UAE: Legal Procedures for Terminating an Employee Due to Non-Performance
Question: How can I legally terminate the employment of a non-performing employee at my mainland Dubai company? I want to ensure that we follow the proper procedures to avoid any potential claims of wrongful termination.
Answer: In the UAE, employees are required to perform their duties diligently and strive for improvement, as outlined in Article 16(8) of the Federal Decree Law No. 33 of 2021 on the Regulation of Employment Relations. This law mandates that employees develop their professional skills and enhance their performance.
If an employee fails to meet performance standards, an employer has the right to take disciplinary actions, which may include issuing written notifications and warnings. According to Article 39 (1) (a), (b), and (g) of the Employment Law, the following sanctions can be imposed for violations:
a. Written attention draw
b. Written notice (warning)
g. Dismissal with payment of severance pay
An employer can terminate an employee without notice for poor performance if the employee has received two written warnings and a formal investigation has been conducted. Article 44 (4) specifies that dismissal should be documented in writing, detailing the reasons for termination if the employee fails to fulfill their duties despite previous warnings.
It is important to note that employers cannot accuse an employee of violations discovered more than 30 days after the fact. Furthermore, any disciplinary actions must be initiated within 60 days of completing an investigation, in accordance with Article 24 (4) of the Cabinet Resolution No.1 of 2022.
Failure to adhere to these legal procedures may result in the employee filing a complaint with the Ministry of Human Resources and Emiratisation, potentially leading to the termination being classified as arbitrary under Article 47 of the Employment Law.
To terminate an employee for non-performance, ensure compliance with the legal provisions detailed above.
News Source: Khaleej Times