The UAE Labour Law governs the relationship between employers and employees, ensuring fairness and accountability on both sides. Among its key provisions, Article 120 plays a critical role in defining the circumstances under which an employer can terminate an employee without prior notice or end-of-service benefits.
Understanding Article 120 is essential for both employers and employees working in the United Arab Emirates. This article dives deep into its clauses, implications, and best practices for avoiding legal trouble.
What is Article 120 of the UAE Labour Law?
Article 120 of Federal Decree Law No. 33 of 2021 (previously Federal Law No. 8 of 1980) gives employers the right to dismiss an employee without notice under specific conditions. These exceptions are clearly outlined and designed to prevent misuse while protecting the rights of the employer in serious cases of misconduct or breach of trust.
The Law States:
An employer may terminate an employee without prior notice in the following situations:
-
Forgery of Documents or Certificates
-
Probationary Period Performance Issues
-
Substantial Loss to Employer Due to Employee Error
-
Violation of Workplace Safety Instructions
-
Failure to Perform Basic Duties
-
Alcohol or Drug Use at Work
-
Verbal or Physical Assault
-
Disclosure of Confidential Information
-
Absence Without Valid Reason
Let’s break down each point.
Grounds for Termination Under Article 120
1. Forgery or False Identity
If an employee is found to have used forged documents, fake certificates, or false identity to secure the job, the employer has the legal right to terminate them without notice. Misrepresentation during recruitment is a serious offense under UAE law.
2. Poor Performance During Probation
While the probation period allows employers to evaluate performance, Article 120 also allows for immediate termination if an employee fails to meet performance expectations. However, this must be within the probation timeframe and in accordance with contract terms.
3. Loss Caused by Gross Negligence
If an employee causes a financial or material loss to the employer through negligence or violation of work instructions, they can be dismissed. The employer must notify the Ministry of Human Resources and Emiratisation (MOHRE) within 48 hours of the incident.
4. Breach of Safety Protocols
Failure to follow workplace safety guidelines, especially in hazardous industries like construction, can lead to termination under UAE labour law of Article 120. However, this is only applicable if safety instructions are clearly displayed and regularly communicated in writing.
5. Insubordination or Dereliction of Duties
An employee who continuously refuses to perform job responsibilities or obey lawful instructions, despite receiving written warnings, can be terminated. This clause emphasizes the importance of accountability and following organizational hierarchy.
6. Being Under Influence
If an employee is caught intoxicated or under the influence of drugs during working hours, the employer has the full right to terminate them without compensation or prior notice.
7. Assault at the Workplace
Verbal abuse, threats, or physical assault on the employer, manager, or co-worker is a valid reason for instant termination. The UAE promotes a respectful and safe work environment, and any form of aggression is taken seriously.
8. Breach of Confidentiality
Disclosing company secrets, client information, or business strategies without authorization is considered a breach of trust and loyalty. This includes misuse of intellectual property, sensitive documents, or data leaks.
9. Unjustified Absenteeism
An employee who is absent from work for more than 20 non-consecutive days or 7 consecutive days without valid reason in a single year may be dismissed without prior notice. Employers are expected to document such absences properly before initiating termination.
Important Conditions & Employer Obligations
While Article 120 permits immediate dismissal, employers must still adhere to due process. These include:
-
Proof and Documentation: Employers must retain proof of misconduct (e.g., CCTV footage, written warnings, or HR reports).
-
MOHRE Notification: In cases involving loss or safety violations, the Ministry must be informed within 48 hours.
-
Fair Application: Article 120 must not be used to unfairly dismiss employees or as retaliation.
Failure to follow these procedures could lead to labour disputes, legal penalties, or orders for employee compensation.
Employee Rights Under Article 120
Even when terminated under Article 120, employees still retain some rights:
-
Final Settlement: They are entitled to payment for unused leave days, salary up to the termination date, and any other earned benefits not related to end-of-service.
-
Right to Appeal: Employees can challenge the termination by filing a complaint with MOHRE or approaching the Labour Court if they believe the termination was unjust or misapplied.
-
Clear Communication: Employers are encouraged to provide a written explanation for termination to avoid legal confusion.
Real-World Scenarios & Examples
Let’s consider a few examples to better understand how Article 120 may apply:
Example 1: Forgery of Documents
An employee submits a fake university degree to meet job qualifications. Three months later, the HR department discovers the forgery during routine verification. The employer can terminate the employee immediately under Article 120.
Example 2: Repeated Absenteeism
A worker in a warehouse skips work for 8 days in a row without informing the manager. The company issues a termination notice under Article 120 (Clause 9), with attendance records as proof.
Example 3: Workplace Assault
A heated argument turns physical between two employees. The aggressor is terminated immediately as per Article 120 (Clause 7), and the incident is reported to authorities.
These examples highlight the serious nature of the violations and why the law provides employers the right to act swiftly.
Best Practices for Employers and Employees
For Employers:
-
Ensure employment contracts clearly mention Article 120 clauses.
-
Maintain HR documentation and written warnings.
-
Use Article 120 fairly and avoid emotional decisions.
-
Provide training on workplace behavior and legal policies.
For Employees:
-
Be aware of your contractual and legal obligations.
-
Avoid risky behavior that could lead to dismissal.
-
Maintain open communication with supervisors regarding performance or absences.
-
Read up on UAE Labour Law or consult a labour lawyer if unsure.
Legal Assistance: When to Consult a Labour Lawyer
If you are facing termination under Article 120, or if you're an employer unsure whether the situation qualifies, it's advisable to consult a labour law expert in the UAE.
Labour lawyers can help:
-
Assess the legality of the termination.
-
Draft or review legal notices.
-
Represent you in MOHRE disputes or court.
-
Ensure compliance with labour law changes.
Getting legal help can reduce risk of lawsuits, reputational damage, and monetary penalties.
Conclusion
Article 120 of UAE Labour Law serves as a critical safeguard for employers dealing with serious employee misconduct. However, it must be applied transparently, fairly, and with documented proof. For employees, knowing the law helps them protect their rights and avoid unintentional violations.
As the UAE continues to modernize its workforce laws in line with international standards, understanding legal provisions like Article 120 ensures both employers and employees operate in a safe, respectful, and lawful environment.
Visit NG Manpower for more!
