UAE labour law clarifies employee rights regarding dismissals during leave

UAE labour authorities have reiterated statutory regulations governing the dismissal of private sector staff during authorized leaves, according to Emirates 24|7. The provisions fall under Federal Decree-Law No. 33 of 2021 on the regulation of employment relationships.

Under Article 35 of the law, which governs the validity of notice periods in case of contract termination during leave, employers cannot enforce contract termination while an employee is on statutory or annual leave. If a termination notice is issued, the mandatory statutory notice period commences only after the employee returns to active duty.

Employers are required to settle all financial dues upon contract termination. These obligations include payment for accrued leave, work permit cancellation expenses, and statutory end-of-service benefits.