Terminate an Employee in UAE: In the UAE, terminating an employee requires careful legal consideration under Federal Decree-Law No. 33 of 2021 (UAE Labour Law). If not handled properly, it may result in:
MOHRE complaints
Compensation claims
Company fines or blacklisting
Court litigation
Delayed visa cancellation or end-of-service settlements
This guide explains how to terminate an employee in UAE legally in 2025, focusing on employer responsibilities, documentation, and compliant offboarding.
How to Terminate an Employee in UAE Legally—2025 MOHRE Guide
Types of Legal Termination in UAE (2025)
Terminate an Employee in UAE: The UAE Labour Law defines two major types of termination:
1. Termination with Notice (Standard)
This applies when either party ends the contract with a valid reason and serves the required notice period (usually 30 days).
Allowed Reasons:
Business downsizing
Role redundancy
Performance-based termination
Mutual agreement
2. Termination without Notice (Immediate)
Allowed under Article 44 when an employee:
Commits a gross misconduct
Leaks confidential info
Is absent for 7 consecutive days without valid reason
Found under influence of alcohol or drugs at work
Assaults employer or coworkers
Must provide written evidence and submit proof to MOHRE if challenged.
Employer Termination Checklist
Terminate an Employee in UAE: Before you terminate an employee in UAE, prepare:
| Item | Required? |
|---|---|
| Final written warning (for misconduct) | ✅ |
| Performance reviews (for underperformance) | ✅ |
| MOHRE labor contract copy | ✅ |
| Visa and Emirates ID status | ✅ |
| Settlement calculation sheet | ✅ |
| Record of previous disciplinary action | Optional but recommended |
| Company termination letter | ✅ |
Notice Period Rules in 2025
| Duration of Service | Minimum Notice Period |
|---|---|
| < 6 months | 14 days (during probation) |
| 6 months–5 years | 30 days |
| 5+ years | 90 days (in some cases) |
Failure to give proper notice = compensation equal to notice salary.
End-of-Service Benefits—What to Pay
Terminate an Employee in UAE: When you legally terminate employee in UAE, calculate the following:
| Item | Eligibility |
|---|---|
| Last month’s salary | All employees |
| Accrued but unused leave | Pro-rata (based on service) |
| Gratuity (EOSB) | If worked ≥ 1 year |
| Notice period salary | If employer waives working period |
| Flight ticket | Optional (if in contract) |
| Bonus/commissions | If agreed contractually |
Gratuity Calculation Example:
Basic Salary: AED 1,500
Years Worked: 2
Gratuity = 21 days’ salary/year × 2 = AED 2,100
Termination Letter Template (2025)
Subject: Termination of Employment
Dear [Employee Name],
We regret to inform you that your employment with [Company Name] will be terminated effective [Date], in accordance with UAE Labour Law.
Reason: [e.g., Role redundancy due to restructuring]
Your notice period begins on [Start Date] and ends on [End Date].
You will receive all entitled end-of-service benefits and dues as per the law.
Please return all company property and complete the clearance formalities.
Regards,
[HR Manager Name]
[Company Name]
MOHRE Termination Process Digital Submission
Terminate an Employee in UAE: All terminations must be registered through
MOHRE Portal or Tasheel
Termination reason entered
Visa cancellation process initiated
End-of-service settlement signed by both parties
If worker disagrees, they can file complaint within 14 days
Common Mistakes Employers Make
| Mistake | Risk |
|---|---|
| No valid reason for firing | MOHRE dispute |
| Not paying gratuity correctly | Court penalty |
| Cancelling visa before EOSB payment | Legal case |
| Verbal termination only | Not legally valid |
| Withholding documents/passport | Criminal offense |
What to Do If the Employee Disputes Termination
Submit all documents to MOHRE dispute section
Attend mediation session
Provide termination letter, salary slip, WPS proof, attendance
If unresolved, case moves to Labour Court
Pro Tips for Employers
| Tip | Why It Matters |
|---|---|
| Always issue 2 written warnings | Reduces legal risk |
| Terminate during visa validity | Avoid overstays |
| Get signed exit checklist | HR protection |
| Use a final settlement agreement | Avoid future claims |
| Consult Mahad HRC if unsure | Save time & avoid penalties |
How Mahad HRC Supports Terminations
Terminate an Employee in UAE: We assist UAE companies with:
Legal termination process documentation
Digital submission via MOHRE portal
Final settlement calculations
Labour complaint defense
Employee offboarding SOPs
HR policy compliance for 2025
Avoid fines. Protect your business. We’ll handle the offboarding legally.
Final Words
“Termination isn’t about removing a worker it’s about protecting your company legally.”
Terminate an Employee in UAE: If you need to terminate employee in UAE, follow the law, document everything, and ensure a smooth closure. Mahad HRC is here to help you stay 100% compliant in 2025.