UAE: Can employees be sacked without any explanation as part of restructuring process?

KT reader wants to know if there is a specific process to terminate the service of an employee

Question: Is there a process to terminate the services of an employee? Or can he/she be asked to leave as part of a restructuring process without any explanation?

Answer: It is assumed that your questions are in reference to the provisions of the Federal Law No. 33 of 2021 on the Regulation of Employment Relations and its executive regulations, as amended from time to time, on which we shall base our responses.

“Article (42)

An employment contract shall terminate in any of the following events:

1. By mutual written agreement of the parties.

2. The expiration of the term of the contract, unless it is extended or renewed pursuant to the provisions hereof.

3. Upon the will of either party, subject to the provisions of this Decree-Law in relation to termination of employment contract and notice period agreed upon in the contract.

4. Employer’s death unless the subject of the contract is connected with his person.

5. Employee’s death or permanent total disability, as evidenced by a certificate from the medical institution.

6. If the employee is convicted by a final order to a custodial penalty for a term of not less than 3 months.

7. The permanent closure of the Establishment, pursuant to the legislation in force in the UAE.