Table of Contents
- Can an Employer Terminate You While You Are on Leave in the UAE?
- When Does the Notice Period Start If You Are Terminated on Leave?
- Can the Employer Ask You to Return From Leave to Serve Notice?
- Does It Matter What Type of Leave You Are On?
- Does an Employer Need a Reason to Terminate You While You Are on Leave?
- Is Termination During Leave Automatically Considered Arbitrary Dismissal?
- What If the Employer Terminates You With Immediate Effect?
- What Are You Entitled to After Termination During Leave?
- What Should You Do If You Receive a Termination Notice While on Leave?
- Does This Rule Apply to Every Employee in the UAE?
- Frequently Asked Questions
- Conclusion
You are on approved leave when an email or call arrives saying your employment has been terminated. Can an employer do that in the UAE, and does the notice period start immediately?
If you are terminated while on leave, being away from work does not automatically make the termination invalid. However, UAE Labour Law contains an important rule about when the notice period starts. There are also additional protections where the absence involves sick leave, pregnancy, or maternity leave.
For most private-sector employment relationships governed by Federal Decree-Law No. 33 of 2021, the reason for termination, the type of leave, the notice given, and the employee’s final entitlements all need to be considered separately.
Can an Employer Terminate You While You Are on Leave in the UAE?
In some circumstances, yes.
Article 35 of the UAE Labour Law specifically deals with termination while a worker is on leave. It provides that if either party wishes to terminate the employment contract during the worker’s leave, the agreed notice period does not begin while the employee is away.
Instead, unless the employer and employee agree otherwise, the notice period begins from the day following the employee’s scheduled return from leave.
This means there are two separate questions:
- Can the termination decision be communicated while you are away?
- When does the contractual notice period actually begin?
For ordinary approved leave, receiving a termination notice while away does not necessarily mean the notice period is already running.
Where there is uncertainty over the reason for termination, notice pay, or other employment rights, the position should be assessed under the wider framework of UAE labour and employment law.
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When Does the Notice Period Start If You Are Terminated on Leave?
Article 35 is particularly important here.
If termination takes place while the employee is on leave, the notice period agreed in the employment contract generally starts from the day following the employee’s scheduled return from leave, unless both parties agree to a different arrangement.
So an employer should not simply count approved leave days as part of the contractual notice period where Article 35 applies.
For example, suppose an employee is on approved annual leave when the company sends a termination notice. The employee has a contractual notice period of 30 days. Unless another arrangement is agreed, those 30 days do not simply run alongside the remaining annual leave.
The starting point is determined by the rule in Article 35.
Once the notice period begins, Article 43 generally requires the contractual notice period to be between 30 and 90 days. The employment contract remains in force during that period, and the employee is entitled to full wage based on the last wage received.
Can the Employer Ask You to Return From Leave to Serve Notice?
The existence of a termination notice does not automatically cancel approved leave.
The employer and employee may agree on a different arrangement concerning the notice period, but the law specifically provides a default rule where termination occurs during leave.
This is why the exact dates matter. Keep records showing:
- when your leave was approved;
- the approved leave period;
- your scheduled return date;
- when the termination notice was sent;
- the notice period stated in your employment contract; and
- whether you subsequently agreed to any different arrangement.
A dispute can arise simply because the employer and employee calculate the notice period from different dates.
A separate issue arises where annual leave is requested after notice has already started. Our guide on annual leave during a notice period explains that situation separately.
Does It Matter What Type of Leave You Are On?
Yes. The type of leave can materially change the legal position.
Annual Leave
For an employee who receives termination while on approved annual leave, Article 35 is particularly relevant to the commencement of the notice period.
The fact that the employee happens to be on annual leave does not, by itself, create a general prohibition against termination. However, the employer still needs to comply with the applicable termination and notice requirements.
Sick Leave
Sick leave requires greater care.
Official UAE Government guidance states that an employer may not dismiss an employee or give a termination notice while the employee is on sick leave.
Article 46 of the Labour Law also provides that an employer may not terminate a worker’s service because of lack of health fitness before the worker has used the leave legally available to them.
Once the legally available sick-leave entitlement has been exhausted and the employee remains unable to return to work, the position may be different.
Pregnancy and Maternity Leave
Article 30 provides specific protection for female employees. Employment may not be terminated, or termination notice given, because of pregnancy, taking maternity leave, or absence permitted under the maternity-leave provisions.
The reason for dismissal therefore matters. Pregnancy or the lawful use of maternity leave cannot itself be used as the basis for termination.
Other Approved Leave
Employees may also be entitled to parental leave, bereavement leave, study leave, and other forms of leave where the statutory conditions are met.
The general termination-during-leave rule should be distinguished from any special protection that applies to the particular type of leave. A summary of the different types of leave available in the UAE can help identify which rules apply first.
Does an Employer Need a Reason to Terminate You While You Are on Leave?
Article 43 permits either party to terminate an employment contract for a legitimate reason, subject to written notification and compliance with the applicable notice period.
Being on leave does not give an employer permission to use an unlawful reason for termination.
It is therefore useful to distinguish ordinary termination with notice from dismissal without notice.
Under an ordinary termination, the contract and applicable notice requirements must be followed. The circumstances should also fit within the UAE Labour Law framework governing termination of employment.
Dismissal without notice is different. Article 44 limits this to specified cases, such as serious misconduct, forged documents, serious safety breaches, certain unauthorised absences, or other conduct specifically covered by the law.
For dismissal under Article 44, the employer must also follow the required procedure, including a written investigation and a written, reasoned dismissal decision.
An employer should therefore not treat the fact that an employee is away from the workplace as a shortcut around the normal termination rules.
Is Termination During Leave Automatically Considered Arbitrary Dismissal?
No.
This is an important distinction because “arbitrary dismissal” has a narrower meaning under the current UAE Labour Law than simply feeling that a dismissal was unfair.
Article 47 provides that termination is unlawful where the employee is dismissed because they submitted a serious complaint to MOHRE or brought a case against the employer and the validity of that complaint or case is established.
So being terminated during annual leave does not, by itself, prove arbitrary dismissal.
The reason becomes particularly important where the leave period coincides with an existing complaint, labour dispute, or legal proceedings against the employer.
Employees in that situation may need to consider when termination can amount to arbitrary dismissal under UAE Labour Law rather than relying only on the timing of the dismissal.
If the facts indicate that the termination may have been retaliatory, the issue can extend beyond notice-period calculations into a possible arbitrary dismissal claim.
What If the Employer Terminates You With Immediate Effect?
A company may tell an employee that employment ends immediately even though the contract provides for notice.
That does not necessarily mean the employee loses the financial value of the notice period.
Article 43 provides for notice-period compensation where a party fails to comply with the required notice. The allowance generally corresponds to the worker’s wage for the full notice period, or the remaining part of it.
That is different from an Article 44 dismissal without notice, which must fall within one of the statutory grounds and satisfy the required procedure.
Employees should therefore check whether the termination letter says:
- the employee will work the notice period;
- the employer is releasing the employee from work but preserving notice rights;
- notice pay will be provided instead; or
- the employee is being dismissed without notice for an alleged Article 44 reason.
Those situations can have very different consequences.
What Are You Entitled to After Termination During Leave?
Termination while on leave does not automatically remove accrued employment entitlements.
Depending on the circumstances and length of service, the employee may need to check:
- salary outstanding up to the termination date;
- notice-period salary or notice allowance;
- payment for unused accrued annual leave;
- end-of-service gratuity where the eligibility conditions are met;
- contractual commissions or other amounts already earned; and
- any other entitlement due under the employment contract or UAE Labour Law.
Where an employee leaves employment without using accrued annual leave, the applicable unused leave entitlement is generally settled on the basis prescribed by the Labour Law.
Article 53 also requires the employer to pay the worker’s wages and other employment entitlements within 14 days from the end of the employment contract.
What Should You Do If You Receive a Termination Notice While on Leave?
Do not focus only on the date written at the top of the termination letter.
Check the entire sequence of events.
- Keep proof of the approved leave. Save the approval email, HR-system record, or other evidence showing the dates.
- Check your scheduled return date. This can be important when determining when the notice period starts under Article 35.
- Review your employment contract. Confirm the contractual notice period and any relevant termination provisions.
- Read the stated reason carefully. Determine whether the company is giving ordinary notice or alleging grounds for dismissal without notice.
- Keep all communications. Save emails, WhatsApp messages, HR correspondence, warning letters, and the termination notice.
- Calculate the final settlement separately. Do not assume that termination while on leave removes notice pay, accrued leave, or other amounts that may remain due.
If there is a disagreement over the effective termination date, notice period, reason for dismissal or final settlement, the employee can raise the employment dispute through the appropriate MOHRE process where the federal private-sector labour regime applies.
Does This Rule Apply to Every Employee in the UAE?
No.
This article concerns employees governed by the federal UAE private-sector Labour Law.
Different employment regimes can apply to government employees and to employees working in jurisdictions with their own employment legislation, particularly the Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM).
Before relying on the federal Labour Law provisions, confirm which employment regime governs your contract.
Frequently Asked Questions
Can my employer fire me while I am on annual leave in the UAE?
A termination may be communicated while an employee is on annual leave, but Article 35 affects when the contractual notice period begins. Unless otherwise agreed, the notice period starts after the employee’s scheduled return from leave.
Does my notice period run while I am on leave?
Where termination occurs during leave, Article 35 provides that the agreed notice period does not begin until the day following the employee’s scheduled return from leave, unless both parties agree otherwise.
Can I be terminated while I am on sick leave?
Official UAE Government guidance states that an employer may not dismiss an employee or give termination notice while the employee is on sick leave. The Labour Law also restricts termination for medical unfitness before legally available leave has been used.
Can I be dismissed because I am on maternity leave?
No. UAE Labour Law prohibits termination or notice because of pregnancy, maternity leave, or absence permitted under the maternity-leave provisions.
Is being fired during annual leave automatically arbitrary dismissal?
No. Under Article 47, arbitrary or unlawful termination is specifically linked to dismissal because of a serious MOHRE complaint or a valid lawsuit against the employer. The reason and evidence must be assessed.
What happens to unused annual leave if I am terminated?
Accrued annual leave does not simply disappear when employment ends. The employee may be entitled to payment for unused leave in accordance with the UAE Labour Law.
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Conclusion
Being on approved leave does not automatically prevent an employment contract from being terminated, but it can change when the notice period takes effect. Under Article 35, notice generally does not begin while the employee is away and instead starts after the scheduled return from leave, unless another arrangement is agreed.
The type of leave also matters. Sick leave, pregnancy, and maternity leave involve additional protections, while the reason for termination determines whether ordinary notice rules, dismissal-without-notice provisions, or unlawful-termination rules may apply.
If the dates, reason for termination, or final settlement are disputed, HHS Lawyers can review the employment contract, leave record, and termination documents against the applicable UAE labour-law requirements.
