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UAE Labour Law

Ending an Employment Contract in UAE Labour Law: Termination, Dismissal and Resignation, Articles 42 to 48 Explained

What UAE labour law says about how contracts end, dismissal without notice, resigning without notice, unlawful dismissal compensation and company takeovers, article by article.

Mir Ali
Mir Ali Founder, MIRDXB PRO
Updated 14 Oct 2026 16 min read
Ending a Contract: Notice and Dismissal - MIRDXB PRO
Reviewed by Mir Ali, founder of MIRDXB PRO. Checked against official sources and the real cases we have handled over the past three years. How we write and check our guides

Key takeaways

  • A contract can end in 9 ways, from mutual written agreement or expiry to the company closing or the worker’s death (Decree-Law Art. 42).
  • Either side can end the contract for a legitimate reason with written notice of 30 to 90 days, as the contract says. The worker is paid in full during notice, and whoever skips notice pays the wage for it (Art. 43).
  • If the employer gives notice, the worker may take one unpaid day a week during the notice period to look for a new job (Art. 43(5)).
  • Dismissal without notice is allowed only on 10 serious grounds, after a written investigation, with a written and reasoned decision (Art. 44).
  • A worker can leave without notice and keep all rights in 4 situations, including unpaid obligations after a MOHRE notice, assault or harassment, a serious danger at work, or being forced into a different job (Art. 45).
  • Dismissal for making a genuine complaint is unlawful. A court can award up to 3 months’ wage on top of notice pay and gratuity (Art. 47).

In short: Under Federal Decree-Law No. 33 of 2021, either side can end a UAE employment contract for a legitimate reason with written notice of 30 to 90 days, as the contract says (Art. 43). Whoever skips notice pays the wage for the unserved days. An employer may dismiss without notice only on 10 grounds, after a written investigation (Art. 44), and a worker may leave without notice in 4 cases while keeping all rights (Art. 45). Dismissal for a genuine complaint to MOHRE is unlawful, and a court can add up to 3 months’ wage (Art. 47). Final dues are owed within 14 days, and claims must be made within 2 years (Arts. 53 and 54).

This chapter covers how employment ends: the ways a contract can end, notice, dismissal without notice, leaving without notice, and unlawful termination. We go through each article in order: a short quote from the official text, then what it means in simple words.

Laws explainedDecree-Law 33/2021 and Resolution 1/2022
Articles coveredDecree-Law 42 to 48 · Regulation 25 and 26
Checked against official text14 October 2026
Looking for the practical guide?

This page explains what the law says. For the practical side of resigning or being let go, see: Notice period: how it works in practice · Cancelling an employment visa · Gratuity calculator. Leaving the UAE job and need the permit and residence cancelled? See our visa cancellation service in Dubai.

How can an employment contract end in the UAE?

Article 42

The 9 ways an employment contract ends

Federal Decree-Law 33/2021

“If the parties agree in writing to terminate it.”Federal Decree-Law No. 33 of 2021, Article 42(1)

In plain English

  1. Both sides agree in writing to end it.
  2. The contract term expires and is not renewed.
  3. One side ends it with notice, following the law and the contract’s notice period.
  4. The employer dies, if the contract was tied to the employer personally.
  5. The worker dies, or becomes totally and permanently disabled (medical certificate needed).
  6. The worker is sentenced by a final judgment to at least 3 months’ imprisonment.
  7. The company closes permanently.
  8. The employer goes bankrupt or insolvent, or exceptional economic reasons stop the business.
  9. The worker no longer meets the conditions to renew the work permit, for reasons outside the employer’s control.

Illustrative example

A company and an employee agree to part ways early and both sign a settlement letter. That ends the contract under Article 42(1), and the agreed terms, plus at least the legal entitlements, apply.

What it means for you

However a contract ends, the worker’s end-of-service dues are owed within 14 days (Article 53). A “mutual agreement” cannot take away rights the law gives (Article 65).

Article 25

When the employer goes bankrupt or insolvent

Cabinet Resolution 1/2022

“The Ministry may, based on its sole discretion, cancel the worker’s employment permit pursuant to the court judgment declaring the employer’s bankruptcy”Cabinet Resolution No. 1 of 2022, Article 25(2)

In plain English

The contract ends if a court declares the employer bankrupt or insolvent, or if the authorities decide the employer cannot continue for exceptional economic reasons beyond its control. MOHRE may then cancel the worker’s permit and issue a new one, so the worker can move on.

Illustrative example

A trading company is declared bankrupt by the court. MOHRE cancels its workers’ permits so they can be employed elsewhere, while their claims are pursued in the bankruptcy.

What it means for you

A closing company still owes your wages and gratuity, and those debts rank highly (Article 65(7)). If your company closes without settling, a MOHRE claim is the first step.

What notice period applies when you resign or are terminated?

Resigning means ending the contract under Article 43: give written notice of the period in your contract, which must be between 30 and 90 days. If you leave without serving it, you owe the employer a notice allowance equal to your last wage for the unserved days (Art. 43(3) and (4)). Resigning does not cut your gratuity: Article 51 gives it to every full-time foreign worker with at least one year of continuous service, with no reduction for resigning (see our gratuity chapter, Articles 49 to 53). Termination by the employer follows the same notice rule, and the worker also gets one unpaid job-search day a week (Art. 43(5)). The 2021 law has no separate resignation rules for “limited” and “unlimited” contracts: Article 43 applies to every contract.

Article 43

Ending the contract with notice

Federal Decree-Law 33/2021

“provided that the period is not less than thirty (30) days, and not more than ninety (90) days.”Federal Decree-Law No. 33 of 2021, Article 43(1)

In plain English

  • Either side may end the contract for a legitimate reason, with written notice of the period in the contract: at least 30 and at most 90 days.
  • The contract stays in force during notice, and the worker is paid the full last wage and must work if asked.
  • Both sides can agree to waive or shorten notice, but the worker keeps all rights for the agreed notice period.
  • Notice must be the same length for both sides, unless a difference favours the worker.
  • Whoever does not give notice pays the other a notice allowance equal to the wage for the notice period, or the part not served, even if there was no harm.
  • If the employer gives notice, the worker can take one unpaid day a week to look for work, telling the employer at least 3 days in advance.

Illustrative example

Elena’s contract has a 60-day notice period. Her employer ends her contract and tells her to leave the same day. The employer must pay her 60 days’ wage as a notice allowance.

What it means for you

Our notice period guide covers how to serve notice and calculate notice pay in practice. Notice given during leave only starts after you are due back (Article 35).

Can you be dismissed, or resign, without notice in the UAE?

Article 44

The 10 grounds for dismissal without notice

Federal Decree-Law 33/2021

“after conducting a written investigation with him, and the decision to dismiss shall be in writing and reasoned”Federal Decree-Law No. 33 of 2021, Article 44

In plain English

An employer may dismiss without notice only after a written investigation, with a written, reasoned decision handed to the worker, and only if the worker:

  1. impersonated someone or used false certificates or documents;
  2. made a mistake causing grave material loss, or deliberately damaged the employer’s property and admitted it (the employer must tell MOHRE within 7 working days);
  3. broke written, displayed safety rules they had been told about;
  4. kept failing in their basic duties after a written investigation and two warnings of dismissal;
  5. disclosed trade secrets, causing losses or gaining a personal benefit;
  6. was drunk or on drugs at work, or committed an act against public morals at work;
  7. assaulted the employer, a manager or a colleague, verbally or physically, at work;
  8. was absent without a legitimate reason for more than 20 non-consecutive days in one year or more than 7 consecutive days;
  9. exploited their job for personal gain;
  10. worked for another company without following the rules.

Illustrative example

An employee is absent for 9 days in a row with no explanation. Under Article 44(8), after a written investigation, the employer can dismiss him without notice.

What it means for you

A dismissal without notice that skips the written investigation, or relies on a reason not on this list, can be challenged. Ask for the investigation record and the written decision.

Article 45

The 4 situations where a worker can leave without notice

Federal Decree-Law 33/2021

“The Worker may leave work without warning while retaining his rights upon termination of service”Federal Decree-Law No. 33 of 2021, Article 45

In plain English

  1. The employer breaks its obligations, and does not fix it after MOHRE notifies it. The worker must notify MOHRE 14 working days before leaving.
  2. The employer or its legal representative assaulted the worker or subjected them to violence or harassment. The worker must report to the authorities and MOHRE within 5 working days of being able to.
  3. There is a serious danger at work the employer knew about and did not remove (see Regulation Article 26).
  4. The worker was given fundamentally different work without written consent, outside the emergency rules in Article 12.

In all four cases the worker keeps all end-of-service rights.

Illustrative example

Ravi’s salary has not been paid for three months. He files with MOHRE, MOHRE notifies the employer, and nothing changes. After telling MOHRE 14 working days in advance, he can leave without notice and keep his gratuity.

What it means for you

Follow the steps exactly, especially the MOHRE notification and the time limits, before leaving. Walking out without them risks being treated as absent (Article 50).

Article 26

What counts as a serious danger

Cabinet Resolution 1/2022

“Exposure to electrical wires connected to a power source which may cause an electric shock or death.”Cabinet Resolution No. 1 of 2022, Article 26(2)

In plain English

A serious danger that lets a worker leave without notice includes:

  • a possible source of fire;
  • exposed live electrical wires that could cause shock or death;
  • hazardous chemicals that could cause illness;
  • unusual temperatures that could cause burns;
  • loud noise that could cause permanent hearing damage;
  • radiation that could cause cancer or blindness;
  • biological hazards that could cause illness.

Illustrative example

Workers report exposed live cables in a workshop. The employer does nothing. Under Article 45(3) and Regulation Article 26, they can leave without notice and keep their rights.

What it means for you

Report the danger to the employer in writing first. The law requires that the employer knew and failed to act.

What counts as unfair dismissal in the UAE?

Article 46

No dismissal for ill health before sick leave is used

Federal Decree-Law 33/2021

“The Employer may not terminate the Worker’s service for lack of health fitness, before he has completed the leaves legally entitled to him”Federal Decree-Law No. 33 of 2021, Article 46

In plain English

An employer may not end a contract because the worker is medically unfit until the worker has used the leave the law gives them. Any agreement saying otherwise is void, even if signed before the law came in.

Illustrative example

After surgery, a worker is off sick for 40 days. The employer cannot dismiss her for ill health during that time; she still has sick leave left under Article 31.

What it means for you

Keep your sick leave certified with medical reports. They show you are within your legal leave.

Article 47

Unlawful dismissal and its compensation

Federal Decree-Law 33/2021

“the amount of compensation must not exceed the wage of the Worker for a period of three (3) months”Federal Decree-Law No. 33 of 2021, Article 47(2)

In plain English

  • Dismissal is unlawful if it is because the worker made a serious complaint to MOHRE, or filed a case against the employer that proved to be true.
  • A court sets fair compensation, considering the type of work, the harm and the length of service, up to 3 months’ wage (last wage received).
  • This is on top of the notice allowance and the gratuity.

Illustrative example

Hassan complains to MOHRE about unpaid overtime and wins. Two weeks later he is dismissed. A court can award him up to 3 months’ wage, plus his notice pay and gratuity.

What it means for you

Keep a copy of any complaint you file and the date. The link between the complaint and the dismissal is what proves an Article 47 case. Every claim starts with MOHRE, which first tries an amicable settlement and can issue a binding decision on claims of up to AED 50,000; other disputes go to court (Art. 54(1), (2) and (4)). No claim is heard more than 2 years after the employment ends (Art. 54(9)). Our guide on how to file a MOHRE complaint covers the steps.

Article 48

Contracts survive a change of company owner or form

Federal Decree-Law 33/2021

“the new Employer shall be responsible for implementing the terms of those contracts”Federal Decree-Law No. 33 of 2021, Article 48

In plain English

If a company changes its legal form or ownership, existing employment contracts continue. The new employer must honour them from the date the company’s details are changed with the authorities.

Illustrative example

An LLC is sold to new owners. Its employees keep their contracts, salaries and service history; the new owners take on the obligations.

What it means for you

A takeover does not reset your service or your gratuity. Ask the new owners to confirm your contract continues.

Every way out, compared

Articles 39 and 42 to 48 describe different exits, each with its own notice rule and its own extra money. Final dues are owed within 14 days in every case (Art. 53). Gratuity is covered in the next chapter.

How it endsNoticeMoney on top of normal duesConditionsArticle
Worker resigns30 to 90 days, writtenNone. If the worker skips notice, the worker owes the notice allowanceLegitimate reason; same notice for both sides unless better for the worker43
Employer ends the contract30 to 90 days, writtenNotice allowance if notice is not served1 unpaid job-search day a week during notice43
Mutual agreementAs agreedAs agreedIn writing; cannot take away legal rights42(1), 65
Fixed term expiresNone neededNoneNot renewed42(2)
Dismissal without noticeNoneNoneOne of 10 grounds, written investigation, written reasoned decision44
Dismissal as a disciplinary penaltyFollows the penalty processNone; gratuity keptWritten charge, hearing, deadlines39; Reg. 24
Worker leaves without noticeNoneNone; all end-of-service rights keptOne of 4 situations, each with its own steps45
Unlawful dismissal after a genuine complaintNotice allowance still dueUp to 3 months’ wage, set by a courtComplaint to MOHRE was serious, or the case against the employer was proven47
Company closes or goes bankruptNoneNone; wages and gratuity rank as priority debtsMOHRE may cancel the permit so the worker can move42(7)–(8); Reg. 25; 65

Notice clock calculator

Enter the date notice was given and the notice period in the contract.

Notice period and deadlines

Example: a resignation with 30 days of notice, before you enter the date. Change any answer.

Who gave notice?
Adjust details Monthly wage: not entered · Change

Your resultExample

Notice runs 30 to 90 days as in the contract; final dues are due within 14 days of the end, and a labour claim within 2 years.

30 daysnotice period in the contract

Notice given during leave starts only after the leave ends (Art. 35).

Notice period ends
Enter the notice date
Final dues paid by
14 days after the notice ends
Last day to file a labour claim
2 years after the notice ends
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Law text checked 1 Oct 2026 (uaelegislation.gov.ae). Estimate, not legal advice; the authority's payment screen and decision are final.

Full breakdown
Notice period endsEnter the notice date
Job-search days availableNot applicable
Notice allowance if notice is not servedEnter a wage
Final dues paid by14 days after the notice ends
Last day to file a labour claim2 years after the notice ends

Sources

Save or share

Based on Decree-Law Articles 43 (30 to 90 days, job-search day), 53 (14 days) and 54(9) (2 years). Notice is limited to 30–90 days. The allowance estimate uses monthly wage ÷ 30 per day. Notice given during leave only starts after the leave ends (Art. 35).

Leaving without notice: follow the steps in order

Article 45 protects your rights only if you follow its steps. Leaving first and complaining later risks being treated as absent (Art. 50).

  1. Employer breachComplain to MOHRE firstFor unpaid wages or other broken obligations, file with MOHRE. MOHRE notifies the employer.
  2. If nothing changesTell MOHRE 14 working days before you leaveOnly then can you leave without notice and keep all rights (Art. 45(1)).
  3. Assault or harassmentReport within 5 working daysReport to the authorities and MOHRE within 5 working days of being able to (Art. 45(2)).
  4. Serious dangerReport the danger in writingThe law requires that the employer knew and did not remove it (Art. 45(3); Regulation Art. 26). A dated written report proves that.
  5. Different job imposedRefuse in writingMoving you to fundamentally different work needs your written consent, except in the emergency cases in Article 12 (Art. 45(4)).

Dismissed without notice? Check these points

  • There was a written investigation in which you were heard.
  • The decision is written, gives reasons and was handed to you.
  • The reason is one of the 10 grounds in Article 44.
  • For poor performance of basic duties: there were two earlier written warnings of dismissal (Art. 44(4)).
  • For absence: more than 7 days in a row, or 20 days in total within one year, without a legitimate reason (Art. 44(8)).
  • For deliberate damage: the employer told MOHRE within 7 working days (Art. 44(2)).
  • You were not on sick leave you are legally entitled to (Art. 46).
  • The dismissal did not follow a genuine complaint you made to MOHRE (Art. 47).
MirDxbPRO analysis: three points most summaries miss

  1. Notice is symmetrical. Article 43 requires the same notice for both sides unless a difference favours the worker. A contract with 90 days for the worker and 30 days for the employer is the wrong way round.
  2. The job-search day is unpaid and only applies when the employer gives notice. On a 30-day notice that is 4 days at most, and you must give 3 days’ warning each time (Art. 43(5)).
  3. Unlawful-dismissal compensation adds to the other money. The court award of up to 3 months’ wage comes on top of the notice allowance and gratuity (Art. 47(3)). The date of your complaint is the key evidence.

Quick reference: the numbers in this chapter

RuleFigureWhere
Notice period30 to 90 days, as in the contractDecree-Law Art. 43(1)
Job-search day during employer’s notice1 unpaid day a week, 3 days’ warningDecree-Law Art. 43(5)
Dismissal for absenceMore than 7 consecutive days, or 20 non-consecutive days in one yearDecree-Law Art. 44(8)
Employer reports deliberate damage to MOHREWithin 7 working daysDecree-Law Art. 44(2)
Worker notifies MOHRE before leaving over employer breach14 working daysDecree-Law Art. 45(1)
Worker reports assault or harassmentWithin 5 working daysDecree-Law Art. 45(2)
Unlawful dismissal compensationUp to 3 months’ wage, plus notice and gratuityDecree-Law Art. 47(2)–(3)
Prison sentence that ends a contractAt least 3 months, final judgmentDecree-Law Art. 42(6)
Dismissed, thinking of resigning, or unsure whether you can leave without notice? Send us the facts on WhatsApp and we will tell you which article applies and what you are owed.

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Ending a contract: frequently asked questions

Can I be dismissed without notice in the UAE?

Only on one of the 10 grounds in Article 44 of Federal Decree-Law No. 33 of 2021, such as false documents, serious misconduct, assault or unexplained absence of more than 7 consecutive days, and only after a written investigation with a written, reasoned decision.

Can I resign without notice in the UAE and keep my gratuity?

Yes, in the four cases in Article 45: the employer breaches its obligations and does not fix them after MOHRE’s notice, the employer assaults or harasses you, there is a serious danger at work the employer ignores, or you are moved to fundamentally different work without consent. Each has steps you must follow.

What is the compensation for unfair dismissal in the UAE?

If dismissal is because of a genuine complaint to MOHRE or a successful case against the employer, a court can award up to three months’ wage, on top of notice pay and gratuity (Article 47).

How many days of absence lead to dismissal in the UAE?

Absence without a legitimate reason for more than 7 consecutive days, or more than 20 non-consecutive days in one year, allows dismissal without notice after a written investigation (Article 44(8)).

Can my employer end my contract because I am sick?

Not before you have used the leave the law gives you (Article 46). After all sick leave is used, if you still cannot return, the employer may end the contract and pay all dues (Article 31(5)).

What happens to my contract if the company is sold?

It continues. Under Article 48 the new employer must honour existing contracts from the date the company’s details are changed with the authorities.

Is a notice period in a UAE contract allowed to be longer for the worker than for the employer?

No. Article 43 requires the same notice period for both sides, unless a difference favours the worker. It must be between 30 and 90 days.

Do I have to follow steps before leaving without notice under Article 45?

Yes. For an employer breach, MOHRE must have notified the employer and you must tell MOHRE 14 working days before leaving. For assault or harassment, report to the authorities and MOHRE within 5 working days. Leaving without these steps risks being treated as absent.

What happens if I resign without serving my notice period?

You owe the employer a notice allowance equal to your last wage for the full notice period, or for the part you did not serve, even if the employer suffered no loss (Article 43(3) and (4)). Both sides can agree in writing to shorten or waive notice instead.

Do I lose my gratuity if I resign in the UAE?

No. Under Article 51, a full-time foreign worker with at least one year of continuous service gets gratuity of 21 days’ basic wage for each of the first five years and 30 days for each year after that, capped at two years’ wage. The 2021 law has no reduction for resigning.

How long do I have to file a labour claim after my contract ends?

Two years from the end of the employment relationship (Article 54(9)). Claims go to MOHRE first, which can decide claims of up to AED 50,000 and refers larger or unsettled disputes to court.

Please note. Quotes are from the official English translation on the UAE Legislation portal, checked on 1 October 2026. Every rule on this page was re-checked on 14 October 2026 against MOHRE’s consolidated text of the Decree-Law (with its amendments) and Executive Regulation, and u.ae; the absence ground in Article 44(8) was corrected to “20 non-consecutive days in one year”. The Arabic text in the Official Gazette prevails. Examples use invented names and are illustrative, not real cases. This page is general information, not legal advice; MOHRE’s or a court’s decision on your own case is final.

Mir Ali

Written by

Mir Ali

Mir Ali founded MIRDXB PRO, a PRO and visa services firm in Al Barsha, Dubai. Over the past three years he has personally handled more than 100 visa, Emirates ID, labour and company files across MOHRE, GDRFA, ICP and DET, and he reviews every guide on this site against those real cases.

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