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UAE: How can an employee be terminated legally for non-performance?

In the country, it is an employee’s obligation to work diligently and improve his performance at work

Question: I work for a company in mainland Dubai. What is the legal way to terminate the services of an employee for non-performance? I ask because I have a member of my team who is not very good at his job. I want to know the legalities/process to end his tenure so the company is not sued for wrongful termination.

Answer: In the UAE, it is an employee’s obligation to work diligently and improve his performance at work. This is in accordance with Article 16(8) of the Federal Decree Law No. 33 of 2021 on the Regulation of Employment Relations, which states, “The employee shall work diligently and constantly to develop his professional and job skills and improve his performance to the employer.”

Furthermore, if an employee is not performing his work in accordance with the employment contract, an employer may impose disciplinary actions against an employee such as notifying them and warning him/her in writing, and may also terminate such employee from employment.

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This is under Article 39 (1) (a), (b) & (g) of the Employment Law, which states, “The employer, or his representative, may impose any of the following sanctions on any employee who violates the provisions of this Decree-Law and its Executive Regulations and implementing resolutions:

a. Written attention draw

b. Written notice (warning)

g. Dismissal with payment of severance pay”

In addition, an employer may dismiss an employee without service of stipulated notice period on grounds of poor performance once the employee is served with two written warnings and a conclusion of investigation. This is under Article 44 (4) of the Employment Law, which states, “An employer may dismiss the employee without prior notice, after a written investigation, and dismissal decision shall be in writing and reasoned and given by the employer or his representative to the employee if the employee fails to perform his main duties in accordance with the employment contract and fail to remedy such failure despite a written investigation with him on the matter and two warning that he will be dismissed in case of recidivism.”

An employer may not accuse an employee of any employment-related violation if an employer finds out about such a violation after 30 days.

Additionally, if an investigation confirms a violation, any disciplinary action must be initiated within 60 days from the completion of the investigation. This is in accordance with Article 24 (4) of the Cabinet Resolution No.1 of 2022 on the Implementation of Federal Decree Law No. 33 of 2021 Regarding the Regulation of Employment Relations.

However, if an employer does not follow the aforementioned provisions of law with regards to the termination of employment of an employee on grounds of performance, then an employee may file a complaint against the employer with the Ministry of Human Resources and Emiratisation and the termination may be considered as arbitrary in accordance with Article 47 of the Employment Law.

Based on the above, you may follow the procedures laid down in the aforementioned provisions of law to terminate an employee on grounds of non-performance.

Ashish Mehta is the founder and Managing Partner of Ashish Mehta & Associates. He is qualified to practise law in Dubai, the United Kingdom and India. Full details of his firm on: www.amalawyers.com. Readers may e-mail their questions to: news@khaleejtimes.com or send them to Legal View, Khaleej Times, PO Box 11243, Dubai.

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