In Dubai’s Jebel Ali Free Zone (JAFZA), knowing the rules around employment termination isn’t just good practice—it’s necessary. These rules not only dictate how employment can end but also protect the interests and rights of both employers and employees. In 2025, these regulations continue to guide actions around dismissal, notice periods, and employee entitlements.
JAFZA’s termination rules are designed to ensure fairness and compliance with UAE Labour Law. These rules cover various scenarios and specify notice periods and entitlements like gratuity. For instance, during a probation period, different notice requirements apply: employers must provide 14 days’ notice, while employees are expected to give 30 days unless they’re leaving the UAE, in which case it’s reduced to 14 days.
Contracts automatically end if they expire without renewal. Legal grounds for termination include misconduct, such as embezzlement, identified under Article 42 of the UAE Labour Law, which allows immediate dismissal without notice.
Automated termination occurs under specific conditions, like an employee’s incapacity due to a serious accident. In such cases, no advance notice is needed.
The concept of a notice period is critical. JAFZA mandates a minimum of 30 days’ notice, during which employees are entitled to full salaries. Alternatively, employers can provide payment in lieu of notice.
Certain situations permit instant dismissal without notice, particularly in cases of serious misconduct, such as fraud or persistent absenteeism. Employees too can resign without notice when unsafe conditions or health issues arise, as specified by Article 45 of the UAE Labour Law.
Unlawful dismissals, such as retaliatory actions against employees who file legitimate complaints, can lead to compensation claims. Wrongful dismissal might entitle employees to up to three months’ salary as compensation.
Employers must adhere to a defined disciplinary process, including notifying employees of allegations and documenting the proceedings, ensuring they’re given a chance to present their side.
After termination, employers are required to finalize all payments and cancel an employee’s visa within 30 days. Gratuity payments are mandated for those who have served over a year, based on basic salary. If a contract ends due to death, gratuity is owed to the employee’s heirs.
Airfare obligations also come into play. If terminated, employees are entitled to airfare back to their home country unless dismissed for reasons outlined in Articles 44 or 45.
Legal support is often essential in navigating these complexities, ensuring compliance and protecting rights on both sides of the employment contract. Professional help can be particularly important in cases of unlawful dismissal or in disputes over gratuity and final settlements.
Both employers and employees in JAFZA benefit from understanding these termination guidelines. They outline clear procedures and protections that are vital to preventing disputes and ensuring fair treatment. Staying informed about these rules helps maintain a harmonious work environment and comply with the legal framework of the UAE.
