Renewal of Residential & Commercial Leases in ADGM(Real Property Regulations 2024)
February 9, 2026
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ME-ALLIANCE LEGAL UPDATE
Termination of Employment Contract –
ADGM Employment Regulations 2024
Part 11 of the ADGM Employment Regulations 2024 defines the rights and obligations of both employers and employees concerning the termination of employment. It encompasses provisions on notice periods, termination for cause, end-of-service gratuity, and repatriation entitlements, aiming to ensure fairness and clarity in employment relationships within the Abu Dhabi Global Market.
1. Rights of Employer and Employee to Minimum Notice of Termination:
• Notice Periods:
i. Less than 3 months of service: 7 calendar days.
ii. 3 months or more of service: 30 calendar days.
• Written Agreement: Parties may agree to a longer notice period.
• Payment in Lieu: Requires written consent from the employee.
• Employer’s Discretion: Employers may require employees to refrain from attending work during the notice period.
• Exceptions: This section does not apply if employment is terminated for cause, during the probationary period, or upon the expiry of a fixed-term contract.
• Non-Compliance Penalty: Employers failing to adhere to the notice requirements must compensate the employee with the equivalent of wages and benefits for the unobserved notice period.
2. Termination for Cause:
• Immediate Termination: Either party may terminate employment immediately for cause, provided the conduct justifies such action.
• Employee’s Entitlement: Employees terminating for cause are entitled to wages and benefits for the notice period.
3. Right to Written Statement of Reasons for Termination:
• Employee’s Request: Upon written request, employers must provide a statement detailing the reasons for termination within 21 calendar days.
• Penalty for Non-Compliance: Failure to provide the statement may result in a level 2 fine on the Standard Fines Scale.
4. Right to an Employment Reference:
• Employee’s Request: Upon written request, employers must provide an employment reference within 21 calendar days.
• Reference Contents:
i. Employer and employee names.
ii. Employment commencement and termination dates.
iii. Job title at termination.
iv. Wages at termination, if requested.
• Penalty for Non-Compliance: Failure to provide the reference may result in a level 2 fine on the Standard Fines Scale.
5. Pension for UAE and GCC Nationals:
• Mandatory Enrollment: Employers must enroll UAE and GCC national employees in the relevant UAE federal pension scheme within 30 calendar days of employment commencement.
• Alternative to Gratuity: Employees enrolled in the pension scheme are not entitled to end-of-service gratuity unless they have written approval from the applicable pension authority to opt out.
6. End of Service Gratuity:
• Eligibility: Employees completing one year or more of continuous service are entitled to end-of-service gratuity.
• Calculation:
i. 21 days’ basic wage for each of the first five years.
ii. 30 days’ basic wage for each additional year.
iii. The total gratuity shall not exceed the wages of two years of service.
• Basic Wage Definition: Excludes allowances, bonuses, and overtime; calculated based on the basic wage at the termination date.
• Deductions: Employers may deduct amounts owed by the employee from the gratuity.
• Pension or Savings Scheme Option: Employers may offer employees the option to participate in a pension or savings scheme instead of receiving gratuity, provided the employee consents in writing.
7. Repatriation Flight:
• Employer’s Obligation: Within 30 calendar days of termination, employers must provide a one-way repatriation flight to the employee’s country of origin or another agreed destination.
• Exceptions:
i. Employee is a remote worker not residing or working in the UAE.
ii. Employee secures alternative employment or visa sponsorship in the UAE within 30 days of work permit cancellation.
iii. Employee is terminated for cause.
• Reimbursement Option: Employers may either book the flight directly or reimburse the employee for the cost incurred.
ADGM Employment Regulations 2024
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