Working in the UAE? Know the Circumstances Under Which Your Employer Can Terminate Your Contract

  • 18/05/2025

Abu Dhabi: The Ministry of Human Resources and Emiratization (MoHRE) has clarified nine legally permissible conditions under which an employment contract can be terminated in the UAE's private sector. This initiative aims to safeguard the rights of both employers and employees while aligning with the evolving labor landscape of the country.

As per the latest update published on the ministry's official website, the following are the specific cases under which an employment contract may be legally terminated:

Contract Expiry: The employment contract ends and is not renewed or extended.

Mutual Agreement: Both employer and employee agree in writing to terminate the contract.

Notice Period Observed: Either party decides to terminate the contract by complying with legal conditions and notice period.

Death of Employer: If the employer passes away.

Death or Permanent Disability of Employee: Supported by a medical certificate.

Criminal Conviction: If the employee is sentenced to imprisonment for at least three months.

Business Closure: The company is permanently shut down as per UAE laws.

Financial Insolvency: Employer bankruptcy or financial incapacity to sustain the business.

Work Permit Issues: If the employee fails to meet requirements to renew their work permit for reasons beyond the employer’s control.

The ministry emphasized the importance of understanding these legal conditions to protect workers' rights and to ensure transparent employer-employee relationships.

Whether you're a newcomer or a seasoned professional in the UAE, staying informed about your rights and legal frameworks is essential to safeguarding your career in the Emirates.

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