In the UAE, termination of an employee during their leave must adhere to the UAE Labour Law (as per Federal Decree-Law No. 33 of 2021) and relevant regulations. Termination during leave can be a complex issue, and employers must proceed cautiously to avoid legal and reputational repercussions. Below is an overview of key considerations:
- General Protections During Leave
- Employees on leave, including annual leave, sick leave, or maternity leave, are generally protected from termination unless there is a legitimate, non-discriminatory reason.
- Terminating an employee solely for taking entitled leave is considered unlawful and may result in penalties or compensation claims.
- Types of Leave and Related Termination Rules
- Annual Leave: Employees on annual leave are entitled to job protection during the leave. Termination for taking or requesting annual leave is prohibited.
- Sick Leave: Employees are entitled to a maximum of 90 calendar days of sick leave per year (30 days fully paid, 30 days half-paid, and 30 days unpaid). Terminating an employee during this period is unlawful unless the leave exceeds 90 days and the employee cannot resume duties.
- Maternity Leave: UAE law provides 60 calendar days of maternity leave (45 days fully paid and 15 days half-paid). Termination during or because of maternity leave is explicitly prohibited.
- Unpaid Leave: If the leave is mutually agreed upon between the employer and employee, termination during this time must comply with lawful grounds unrelated to the leave itself.
- Lawful Reasons for Termination During Leave
Termination during leave may be justified if:
- Business Closure or Redundancy: The termination is part of a broader company restructuring or closure unrelated to the employee’s leave.
- Serious Misconduct: Proven gross misconduct (as outlined in Article 44 of the UAE Labour Law) can justify termination, even during leave.
- Contractual Breach: If the employee violates the terms of their contract or the law, termination may be lawful.
- Notice Period
- Even if termination is lawful, employers must adhere to the required notice period unless the termination is for cause under Article 44.
- If the employee is on leave during the notice period, the notice period should be extended to account for the leave, ensuring compliance with the law.
- Legal and Financial Obligations
- Ensure that all end-of-service benefits, including gratuity, unused leave balances, and other entitlements, are settled in full.
- Any disputes may be brought before the UAE Ministry of Human Resources and Emiratisation (MOHRE), which has authority to resolve employment-related conflicts.
- Practical Steps for Employers
- Consult MOHRE or Legal Experts: Before proceeding with termination, verify compliance with UAE Labour Law.
- Document the Reason: Maintain evidence that the termination is based on legitimate grounds unrelated to the leave.
- Communicate Professionally: Notify the employee in writing, providing a clear explanation for the termination and details of their entitlements.
Potential Penalties for Unlawful Termination
If the termination is deemed unlawful, the employer may face:
- Payment of compensation to the employee (up to three months’ salary).
- Fines or other penalties under UAE Labour Law.
