When can an employer terminate employment and deny end-of-service benefits?

If the employee has caused any loss to the company, then they can adjust it as per UAE law. Otherwise, they cannot withhold it.

Dear Questioner,

In the UAE, an employer can terminate employment but generally cannot deprive the employee of end-of-service benefits unless there are serious breaches by the employee.

Here's a breakdown of the key points:

1. Termination with Benefits:

In most cases, termination follows proper procedures and notice periods, and the employee retains their end-of-service benefits as per UAE Ministry of HR & Emiratization guidelines on terminating employment contracts and arbitrary dismissal.

2. Employer Initiated Termination:

Even if the employer initiates termination, they typically need to provide a valid reason and follow due process.

This includes providing written notice and adhering to the agreed-upon notice period in the contract as per UAE Ministry of HR & Emiratization guidelines on terminating employment contracts and arbitrary dismissal.

3. Losing Benefits:

An employee can lose end-of-service benefits in some situations, such as:

- Serious Misconduct: This could include theft, fraud, or violence in the workplace.

- Absconding: If the employee abandons their job without informing the employer.

For further inquiries about your topic, you can reach our office or contact us via email or WhatsApp at [------].

Hello,

While following the proper notice period usually allows the employee to receive end-of-service benefits, in cases of serious employee misconduct or immediate dismissal situations, the employer might withhold them.

However, if the termination is deemed arbitrary, which is unfair or unrelated to work, the employee can challenge it and potentially receive compensation, including benefits.

If you need further clarification, please share your WhatsApp number to discuss.

Dear Questioner,

In the United Arab Emirates, an employer can terminate an employee without notice and withhold their end-of-service gratuity in the following cases in accordance with article no. 44 of UAE Labour Law no 33 of 2021:

- If the employee assumes a false identity or nationality or presents forged documents or certificates.

- If the employee commits a serious mistake that causes significant financial loss to the employer, or intentionally damages the employer's property and acknowledges it.

- If the employee violates the internal regulations of the workplace, which are written and publicly displayed, and the employee has been informed of the regulations.

- If the employee fails to perform their basic duties as outlined in their employment contract, and despite a written investigation and two written warnings, the employee continues to breach their duties.

- If the employee reveals a secret of the workplace that relates to industrial or intellectual property, and the revelation causes harm to the employer, deprives the employer of an opportunity, or brings personal benefit to the employee.

- If the employee is convicted by a competent court of a serious offense against honor, integrity, or public morals.

- If the employee is found to be intoxicated during working hours, or is under the influence of drugs, or commits an act that violates public morals in the workplace.

- If the employee assaults the employer, a responsible manager, or a colleague during working hours, whether verbally or physically.

- If the employee is absent from work without a valid reason for more than 20 days in a year, or more than 7 consecutive days.

- If the employee misuses their work position for personal gain.

- If the employee takes up employment with another company without complying with the regulations and procedures in place.

An employer may terminate an employee without any reason, but they cannot deny the employee their end-of-service benefits.

Dear Questioner,

Employers can terminate employment and deprive an employee of end-of-service benefits under certain legally permissible grounds.

These grounds may include:

- Misconduct:

Employers can terminate employment and withhold benefits if the employee engages in misconduct that seriously breaches the terms of their contract or violates company policies. Misconduct may include theft, physical violence, sexual harassment, or other serious offenses.

- Disciplinary Reasons:

Employers can also terminate employment for less severe disciplinary reasons, such as attendance issues, poor performance, or insubordination. However, employers must follow established procedures for addressing these issues before terminating employment and withholding benefits.

- Retrenchment:

In some cases, employers may be forced to terminate employment due to economic circumstances beyond their control, such as a downturn in business or financial difficulties. In these cases, employees may be entitled to severance pay or other forms of compensation as required by law.

- Statutory Grounds:

Employers may also be permitted to terminate employment and withhold benefits based on statutory grounds, such as the employee’s illness or disability that renders them unable to perform their job duties. However, employers must comply with applicable laws and regulations regarding disability discrimination and reasonable accommodations.

- Mutual Agreement:

Finally, employers and employees may mutually agree to terminate employment and forgo end-of-service benefits as part of a settlement agreement or other negotiated arrangement.

It is important to note that the specific conditions under which an employer can terminate employment and deprive an employee of end-of-service benefits may vary depending on the jurisdiction and the terms of the employment contract.

Employees who believe they have been unfairly denied benefits should consult with an attorney or labor advocate for guidance on their legal options.