08 Feb 2022

New UAE Labour Law: More burning questions


UAE Labour Law – February 2022

Following on from our podcast on the top 50 changes brought in by the new UAE Labour Law, we bring you the third part of our mini-series of the burning questions that employers are facing with the new law now in force.

In this third alert, we’ve focused on questions related to termination of employment.

  1. Can employers still terminate without notice during probation?
  2. How do employers calculate holiday pay on termination?
  3. Should we calculate end-of-service gratuity using working days or calendar days?
  4. How do employers calculate end-of-service gratuity for employees on unlimited term contracts?
  5. Should we make all of our non-competes two-years long? ?
  6. How do we reclaim recruitment costs if an employee resigns during probation?
  7. Is redundancy an arbitrary dismissal?
  8. Is permission still required before dismissing UAE nationals?
  9. Do we have to follow a pre-dismissal process for all employees?
  10. Do we still have to pay early termination compensation when ending limited term contracts?

To view the other questions related to the UAE Labour Law

To view other burning questions that we have raised in our mini-series, please see below for those related focusing on questions related to:

  • working time and arrangements – click here to view; and
  • terms and conditions of employment that may require updates – click here to view.

Get in touch

If you would like help answering or discussing any of the questions covered in this alert, or have any other employment-related issues, please contact Kiersten Lucas, Emily Aryeetey or Laura Anderson in our employment, pensions and incentives team, or your usual contact at Stephenson Harwood Middle East.



Emily Aryeetey

Emily Aryeetey

T:  +971 4 407 3942 M:  Email Emily | Vcard Office:  Dubai

Kiersten Lucas

Kiersten Lucas

T:  +971 4 407 3993 M:  +971 52 577 7731 Email Kiersten | Vcard Office:  Dubai

Laura Anderson

Laura Anderson
Managing associate

T:  +44 20 7809 2339 M:  +44 7721 637 047 Email Laura | Vcard Office:  London