Question: I recently joined a company in mainland Dubai as a sales executive, but it was shut down within three months — before I could complete my probation period. Can I claim compensation since I was not informed about the closure? Am I entitled to any end-of-service benefits even though I have not completed one year of employment? Please advise.
Answer: Pursuant to your query, it is assumed that your employer terminated your employment during probation without serving the stipulated notice period.
In the UAE, an employer may terminate an employee during the probation period by serving 14 days of written notice under Article 9 (1) of the Federal Decree-Law No. 33 of 2021 Regarding the Regulation of Employment Relationships, which states:
“The employer may appoint an employee under a probationary period not exceeding six months from the date of commencement of work. The employer may terminate the service of an employee during this period after notifying the latter of the same in writing 14) days at least before the date specified for the termination of service.”
Furthermore, an employee is entitled to end-of-service benefits (gratuity) only upon completing at least one year of continuous service with the employer. This is in accordance with Article 51(2) of the Employment Law, which states:
“The full-time foreign employee, who completed a year or more in continuous service, shall be entitled to end-of-service benefits at the end of his service, calculated according to the basic salary as per the following:
- a. A salary of 21 twenty-one days for each year of the first five years of service;
- b. A salary of 30 days for each year exceeding such period.”
Therefore, if your employment was terminated before completing one year, you are not entitled to end-of-service gratuity.
However, your employer remains obligated to pay all dues earned up to the last working day, including unpaid salary, any accrued days of leave (if applicable), and the notice period salary for termination without serving the stipulated notice period.
In accordance with the aforementioned provisions of the law, you may claim your unpaid salary, any eligible leave balance, and the salary for the statutory 14-day notice period. You may file a complaint with the Ministry of Human Resources and Emiratisation (MoHRE) if your employer has not settled your salary and other entitlements.