Terminations rarely go wrong because of the decision. They go wrong because of the process — the probation clock that was misread, the notice maths that was wrong, the paper trail that was never kept. In the UAE, those three errors are what turn a routine exit into a labour dispute.
What you’ll walk away knowing
- Probation is capped at 6 months and can never be extended or repeated.
- Notice periods after probation run 30 to 90 days; the statutory floor is 30.
- Summary dismissal (no notice) is lawful only for specific Article 44 reasons — and only with a documented investigation.
- Final dues must be settled within 14 days of the contract ending.
- Gratuity is 21 days’ basic pay per year for the first five years, 30 days after, capped at two years’ pay.
This is the field guide we give clients, built on Federal Decree-Law No. 33 of 2021 and its amendments. Work through it in order — the four areas below are exactly where most employer mistakes happen.
1. Get the probation clock right
Probation is governed by Article 9, and the rules are stricter than many employers assume:
- It is capped at six months from the start date. You may agree a shorter period, but you cannot extend beyond six months or restart probation with the same employee — not even for a different role or a promotion.
- To terminate during probation, the employer must give at least 14 days’ written notice.
- If the employee resigns to move to another UAE employer, they owe 30 days’ written notice, and the new employer may be required to reimburse recruitment costs.
- If the employee is leaving the country, the notice is 14 days.
Time on probation counts as continuous service for most entitlements. But end-of-service gratuity only begins once the employee completes a full year — so an exit inside the first six months generally carries no gratuity, even though the period still counts as service.
2. Do the notice maths
Once probation is passed, notice is governed by Article 43:
| Scenario | Notice required |
|---|---|
| Standard termination or resignation (post-probation) | Minimum 30 days; contracts commonly set 30–90 |
| Contract specifying more than 90 days | Not enforceable beyond 90 |
| During notice period | Salary cannot be reduced; if the employer terminated, the employee gets one day per week to job-search |
All contracts are now fixed-term — the old unlimited-contract distinction was abolished — so apply each contract’s agreed notice terms consistently across the team. Inconsistency between employees is itself a fairness risk.
3. Reserve summary dismissal for genuine cause
Dismissal without notice is lawful only in defined circumstances under Article 44 — forged documents, serious misconduct, repeated failure to perform duties after written warnings, safety breaches, unauthorised absence, assault, leaking confidential information, or abuse of position.
Even when the reason is valid, you must run a written investigation and issue a reasoned written decision, with supporting records retained. Skip that step and a justified dismissal can still be ruled arbitrary — turning a defensible exit into a compensation claim.
4. Settle correctly — and on time
The clock doesn’t stop at the last working day. Final settlement must be completed within 14 days of the contract ending, and it has several moving parts:
- Outstanding salary up to the final day.
- Payment for accrued but unused annual leave.
- Any notice-period compensation owed.
- End-of-service gratuity (see below).
- An experience certificate on request, plus visa and work-permit cancellation.
Gratuity at a glance
Gratuity is calculated on basic salary only — not total package — and requires at least one year of continuous service, with partial years paid pro-rata after the first. Importantly, resignation and termination now earn the same gratuity; the old reductions for resigning were removed under the 2021 law.
The thing that protects you most
Job expectations in writing. Performance conversations logged. Warnings issued and acknowledged. A consistent, objective basis for the exit. A termination challenged as discriminatory or retaliatory — for example, after an employee files a MoHRE complaint — is exactly where employers get exposed. A clean paper trail is the difference between a defensible decision and an expensive one. And note the stakes: under the 2024 amendments, serious violations can carry fines from AED 100,000 into the millions, multiplied by the number of workers affected.
Planning an exit, a restructure, or a redundancy?
We’ll pressure-test the process — notice, documentation and final settlement — before you act, so a routine decision stays a routine decision.
Talk to our team Check the numbers in our gratuity calculator →This article is general guidance, not legal advice. Specifics depend on your contracts and jurisdiction (DIFC and ADGM have separate frameworks) — confirm with MoHRE or a qualified advisor before acting.