UAE MoHRE: Nine Cases Where Your Employer Can Terminate Your Contract
UAE MoHRE: Nine Cases Where Your Employer Can Terminate Your Contract. In the ever-evolving landscape of the United Arab Emirates’ labor market, ensuring transparency, fairness, and legal protection in employment relationships is a core priority. The Ministry of Human Resources and Emiratisation (MoHRE Enquiry) continues to enhance labour regulations to align with national development goals and foster a balanced relationship between employers and employees. In its latest update, the UAE MoHRE outlines nine specific cases under which a private sector employment contract may be lawfully terminated, along with six distinct employment categories.
This comprehensive legal framework not only secures workers’ rights but also supports employers in managing their workforce effectively amid economic fluctuations or operational shifts. Below, we explore in detail the grounds for termination, employment types, and how MoHRE policies contribute to a stable and competitive labour market.
Nine Legal Reasons Your Employer Can Terminate Your Contract
To promote transparency and mutual understanding, MoHRE clearly lists nine lawful scenarios for contract (MOHRE Contract) termination between an employer and an employee. Each scenario is governed by legislation that ensures fairness and clarity for both parties involved in the employment relationship.
1. Contract Expiry Without Renewal
The most straightforward reason for contract termination is the expiration of the employment contract without extension or renewal. If no new agreement is signed or renewal initiated, the contract naturally concludes.
2. Mutual Agreement
A mutual decision in writing by both employer and employee can end the contract amicably. This clause offers a consensual way out of the employment relationship.
3. Termination by Either Party with Notice
Either the employer or the employee may unilaterally terminate the employment contract, provided that:
- The notice period mentioned in the contract is observed.
- The termination aligns with the UAE Labour Law.
This mechanism ensures neither party is caught off-guard and has time to plan accordingly.
4. Employer Death
If the employer passes away and their identity or involvement is central to the contract, it may be terminated accordingly.
5. Employee’s Death or Disability
The contract may end upon the employee’s death or if they are permanently and completely unable to work, as confirmed by a medical authority.
6. Imprisonment for Over Three Months
If the employee receives a final court judgment sentencing them to a prison term of at least three months, their employment may be legally terminated.
7. Permanent Closure of Business
In cases where a business is permanently shut down in compliance with UAE legislation, contracts with employees may also end.
8. Employer’s Bankruptcy or Economic Constraints
The employment contract can be terminated if the employer goes bankrupt, becomes insolvent, or is impacted by exceptional circumstances that make it impossible to continue the business operations.
9. Work Permit Renewal Failure
If an employee fails to meet the conditions for renewing their work permit, and the cause is beyond the employer’s control, the contract can be terminated accordingly.
Grounds for Termination of Employment Contract
| No. | Termination Reason | Explanation |
|---|---|---|
| 1 | Expiry of Contract | Contract ends without renewal. |
| 2 | Mutual Agreement | Both parties agree in writing to end the contract. |
| 3 | Unilateral Termination | Either party gives proper notice as per law. |
| 4 | Employer’s Death | Contract ends if employer is essential to its fulfillment. |
| 5 | Employee’s Death/Disability | Valid medical certificate required for termination. |
| 6 | Final Court Judgment (3+ months imprisonment) | Employment ends upon confirmed legal judgment. |
| 7 | Business Closure | Permanent and legal closure of the establishment. |
| 8 | Bankruptcy or Exceptional Economic Reasons | Employer unable to sustain business operations. |
| 9 | Failure to Renew Work Permit | Employee unable to renew permit due to factors beyond employer’s control. |
Additional Termination Guidelines
In all the above-mentioned cases, employers and employees must adhere to the procedures outlined in the executive regulations and applicable national legislation. The aim is to provide both parties with clarity and reduce the risk of unlawful dismissals or disputes.
The Ministry also urges employers to maintain proper documentation during termination procedures to ensure compliance with UAE labour laws.
Six Legal Employment Categories in UAE
To enhance flexibility and accommodate the diverse needs of the workforce, UAE Labour Law permits six recognized categories of employment contracts. These categories ensure that individuals can work in arrangements that suit their lifestyle, profession, or employer’s operational model.
Full-Time Employment
Employees work exclusively for one employer, completing the full number of daily and weekly working hours as stipulated in the contract. This is the traditional model of employment.
Part-Time Employment
Under this model, employees may work for one or more employers but for a limited number of hours or specific days. It supports those seeking reduced workloads or balancing multiple jobs.
Temporary Employment
Temporary jobs are typically project-based or time-bound. Once the specific task or pre-defined duration ends, the employment concludes. This is ideal for seasonal work or one-off assignments.
Flexible Employment
This category enables variable work schedules, allowing employees to work hours that fluctuate based on the employer’s needs. It supports work-life balance and allows employers to scale staffing levels efficiently.
Remote Work
Remote employment permits employees to perform duties from a location outside the traditional office space. It may be structured as either full-time or part-time, depending on the agreement.
Job Sharing
This model involves two or more people sharing responsibilities for a single job. Each employee receives a proportionate salary and benefits, and the agreement is treated similarly to part-time employment.
Categories of Employment Contracts in UAE
| Contract Type | Key Characteristics |
|---|---|
| Full-Time | One employer, full weekly hours. |
| Part-Time | One/more employers, limited hours. |
| Temporary | Specific task or time-bound jobs. |
| Flexible | Variable schedule based on workload. |
| Remote Work | Duties performed off-site, either fully or partially. |
| Job Sharing | Two or more employees share job responsibilities with proportional benefits. |
MoHRE Role in Enhancing the UAE Labour Market
The UAE Ministry of Human Resources and Emiratisation plays a vital role in shaping a flexible, attractive, and competitive labour market. Through legal reforms and clear employment structures, MoHRE seeks to:
- Protect the rights of workers and employers
- Ensure fair treatment and conflict resolution
- Promote economic sustainability and adaptability
- Attract global talent by enhancing transparency and flexibility
MoHRE employment policies are designed not only for routine operations but also to adapt in exceptional circumstances, such as pandemics, financial crises, or geopolitical challenges. This commitment to labour market resilience positions the UAE as a leading destination for professionals and investors.
Conclusion
Understanding the legal grounds for contract termination in UAE and the available employment categories helps both employees and employers operate confidently within the law. By clearly defining the nine scenarios where a contract may be ended and offering six types of employment arrangements, MoHRE reinforces a balanced, future-ready workforce strategy.
