Termination Letter (UAE): Sample Notice and Legal Rules

A termination letter is the written notice an employer gives when it ends an employee’s contract. In the UAE the Labour Law requires the notice to be in writing, sets the notice period between 30 and 90 days, and fixes what the employee must be paid and by when. This page explains when an employer may terminate, how the notice period works, what the final settlement must include, and what a termination letter should say, with an editable sample in Word and PDF. Every rule was checked against Federal Decree-Law No. 33 of 2021 and the UAE Government Portal on 27 September 2026, and applies to mainland employers; DIFC and ADGM have their own employment laws.

When a UAE employer can terminate a contract

Article 42 of the Labour Law lists the ways a contract ends. For an employer the practical routes are:

• By agreement: both parties agree in writing to end it.
• At the end of the term: the fixed term expires and the contract is not extended or renewed.
• With notice: either party ends it for a legitimate reason, in writing, with the notice period in the contract.
• During probation: with at least 14 days’ written notice.
• Without notice: only in the cases listed in Article 44, for serious misconduct.

The notice period

Article 43 sets the rules that apply once notice is given:

• The notice must be in writing, and the period is the one in the contract, not less than 30 days and not more than 90 days. It must be the same for both sides unless a longer period favours the employee.
• The contract stays in force during the notice period. The employee receives the full wage, based on the last wage, and must work if the employer asks.
• The parties can agree to waive or shorten the notice, but the employee keeps the rights attached to the notice period in the contract.
• The side that does not respect the notice pays the other a notice allowance equal to the wage for the whole period or the part not served, even if there was no harm.
• When the employer terminates, the employee may be absent one unpaid working day a week during the notice period to look for another job, telling the employer at least three days in advance.

Dismissal without notice

Article 44 lets an employer dismiss without notice only in the cases it lists, and only after a written investigation with the employee. The decision must be in writing, give the reasons, and be handed to the employee. The ten cases, in short: false identity or forged documents; a mistake causing grave material loss, or deliberate damage the worker admits, reported to MOHRE within 7 business days; breach of posted safety instructions; failing basic duties despite a written investigation and two warnings of dismissal; disclosing work secrets; being drunk or under drugs at work, or an act against public morals there; assaulting the employer, a manager or a colleague at work; absence without a legitimate reason for more than 20 non-consecutive days or more than 7 consecutive days; exploiting the job for personal gain; and joining another establishment without following the rules. A dismissal letter for these cases is different from the notice letter in the template: it records the investigation and the reason, and it should be checked by a lawyer before it is issued.

When termination is unlawful

Article 47 makes a termination unlawful if it is because the employee filed a serious complaint with MOHRE or a lawsuit against the employer that proved valid. A court can then award compensation of up to three months’ last wage, on top of the notice allowance and the gratuity. The law also protects two situations: an employer may not terminate or give notice to a woman because of pregnancy or maternity leave (Article 30), and may not terminate for lack of health fitness before the employee has used the leave the law gives them (Article 46).

What the final settlement must include

Unused annual leave is paid in cash on the basic salary, including the part of the last year, under Article 19 of the Executive Regulation. The employer also pays the employee’s return ticket to where they were recruited from, unless they have joined another employer or the termination was due to them (Article 13). An employee in employer housing has 30 days after the end of service to vacate it. The law contains no rule that reduces the gratuity because of who ended the contract. Amounts due by law or by a court judgment can be deducted. Estimate the figure with our UAE gratuity calculator.

What a termination letter should say

• The date, the employee’s name, ID, job title and the contract or work permit number.
• A clear statement that the contract is being terminated, and the reason.
• The notice period in days, when it starts, and the last working day.
• Whether the employee works the notice period or is paid in lieu.
• What the final settlement will include and that it will be paid within 14 days.
• The return of company property and the handover.
• That the employer will cancel the work permit and the residence visa, and will issue an experience certificate on request.
• A signature by an authorised person and an acknowledgement of receipt by the employee, stating that signing confirms receipt only.

After the letter: permit, visa and certificate

The employer cancels the work permit and the employment contract with MOHRE and the residence visa with the immigration authority. The employer must also give the employee, on request and free of charge, a certificate of service showing the dates of employment, the total service, the job, the last wage and the reason the contract ended. See the experience certificate format.

Common mistakes

• Giving notice verbally or by phone message only. Article 43 requires writing.
• A notice period shorter than 30 days or longer than 90 days.
• Dismissing without notice for a reason that is not in Article 44, or without a written investigation.
• Paying the final settlement late. The deadline is 14 days.
• Leaving the gratuity out, or calculating it on the total salary instead of the basic wage.
• Forgetting to cancel the work permit and the residence visa after the employee leaves.
• Asking the employee to sign away statutory rights in a “full and final settlement”. Article 65 makes any waiver of Labour Law rights void, and labour claims can be brought for two years after the employment ends.

If the employee is the one leaving, see the resignation letter sample. For conduct problems that do not justify ending the contract yet, a warning letter is the usual first step.