Whether you’re a first-time OFW in the UAE or someone who’s been working here for years, it’s important to know when and why your work contract can legally end.
Sometimes, it’s expected, like when you resign or your contract expires. But there are also less obvious situations that can lead to contract termination.
According to the Ministry of Human Resources and Emiratisation (MoHRE), here are nine official reasons a work contract can end in the UAE, based on Federal Decree Law No. (33) of 2021:
- Mutual agreement – If both you and your employer agree to end the contract, then it’s valid.
- Contract expiration – If your limited-time contract ends and isn’t renewed, it’s automatically over.
- One party requests termination – You or your employer can end the contract, as long as the proper legal steps and notice period are followed.
- Death of employer – If your work depends directly on the employer and they pass away, the contract ends.
- Death or disability of the employee – If the employee dies or is permanently disabled and can no longer work, the contract is terminated. It should be substantiated by a certificate issued by a medical authority.
- Imprisonment – If the worker gets a final court conviction that results in a prison term of 3 months or more, the job ends automatically.
- Permanent closure of the company – If the business shuts down permanently and this is confirmed by the authorities, contracts are terminated.
- Bankruptcy or economic reasons – If the employer can no longer operate due to financial loss or exceptional events, contracts may end.
- Failure to renew work permit – If the employee can’t renew their work permit (for reasons not their fault), the contract ends.
Knowing these reasons helps protect your rights and lets you understand what to expect.
If you experience any of these, you’re not alone—and most of them are backed by proper legal steps. If unsure, consult MOHRE or your HR team for guidance.
