Terminated While on Leave? What Does UAE Labour Law Say?

Rules on termination reasons, written notice and the 30–90-day notice period

Dubai: Can an employer terminate an employee while they are on approved leave? Under Article 35 of UAE Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations, an employment contract may be terminated by either the employer or the employee, provided there is a valid legal reason and written notice is given to the other party. Unless both parties agree otherwise, the notice period begins on the day following the employee’s scheduled date of return from leave.

According to Article 43(1) of the UAE Labour Law, the notice period must follow the terms agreed upon in the employment contract. It must be at least 30 days and no more than 90 days. Employees are generally required to continue working during the notice period. Therefore, if a termination notice is issued while an employee is on leave, the notice period will normally begin the day after their scheduled return, unless both parties have agreed to a different arrangement.

Being terminated while on leave does not automatically make the termination illegal. However, the applicable requirements regarding a valid reason, written notice and the notice period must be followed. If an employee believes they have been terminated without a valid reason, they may consider filing a complaint with the UAE Ministry of Human Resources and Emiratisation (MOHRE).