United Arab Emirates · employment

Can an Employer Terminate an Employee on Sick Leave in the UAE?

Under United Arab Emirates employment law, employers are legally barred from terminating workers or serving termination notices while an employee is on approved sick leave. A company can only lawfully end the contract on medical grounds after the employee has exhausted their full 90-day statutory sick leave entitlement and remains medically unfit to return. Dismissals executed during an active sick leave period constitute unlawful termination, exposing the employer to substantial compensation and statutory claims.

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UAE Labour Law Protections During Sick Leave

In the United Arab Emirates, private-sector employment relationships are governed by Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations (the UAE Labour Law). Under Article 31 of this statute, employees who have completed their probationary period are entitled to up to 90 continuous or intermittent days of sick leave per service year. This allowance is compensated across three distinct tiers: full wage for the first 15 days, half wage for the subsequent 30 days, and unpaid for the remaining 45 days.

Critically, the law shields employees during this recovery period. Employers are strictly prohibited from dismissing an employee or issuing a contractual notice of termination while that worker is on approved statutory sick leave. Attempting to terminate an employee mid-illness to avoid paying wages or to replace them with an immediate hire violates statutory protections. You do not forfeit your job simply because a physician has certified you unfit for duty.

When Termination Is Permitted vs. Unlawful Dismissal

An employer may only terminate an employee on health grounds if the employee has fully exhausted the statutory 90-day sick leave balance and remains medically incapable of resuming their duties, as established by Article 31(5) of Federal Decree-Law No. 33 of 2021. Even in that scenario, the termination is not disciplinary; the worker retains their full statutory end-of-service gratuity under Article 51, accrued annual leave encashment under Article 29, and all contractually accrued dues.

If HR issues a notice of termination or terminates your contract before the 90 days have expired, the dismissal is unlawful. Under Article 47 of the UAE Labour Law, terminating an employee for arbitrary or illegitimate reasons entitles the worker to compensation of up to three months' gross salary awarded by the competent Labour Court, on top of payment in lieu of notice under Article 43 and full end-of-service benefits. The only narrow exception permitting immediate dismissal is proven gross misconduct under Article 44, such as submitting a forged medical certificate or working for a competing entity during sick leave.

Asserting Your Rights Against Unlawful Termination

Employers and HR departments often exploit an employee's illness to force resignations, issue retroactive termination letters, or pressure workers into signing comprehensive liability waivers. The law does not recognize waivers that strip workers of statutory protections granted under Federal Decree-Law No. 33 of 2021. If your company terminates your visa or service while you hold an authenticated medical certificate, their action creates an actionable labour violation.

You must maintain strict documentary evidence of your medical approval and written correspondence. To determine where you stand, evaluate your contractual entitlements, or prepare for mediation with the Ministry of Human Resources and Emiratisation (MoHRE), you can use Caunsel to research applicable UAE labour regulations, organize and store your medical records and emails in a private case file, or connect directly with an independent UAE-licensed employment lawyer for bespoke legal counsel.

Steps

Common mistakes

Questions people ask

Can my employer fire me during probation if I become sick in the UAE?

Yes, but with caveats. Under Article 31(2) of Federal Decree-Law No. 33 of 2021, employees are not entitled to paid statutory sick leave during probation. Employers may terminate employment during probation under Article 9, provided they give at least 14 days' written notice. However, the employer cannot fabricate misconduct to bypass this notice period.

Can my employer serve my 30-day notice period while I am currently on sick leave?

No. Under UAE Labour Law, an employer cannot serve a notice of termination while an employee is actively utilizing their approved leave. Any notice issued during statutory sick leave is invalid, and the employer must wait until the leave concludes or until the 90-day threshold is exhausted.

What compensation can I claim if dismissed while on approved sick leave?

You are entitled to your unpaid wages for the sick leave days taken (tiered under Article 31), pay in lieu of the contractual notice period under Article 43, accrued annual leave encashment under Article 29, end-of-service gratuity under Article 51, and court-determined arbitrary dismissal compensation of up to three months' gross salary under Article 47.

Ask Caunsel to review your termination notice against Article 31 of UAE Labour Law and estimate your statutory compensation claim.

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General information only, last updated 2026-10-12. Caunsel is not a law firm and does not practise law. AI answers and this guide are not legal advice. Verify filings, deadlines, and statutes with a licensed lawyer in United Arab Emirates.