Article 120

The UAE labor law provides certain rights to both employees and employers. It covers each and every aspect related to the employees and employers. One of the important aspects of the UAE labor laws is Article 120 which is about the termination of the employment contract by the employers. Both the companies and individuals are expected to follow these rights under Article 120 UAE labor law.

Article 120 is amended in the year 1980 under the UAE Federal Labour Law no.8.

According to Article 120 of the Law, an employer can suspend a worker without any notice under the following circumstances:

  • If the worker adopts false nationality/identity and submits fake certificates/documents he will be terminated.
  • A worker can be dismissed while on probation or after the expiry of the probation.
  • An employer can notify the ministry of labor about the fault committed by the worker if the fault resulted in a considerable material loss for the employer. The employer must notify the labor department within 48 hours after he is aware of this incident.
  • The written instructions are posted at the conspicuous workplace if the worker disobeys the instructions related to the safety of the workplace or respecting industrial safety. If the worker is illiterate then he will be informed verbally.
  • If the workers fail to perform basic duties present in the employment contract and continue to violate them, a written investigation and warning about the dismissal of such behavior will be issued. If the violation continues in spite of warnings then he will be suspended.
  • If the worker reveals any of the establishment secrets of the company he is working he will be terminated
  • The worker will be judged by the competent court with respect to offensive prejudicing honor, public morals, honesty, etc
  • If the worker is found drunk or if he under the influence of the prohibited drugs during working hours then he will be terminated
  • The worker can also be suspended if he attacks the manager, the employer, or other workmates on duty.
  • If the worker is absent from his work without any valid reason for more than 20 intermittent days or more than 7 consecutive days in a span of one year.

So according to Article 120 UAE labor law, under any one of the above-mentioned circumstances, it is lawful to terminate an employee without any notice.

Also refer: How to calculate gratuity?

Even though these laws may not be applicable to free zones, most of the free zones do follow these. If an employee believes that he has been terminated illegally then he can raise a complaint to the Ministry of Human Resources and Emiratisation. It will try to sort the issue cordially. If there is no cordial settlement then this case will be referred to the respective court.

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Anala is a young and spunky guru on financial matters, who tells you like it is; everything from managing debt to managing savings accounts. While books and movies keep her brain ticking, Anala pursues swimming and dancing to keep fit. A lifelong explorer and learner, Anala believes in giving back, and volunteers with the Bright Spark Education program at the NGO Youngistaan Foundation, where she opens up children's minds to the innumerable possibilities of a happy and successful life!

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