations in which an employment contract may be terminated as per Article 42 of the Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations in the Private Sector, the ‘UAE Labour Law’. These situations are:

1-     If the term of the contract expires and is not, extended or renewed.

2-    If both, the employer and employee mutually agree in writing to end it.

3-    If 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-    If a worker faces a final court judgement of a freedom-restricting penalty for a period of not less than three months.

7-    If the establishment is closed permanently, in accordance with the legislations in force in the UAE.

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

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