Warning Letters Before Termination in the UAE: Know The Reality

Have you ever faced the possibility of losing your job? Termination can be one of the most challenging phases in an employee’s professional journey. For both employers and employees, understanding the process of employment termination is crucial. The UAE Labour Law provides a clear and structured framework to ensure transparency and fairness during such situations. One of the key components in this process is the issuance of warning Letters Before termination in the UAE, which serve as formal notices to the employee before any final action is taken. These letters play an essential role in giving the employee a chance to improve performance or correct behavior before termination becomes necessary.

This guide will walk you through what warning letters are, how many are typically issued before termination, the legal procedures involved in delivering them, and the best practices to follow throughout the termination process in the UAE. Whether you’re an employer or an employee, this information can help you navigate termination situations with clarity and confidence.

What Are Warning Letters?

Warning letters are formal notifications. It is a form of an alert to an employee about behavioral or performance-related issues. These letters serve as a written reminder of the company’s expectations of not meeting them. Warning letters are a part of the fair process. It gives the employee time to improve before facing termination.

The Role of Warning Letters in the UAE

Issuing warning letters is a critical component of the disciplinary process. They serve as formal notifications to employees regarding performance issues or misconduct and provide an opportunity for improvement. The typical sequence includes:

• First Warning Letter: Addresses initial concerns and outlines expectations for improvement.
• Second Warning Letter: Highlights continued issues and the potential consequences of non-compliance.
• Final Warning Letter: Serves as the last opportunity for the employee. Helping them to rectify their behavior before termination.

Employers must document these warnings, and employees should acknowledge receipt. Failure to follow this procedure may render a subsequent termination unlawful.

Breakdown of Warning Letters:

We also summarize it in a table form for the best understanding

Why Are Warning Letters Important?

Warning letters have their utmost importance. They document performance issues before terminating an employee. Giving employees a fair chance to correct their behavior. Served as a protective shield for the employer legally during termination. Further, these letters maintain transparency between management and staff.

How Many Warning Letters Before Termination in the UAE?

Issuing three warning letters before an employer moves to terminate an employee is standard in the UAE. Mostly, workers are terminated based on reasons like poor performance or misconduct. Exceptions are serious offenses, where immediate termination of employment UAE can happen. These warnings help create a transparent and lawful process.

What Goes Into a Warning Letter Under UAE Labour Law?

Each warning letter should be clear, professional, and specific. Here’s what to include:

• Employee’s full name and designation
• Date of issuance
• Description of the issue or incident
• Relevant evidence or documentation
• Expected improvements and deadlines
• Consequences of further violations
• Signature of both the employee and the supervisor

Step-by-Step Process for Issuing Warning Letters Before Termination in the UAE

Employers must follow a consistent warning process to maintain professionalism and avoid legal risks:

1. Investigate the Problem

Start with an internal review. Speak to the employee’s manager, check records, and gather details. Don’t assume, try to validate.

2. Meet with the Employee

Have a face-to-face discussion. Explain the concerns clearly and allow the employee to respond. This meeting sets the tone and opens dialogue.

3. Document the Incident

Create written records of what happened, what was discussed, and what expectations were shared. Keep these for your HR files.

4. Issue the Warning Letter

Hand over the first letter and ask the employee to sign it. Repeat this process for the second and third warnings, if necessary, at intervals that allow time for correction.

5. Evaluate Progress

After each warning, give the employee a fair window to show improvement. Supervisors should support and monitor performance during this time.

When Is Termination Legal Without Warning?

Although the standard is to issue three warning letters, UAE Labour Law allows immediate termination without notice in certain cases, such as:

• Forging documents or IDs
• Leaking confidential information
• Physical assault at the workplace
• Repeated intoxication on the job
• Absence for more than 7 consecutive days without permission
• Severe negligence caused a major company loss

In such cases, employers still need to document the incident. If required, consult HR or legal teams before acting.

Understanding the Grounds for Termination in the UAE

Employment termination can occur under various circumstances, categorized into:

1. Termination with Notice

This is the standard form of termination. Either party provides a written notice as stipulated in the employment contract. The notice period ranges from 30 to 90 days. It depends on the contract terms. The employee is entitled to their full salary during this period. They are allowed to continue performing their duties.

2. Termination Without Notice

An employer may terminate an employee without notice in certain situations. According to Article 44 of the UAE Labour Law, this is permissible if:

• The employee submits forged documents or assumes a false identity.
• The employee causes significant material loss to the employer.
• The employee violates workplace safety instructions.
• The employee fails to perform their basic duties despite prior warnings.
• The employee discloses confidential company information.
• The employee is intoxicated or under the influence of drugs during work hours.
• The employee assaults colleagues or superiors.
• The employee is absent without a valid reason for extended periods.

In such cases, a written investigation must be conducted, and the decision to terminate must be documented and justified.

3. Arbitrary Dismissal

Arbitrary dismissal happens when an employer terminates an employee without a valid reason. Employees subjected to arbitrary dismissal are entitled to compensation for the termination of employment in the UAE. This may include the following:

• End-of-service benefits.
• Notice period compensation.
• Additional compensation as determined by the court.

Employee Rights Upon Termination

Employees are entitled to certain rights upon termination. This may consist of the following details:

End-of-Service Benefits: Workers can receive gratuity pay based on their service length.

Notice Period Pay: Employers must compensate the employee for the notice period. They are required to do so if they terminate the contract without notice.

Job Search Leave: Employees are granted an unpaid leave day per week during the notice period. So they can seek alternative employment.

Return of Documents: Employers must return any personal documents that belong to the employee.

Summary Table: Termination Scenarios

Best Practices for Employers

Employers should follow the guidelines. Required to mitigate risks and guarantee lawful termination processes:

Develop Clear Policies: Establish workplace policies regarding performance expectations and conduct.

Maintain Documentation: Keep detailed records of all disciplinary actions in the UAE Labour Law.

Provide Training: Educate managers on the legal aspects of termination procedures.

Seek Legal Advice: Consult with legal professionals. This helps understand complex termination scenarios.

Guidance for Employees Facing Termination

Employees should familiarize themselves with the UAE Labour Law. Enabling them to know their entitlements in case of termination. They have a right to request detailed explanations for any warnings or termination decisions. Keep records of all correspondence related to the termination process. If they believe the termination is unjust, employees can file a complaint with the MoHRE.

Termination Process Checklist for Employers

FAQs

Can an employee be fired during probation?

Yes, employees can be terminated during probation without a warning letter. However, a written notice of 14 days is mandatory.

Can an employee challenge a warning letter?

Yes. The employee can provide a written response and request an internal review or investigation.

What if the termination feels unfair?

Employees can file a complaint with the MOHRE. If necessary, the matter can go to the Labour Court.

Can an employer terminate an employee without notice in the UAE?

According to Article 44, a UAE employer can terminate an employee without notice under specific conditions outlined. These situations involve serious misconduct by the employee, such as:

• Forging documents
• Causing significant material loss, or
• Violating safety rules.

Final Thoughts

Termination can be a sensitive process. However, it protects both employer and employee when done fairly and lawfully. Companies can maintain a healthy work environment. All they need is to understand the three warning letters before termination and follow proper procedures. In the meantime, stay aligned with UAE labor regulations closely.

Being informed saves you, whether you’re managing a team or working under one. Empowering you to act confidently and professionally in any employment scenario.

Looking for professional support? Try The UAE Gate’s top-notch consultancy. We are helping both the employee and the employer to lawfully pass this termination phase.