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When you need to terminate an employee's contract due to health reasons in the United Arab Emirates, you must follow strict legal procedures to ensure compliance with UAE Federal Decree-Law No. 33 of 2021. This sensitive process requires careful documentation, proper medical evidence, and adherence to specific legal requirements that protect both your organization and the affected employee.

When do you need this document?

You need a Termination Letter Due To Health Reasons when an employee's medical condition permanently prevents them from performing their essential job duties, even after reasonable accommodations have been considered. This situation typically arises after the employee has exhausted their entitled sick leave under Article 31 of UAE Labor Law - which provides full pay for the first 15 days, half pay for the next 30 days, and unpaid leave thereafter. The letter becomes necessary when medical professionals confirm the employee cannot return to their role, when the employee's condition poses safety risks to themselves or others, or when extended absence significantly impacts business operations. You must ensure all alternative solutions, including role modifications or transfers to suitable positions, have been genuinely explored before proceeding with termination.

Key legal considerations

The termination process must demonstrate fairness and legal compliance throughout. You must obtain proper medical documentation from qualified healthcare professionals that clearly establishes the employee's inability to perform their duties. Article 36 of UAE Labor Law requires you to provide appropriate notice periods unless the medical condition makes immediate termination necessary for safety reasons. Your letter must reference all previous communications, medical reports, and accommodation attempts to show due process was followed. Calculate end-of-service benefits according to Article 51 of UAE Labor Law, ensuring the employee receives their full entitlements including unused annual leave, notice period pay if applicable, and gratuity payments. You must also address medical insurance continuation where required, particularly under Dubai Law No. 11 of 2013 for Dubai-based employees, and ensure smooth handover of company property and confidential information.

Legal requirements in United Arab Emirates

UAE employment law mandates specific procedures for health-related terminations that you must follow precisely. The letter must be issued on official company letterhead and include all required employee identification details, clear termination statements, and specific effective dates. You must provide detailed calculations of final settlements, including pro-rated salary, unused leave encashments, and statutory gratuity payments as mandated by UAE Labor Law. The document should reference the legal basis for termination while maintaining respectful language that acknowledges the employee's medical circumstances. Ensure you coordinate with relevant authorities if the health condition is work-related, as this may trigger additional compensation requirements under UAE occupational health regulations. Keep comprehensive records of all medical documentation, accommodation discussions, and legal compliance measures, as these may be required if the termination is later challenged through UAE labor dispute resolution mechanisms.