Termination while on leave under UAE Labour Law

Workplace dismissals can create considerable uncertainty, especially when decisions coincide with scheduled time off. Under mainland UAE regulations, specific statutory rules dictate how companies can end a working relationship and when notice requirements formally take effect if an individual is away from work.

According to an advisory reported by Khaleej Times, Federal Decree-Law No. 33 of 2021 Regarding the Regulation of Employment Relationships outlines strict boundaries for ending employment contracts during leave periods. While companies are permitted to take this step, they must follow statutory notice procedures and possess valid grounds.

What the law says

The statutory framework addresses contract terminations and notice calculations through two main provisions. Under Article 43(1) of the Employment Law, either an employer or an employee may terminate an agreement provided there is a legitimate reason and written notice is issued to the opposite party. The worker is required to serve the agreed warning period, which the statute sets at a minimum of 30 days and a maximum of 90 days.

Furthermore, Article 35 of the law specifically clarifies the validity of notice periods during periods of absence. If either party decides to terminate the employment contract while the worker is on leave, the warning period does not start immediately. Instead, the period officially commences only on the day following the date scheduled for the worker's return from leave, unless both parties have formally agreed otherwise.

What it means for employers

For businesses operating in mainland UAE, ending a contract during an employee's approved leave involves precise timing requirements. Employers cannot use an employee's annual leave or authorised absence to run down the statutory notice period without mutual agreement.

Management must ensure that any dismissal notice is delivered in writing and grounded in a legitimate reason. Because the legally mandated notice period (between 30 and 90 days) begins only on the day after the worker is scheduled to return, companies must plan operational transitions and payroll commitments accordingly. Breaching these procedural timelines or failing to establish a valid basis can expose an organisation to formal workplace disputes.

What it means for employees

Workers who receive notice while taking approved leave retain statutory safeguards under mainland rules. Being away does not prevent a company from issuing a termination notice, but it does protect the timing of the notice period. Unless an employee has consented to an alternative arrangement, their notice counter will not begin until the day after they are scheduled to return.

During this subsequent period, employees must work through the agreed warning timeframe as set in their contract, within the 30 to 90 days legal parameters. If an individual believes that the termination lacked a legitimate justification, they are entitled to seek redress by raising an official dispute with the Ministry of Human Resources and Emiratisation (MOHRE).

What to do now

• Check the exact terms of your employment contract to verify the agreed notice timeframe, ensuring it falls within the required 30 to 90 days window.
• Retain all written documentation, including initial leave approvals and any dismissal letters delivered during absence.
• Calculate the official effective date of termination, remembering that notice begins the day after scheduled return unless mutually agreed otherwise.
• Contact the Ministry of Human Resources and Emiratisation (MOHRE) for regulatory clarity or to submit a complaint if you suspect termination without a legitimate reason.
• Seek qualified legal counsel or speak directly with official authorities, as statutory provisions provide general guidance rather than formal legal advice.