Termination of Labour Contracts and Entitled Pay

Overview

This Practice Note discusses the ways in which employment contracts in the DIFC are terminated under DIFC Law No. 2/2019 DIFC Employment Law.
This Practice Note also looks at the entitlements of employees upon their termination, including payment of final dues and gratuity.

Definitions

EOSG: End of service gratuity.

Practical Guidance

Termination of employment contracts

Minimum notice

Article 62(2) of DIFC Law No. 2/2019 specifies the minimum notice requirements that need to be fulfilled when terminating employment contracts which are as follows:

Seven days if the continuous employment is less than three months, including any period of secondment.
30 days if the continuous employment is more than three months but less than five years, including any period of secondment.
90 days if the continuous employment is five years or more, including any period of secondment.

Article 62(2) of DIFC Law No. 2/2019 notice requirements do not apply in the following circumstances:

During any probationary period agreed in the employment contract.
In the case of a fixed term employment contract which will expire at the end of the term.
In respect of termination for excessive sick leave in accordance with article 36(1) of DIFC Law No. 2/2019.