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What's the official employment start date, and is a termination notice required if the contract isn’t renewed?

Hello,

Which date is considered the official start date for employees in a company: is it the date stamped by MOHRE on the contract, or the date the residence visa is issued?

Additionally, which date should we use to begin calculating the end-of-service benefits?

Is it mandatory to provide written notice of termination for employees after their contract ends, especially if the company does not intend to renew the contract?

Thank you for your assistance!

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Alawi Aljaberi Advocates & Legal Consultants
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29 Oct 2024, 13:56

Dear Questioner,

According to UAE labor law, the official start date for an employee is the date stamped by the Ministry of Human Resources and Emiratization (MOHRE) on the employment contract.

This is the date that should be used to calculate the end-of-service benefits.

29 Oct 2024, 14:03

I also want to know if it is mandatory to provide a written notice of termination for employees after their contract ends, particularly if the company does not intend to renew the contract.

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Amiri Advocates & Legal Consultants
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29 Oct 2024, 14:02

The first day is the first working day in the company, not the dates on the documents.

Yes, a notice must be sent to them, because without the notice, the contract will automatically renew.

29 Oct 2024, 14:19

Thank you, but what if there is no written proof of the first working day?

29 Oct 2024, 14:22

Then, the date written in the employment contract.

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Rashid Khalil Obaid Advocates and Legal Consultancy
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29 Oct 2024, 14:23

Dear Questioner,

Typically, the date stamped by MOHRE on the employment contract is considered the official start date for an employee in the UAE.

This date signifies the official commencement of the employment relationship, even if the employee's physical presence in the country or the issuance of the residence visa occurs later.

The calculation of EOSB should be based on the official start date as stamped by MOHRE, as this is the date recognized by UAE labor law.

It is mandatory to provide a written notice of termination to an employee, even if the contract is not being renewed.

This notice period is typically specified in the employment contract and is usually one month.

If you need further clarification, you may ask us.

29 Oct 2024, 14:35

Thank you very much!

That is all I need to know.

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Ibrahim Al Banna Advocates & Legal Consultants
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29 Oct 2024, 15:08

Dear Questioner,

Thank you for reaching out with your questions regarding employment dates and termination notices.

In the UAE, the official start date for employees is generally considered to be the date stamped by the Ministry of Human Resources and Emiratisation (MOHRE) on the employment contract.

This date is used as the basis for calculating the end-of-service benefits.

Regarding your second question, it is indeed mandatory to provide a written notice of termination to employees when their contracts end, especially if the company does not intend to renew the contract.

Providing such notice is essential to ensure compliance with the labor laws and to maintain transparency in your employment practices.

If you need further clarification or assistance with this matter, please feel free to reach out to me directly. I’d be happy to discuss how I can help you navigate these legal requirements.

You can contact me via WhatsApp, phone, or email at [-----------].

Best regards,

Suhail Rana

29 Oct 2024, 15:26

Thank you for your response!

I really appreciate it.

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London Center for Legal Consultancy Office
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29 Oct 2024, 17:48

Greetings,

The date of calculating the end of service allowance is the actual date the worker starts work, and the worker must be notified more than a month before the contract expiration date of the desire not to renew the contract.

You can send us your work contracts on WhatsApp to get accurate answers.

We are honored to provide you with legal support.

For further inquiries about your topic, you can come to our office or contact us via phone, WhatsApp, or email.

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KHE Legal Consultancy
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30 Oct 2024, 04:40

Hello,

The official employment start date is typically considered the date on which the employment contract is signed and stamped by the Ministry of Human Resources and Emiratisation (MOHRE).

This date indicates the commencement of the employment relationship from a legal perspective, even if the residence visa process might be completed at a slightly later date.

As for calculating end-of-service benefits, MOHRE guidelines usually follow the contract start date for this purpose.

A notice period is generally governed by the terms of the original contract and UAE labor law, so you have to verify if your contract includes any specific notice requirements for non-renewal.

For further assistance, kindly share your WhatsApp number.

Laila Hamza Al Mulla Advocates and Legal Consultants
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30 Oct 2024, 04:46

Hi,

The date on which the MOHRE contract was signed is considered the official job start date. Other job-related calculations shall also be based on the MOHRE contract date.

If you need further clarification, kindly share your WhatsApp number.

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Al Hajeya Alnoobi Advocates and Legal Consultants
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30 Oct 2024, 05:36

Dear Questioner,

The determination of the official start date of employment is generally based on the actual commencement of work.

However, the date on the employment contract stamped by the Ministry of Human Resources and Emiratisation (MOHRE) is typically considered the default start date unless either party provides evidence to the contrary.

According to Article 51(2) of Federal Decree-Law No. 33 of 2021 concerning the Regulation of Labour Relations:

An expatriate worker who works full-time and has completed one or more years of continuous service is entitled to an end-of-service gratuity at the end of their service, calculated based on basic wage as follows:

(a) Twenty-one (21) days' wage for each year of the first five years of service;

(b) Thirty (30) days' wage for each year beyond that.

Further, Article 51(3) clarifies that:

The expatriate worker is entitled to a gratuity for fractions of a year in proportion to the time spent in service, provided that they have completed at least one year of continuous service.

Therefore, the start date for calculating the end-of-service benefit is generally the date the employment began as documented by MOHRE, unless additional proof establishes an alternative commencement date.

Regarding your question on termination notice requirements, under Article 42 of the same decree:

The employment contract shall terminate in any of the following cases:

(1) By mutual written agreement of the parties;

(2) Upon expiry of the specified term of the contract, unless renewed or extended per the provisions of this Decree-Law;

(3) Upon the desire of either party, provided the party complies with the provisions regarding termination of employment contracts and adheres to the notice period agreed upon in the contract.

Additionally, Article 43 of the UAE Labour Law mandates:

Either party may terminate the employment contract for any legitimate reason, provided they give the other party written notice and comply with the notice period stipulated in the contract, which shall not be less than thirty (30) days and not exceed ninety (90) days.

Thus, if the company does not intend to renew an employee's contract, it is legally required to provide at least thirty days’ notice before the contract’s expiration date.

Should you have further questions or require additional clarification, please feel free to reach out.

30 Oct 2024, 06:50

Thank you very much for your detailed response!

RAALC Law Firm
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30 Oct 2024, 06:50

Dear Questioner,

Welcome to RAALC Law Firm!

Here's a breakdown of your questions regarding employee start dates, end-of-service calculations, and termination notices in the UAE:

1. Official Start Date:

The official start date for an employee is typically the date stamped by MOHRE on the labor contract. This date is used by most companies and is considered the start for calculating employment duration, especially in matters relating to End-of-Service Benefits (EOSB).

Although the residence visa issue date may be different, it generally does not replace the MOHRE-stamped contract date for calculating employment terms and benefits.

2. End-of-Service Benefit Calculation:

You should start calculating EOSB from the date stamped by MOHRE on the contract. This is considered the start of employment under UAE Labor Law for benefit purposes.

3. Written Notice for Termination After Contract Ends:

If the employment contract has a fixed end date and you do not intend to renew it, a written notice is generally advisable but not mandatory under UAE law for fixed-term contracts that reach their natural end.

However, providing a notice of non-renewal is a best practice to clarify intentions, avoid misunderstandings, and ensure a smooth transition.

If the employee continues working past the contract end date without renewal, it may be treated as an implied renewal, which would require proper notice for termination.

To better understand your needs and provide you with tailored advice, could you kindly share your contact details?

If you'd like, we can also schedule a phone call or a meeting to discuss your matter in more detail at a time that works best for you.

Please let me know your availability, and I’ll be happy to arrange a convenient appointment.

Looking forward to assisting you!

Best regards,

Maideid Almansoori Legal and Consulting
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30 Oct 2024, 07:30

Hi,

Good morning!

The date stamped by MOHRE on the employment contract is considered the official start date for employees in the UAE.

This date is used for various purposes, including calculating the duration of employment, determining eligibility for benefits, and calculating end-of-service benefits (EOSB).

Yes, it is mandatory to provide a written notice of termination to employees, even if the contract is not being renewed.

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