Understanding the situation

An employment relationship in the UAE private sector can come to an end through resignation by the employee, termination by the employer, mutual agreement, or the expiry or non-renewal of a fixed-term contract. Each route can carry different implications for matters such as end-of-service benefits, references and any restrictive clauses in the contract.

The applicable law, the terms of the individual contract, and the circumstances surrounding the termination all play a role in determining what follows for both the employee and the employer.

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Considerations for employees

  • Review the employment contract for any terms about notice, restrictive clauses or conditions on resignation.
  • Keep records of the reason given for termination, if any, and any related correspondence.
  • Understand that the way employment ends may be relevant to other entitlements.
  • Seek advice if the circumstances of termination are unclear or disputed.

Considerations for employers

Both parties benefit from clear, contemporaneous documentation, regardless of how the relationship ends.

  • Ensure that any termination is documented consistently with the employment contract and applicable law.
  • Keep clear records of the reasons for termination and any related communications.
  • Consider how outstanding matters, such as final payments, will be addressed.
  • Seek advice where the termination may be contested or where the facts are complex.

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