UAE jobs: What are the rights of an employee being fired? Visa cancellation, salary payment procedures explained

Question: What is the legal procedure to terminate the services of an employee on grounds of poor performance? We have an employee in our Dubai-based (mainland) company, who has not been meeting his targets despite repeated warnings. Please take us through the procedure in terms of visa cancellation, end-of-service benefits, etc.

Response: Pursuant to your queries, it is assumed that you have issued warning notices to your employee in writing. Therefore, the provisions of Federal Decree Law No. 33 of 2021 on the Regulation of Employment Relations (the ‘Employment Law’) and the Cabinet Resolution No.1 of 2022 on the Implementation of Federal Decree Law No. 33 of 2021 Regarding the Regulation of Employment Relations (the ‘Cabinet Resolution No 1 of 2022’) are applicable.

In the UAE, an employee’s obligation is to work diligently. This is in accordance with Article 16(8) of the Employment Law, which states: “The employee shall work diligently and constantly to develop his professional and job skills and improve his performance to the employer." Therefore, if an employee is not performing his work in accordance with the employment contract, an employer may impose disciplinary actions.

This is in accordance with 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.”

Further, an employer may dismiss an employee without service of the stipulated notice period on grounds of poor performance once the employee is served with two written warnings upon conclusion of an investigation. This is in accordance with Article 44 (4) of the Employment Law, which states, "An employer may dismiss the employee without prior notice, after a written investigation with him, and dismissal decision shall be in writing an 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."

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