If an employee is terminated due to poor performance, is he eligible for compensation?

Greetings,

In the private sector, if an employee is terminated due to poor performance and proper warning procedures have been followed, the employer may have the right to terminate without compensation, provided it falls under Article 44 of the UAE Labour Law (termination for valid reason).

However, entitlement to notice period salary or other dues depends on the specific details of the case, including contract type, documentation, and procedure followed.

To evaluate your exact rights and whether compensation is due, we recommend booking a consultation or authorizing us to represent you.

Dear Client,

Under UAE labor law, an employee terminated due to poor performance following the issuance of warning letters is generally not entitled to one month of compensation salary unless specific conditions are met.

Below is a professional explanation:

1. Eligibility for Compensation:

As per Federal Decree-Law No. 33 of 2021, the following factors determine compensation eligibility:

- Notice Period Compensation: If the employer terminates the employee without serving the required notice period (typically 30 days), the employee is entitled to compensation equivalent to the salary for the notice period or the remainder thereof.

- Unlawful Termination: Compensation of up to three months' salary is only applicable if the termination is deemed unlawful or arbitrary, such as when an employee is dismissed for filing a legitimate complaint with MOHRE or pursuing legal action against the employer.

In cases of poor performance, provided that proper warning letters were issued and due process was followed, termination is unlikely to be considered arbitrary or unlawful. Therefore, compensation beyond the notice period dues may not apply.

2. Warning Letters and Termination Process:

UAE labor law requires employers to follow a fair and transparent process when terminating employees for poor performance. This includes:

- Issuing structured warning letters (typically three) outlining performance issues and providing opportunities for improvement.

- Documenting all warnings and actions taken to support termination.

If these steps were followed, the employer would have fulfilled their obligations under the law, and additional compensation may not have been required.

3. Steps You Can Take:

If you believe your termination was unfair or improper:

a. File a Complaint with MOHRE: You can raise a dispute with the Ministry of Human Resources and Emiratisation (MOHRE) if you suspect wrongful termination.

b. Seek Legal Advice: Consult with a labor lawyer to review your case and determine whether you are eligible for compensation under Article 47 of the UAE Labor Law.

In summary, an employee terminated due to documented poor performance following warning letters is not automatically entitled to one-month compensation salary unless there was a breach of notice period requirements or evidence of unlawful dismissal.

If you need further clarification or legal assistance, feel free to reach out.

Sincerely,

Dear Inquirer,

We are pleased to serve you and address your inquiries.

The provisions of the Labor Law are clear and specify the cases in which an employer may dismiss an employee without notice after conducting a written investigation with the employee.

The dismissal decision must be written and reasoned, and delivered by the employer or their representative to the employee in any of the following cases:

1. It is proven that the employee has impersonated someone else or submitted forged certificates or documents.

2. The employee has committed an error resulting in significant financial loss to the employer, or the employee has intentionally damaged the employer's property and acknowledged this, provided that the latter notifies the Ministry of the incident within (7) seven working days from the time they become aware of the incident.

3. The employee has violated the establishment's internal regulations regarding safety at work, workers, or the workplace, provided that these regulations are written and posted in a conspicuous place, and that the employee is aware of them.

4. The employee has failed to perform their basic duties under the employment contract, and their continued violation continues despite a written investigation into the matter, and they have been warned twice of termination if they repeat the violation.

5. The employee's disclosure of a business secret related to industrial or intellectual property, resulting in losses to the employer, a lost opportunity, or a personal benefit to the employee.

6. The employee is intoxicated during work hours, or under the influence of a narcotic or psychotropic substance, or commits an act that violates public morals in the workplace.

7. The employee's verbal or physical assault of the employer, the responsible manager, one of the employee's superiors, or his/her colleagues during work, or any form of assault punishable under applicable state legislation.

8. The employee's absence without a legitimate reason or excuse acceptable to the employer for more than (20) twenty intermittent days within a single year, or for more than (7) seven consecutive days.

9. The employee's unlawful exploitation of his/her job position to obtain personal results and gains.

10. The employee's employment with another establishment without adhering to the established controls and procedures in this regard.

Kindly contact us via email or call our offices in Dubai at [-----------] or Sharjah at [-----------].

Hello,

According to UAE law, if an employee is terminated due to poor performance and official warning letters have been issued, they are generally not entitled to a one-month compensation salary unless specified in the contract.

However, if there are other circumstances or violations by the employer, the employee may have other rights.

Our legal center specializes in such cases, and you can contact us via WhatsApp for further legal assistance.