Termination of Employment Contracts

Overview

  • This Practice Note covers termination of employment in the DIFC and sets out the key ways in which DIFC employees may be lawfully terminated in accordance with the DIFC Employment Law.

  • This Practice Note considers the DIFC jurisdiction only and does not discuss the UAE onshore jurisdiction or other designated freezone areas outside the UAE onshore jurisdiction.

Definitions

  • DIFC: Dubai International Financial Centre.

  • DIFC Employment Law: DIFC Law No. 2/2019

Practical Guidance

Applicable law

The principal legislation governing the employment relationship is DIFC Law No. 2/2019 (the DIFC Employment Law), which came into force on 28 August 2019, and repealed and replaced DIFC Law No. 4/2005 and DIFC Law No. 3/2012.

The DIFC Employment Law applies to employees of an establishment having a place of business within the DIFC and to employees of regulatory agencies within the DIFC, and to employees based within, or ordinarily working within or from the DIFC.

Limited term contracts