According to the 2021 UAE Amendment Federal Decree No. 33 on the Labor Relations Ordinance, will come into effect on February 2, 2022. New labor law will replace the old Labor Law. Apart from free zone enterprises in Dubai, the modified New UAE Labor Law applies to all private sectors in the UAE. It makes several reasonable modifications that improve the working environment.
You may also read: What if Company Terminates Employees in UAE
Termination of Employee as per new Labor Law
Foundation for termination might be in the following situations as per Article 42 of Federal Law No 33 of 2021
- Both parties must have a consensus in writing about the termination.
- Expiry of contract’s term, unless it is extended or renewed.
- If one side requests, as per terms and conditions of this agreement related to the termination of the employment contract and the notice time as per the contract are followed.
- If the contract’s matter is tied to the employer’s entity and the employer dies.
- In case of any tragic incident like a worker’s death or permanent disability endorsed by a medical certificate.
- The final judgment against the employee, with a freedom-restricting penalty of at least three months, is imposed.
- Permanent closure of the enterprise by applicable state law.
- Any circumstance that prevents the project from proceeding in compliance with the requirements, rules, and procedures applicable under State law.
- Alternatively, the worker may not meet the requirements for renewing his or her work permit due to circumstances beyond the employer’s control.
Grounds to terminate a worker without notice
As per modified labor laws in UAE, there are only 10 grounds to terminate a worker without notice by the employer, which are as follows:
- If a representative professes to be another person and presents counterfeit certificates or papers;
- Assuming a representative makes a blunder that outcomes in extreme misfortunes to the business or deliberately hurt the business’ property, and the worker lets it be known, and the business reports the occasion to the Ministry of Human Resources within seven (7) working long stretches of becoming mindful of it.
- On the off chance that, regardless of monitoring the prerequisites, the representative abuses the foundation’s principles and guidelines about work or security measures;
- On the off chance that a worker neglects to meet their legally binding commitments and neglects to address the issue notwithstanding getting two admonition letters from the business and a proper examination concerning the matter;
- If a representative reveals secret information about modern or protected innovation, bringing about a deficiency of pay for the business, a deficiency of chance for the worker, or an individual increase for the representative;
- During working hours, the worker was smashed, affected by drugs or psychotropic substances, or participated in work environment conduct against public ethical quality.
- Throughout their business, the specialist attacked the business, the director in control, one of their bosses, or colleagues, utilizing words, activities, or some other type of attack criminal under state regulation.
- The representative was missing for over 20 days straight or over seven days without a sensible reason or clarification perceived by the business over the earlier year.
- The representative unlawfully utilized their situation to get individual advantages and results.
- The representative moved to one more organization without following the guidelines and cycles.
Suspension for a limited time
The New Labor Law defines an employer’s procedure to suspend an employee from work temporarily.
The need for the highest standards in employment practice is taken into account by the New Labor Law. It aims to promote the most advanced industrial advancement and labor market competence.
Position under New UAE Labor Law
To conduct a disciplinary inquiry, an employer can suspend an employee for a maximum of 30 days. Despite the suspension, the employee will receive half of their salary during this time. Regardless of whether the employee is found not guilty of the infraction, he or she will receive his or her full salary during the suspension period. This is one of the main differences between the previous and newly implemented law. This amendment includes a deadline for completing investigations that were not covered by previous law.
The new law can be summarized as it comes to balancing the working environment. It also imposes some restrictions on employers and employees. New labor laws in the United Arab Emirates will help set the highest labor standards. The main aim is to assist the labor market in achieving the highest possible industrial growth and efficiency levels. If you need any help regarding labor law from our registered labor lawyers in Dubai, then please write an email to us at email@example.com.Our representative will guide you further according to your case.