Being employed in the UAE comes with a responsibility. You should be aware of your rights, especially when losing your job. Know about your rights and responsibilities. This makes it mandatory to understand Article 120 UAE Labour Law. This rule clearly outlines the conditions under which an employer can end your contract. Every company in the UAE, belonging to any industry, is obliged to follow this determined set of regulations. Having clarity on this law allows you to move forward with confidence and avoid any possible issues.
Follow this guide and understand everything about Article 120 of the UAE Labour Law. Highlight key termination rules, bust common myths, and help you understand your rights under the UAE termination law.
What is Article 120 of the UAE Labour Law?
Introduced by the government, Article 120 of the UAE Labour Law is one of the most important provisions that employees and employers should understand. It outlines the specific cases where an employer can legally terminate an employee without giving prior notice or end-of-service compensation. Unlike general termination rules, Article 120 focuses on serious situations such as:
- Dishonesty
- Workplace misconduct
- Repeated negligence
- Breaches of trust.
Employers have the authority to act quickly under the law in these cases. But it also places clear boundaries. Employers cannot dismiss staff randomly or without evidence; they must prove that the employee committed one of the violations listed under Article 120. For employees, knowing these rules protects against unfair or unlawful dismissal.
This article also works alongside broader labour policies, including the Emiratization Law, which aims to increase the participation of UAE nationals in the workforce. Together, these regulations create balance in the labour market, ensuring discipline while safeguarding employee rights.
In simple terms, Article 120 is about setting clear boundaries for termination, making sure both employers and employees know what counts as a valid reason for dismissal.
Key Termination Rules Under Article 120
Article 120 of UAE labour law spells out the exact cases where dismissal is legally valid. Employees should understand these scenarios to avoid surprises.
Termination Without Notice
In case of serious violations, employers can dismiss an employee immediately. Examples of such situations include:
- Forged certificates or false details at hiring.
- Breach of workplace safety rules.
- Disclosing sensitive company information.
- Absence without a valid reason for more than 20 days in a year.
In these situations, the labour law UAE termination rules apply, and no notice period is required.
Specific Grounds for Immediate Dismissal
These are the grounds that must be followed when dismissing an employee. The law lists very clear grounds for dismissal. These include:
| Grounds for Dismissal | Explanation |
| Fraud or Misrepresentation | Using forged documents during recruitment. |
| Financial Misconduct | Theft, fraud, or misuse of company assets. |
| Repeated Negligence | Failing duties after repeated warnings. |
| Criminal Offenses | Conviction for crimes involving dishonesty. |
| Unauthorized Absence | Absent 7 consecutive or 20 non-consecutive days. |
These conditions highlight when the the UAE termination law allows dismissal without prior warning.
Employer’s Obligations Before Termination
The obligations are implied on employers as well. They are still required to act responsibly. This ensures employees are treated fairly and not dismissed without a valid reason. Under Article 120 of the Labour Law, they must:
- Provide warnings where applicable.
- Keep written records of misconduct.
- Respect employment contract terms.
- Avoid discrimination of any kind.
Employee Rights Under Article 120
Employees are not left unprotected even when the law gives employers authority; employees are not left without protection. Article 120 UAE Labour Law 2024 ensures workers maintain certain rights, even in dismissal cases.
Notice Period Exceptions
In normal cases, employees are entitled to serve. However, under Article 120 of the UAE labour law, exceptions apply in cases of fraud, misconduct, or negligence. In those cases, the employer is not obligated to provide notice.
That said, understanding the Notice Period in the UAE helps employees recognise when they should have received a warning and when dismissal can be challenged.
Right to Compensation in Certain Cases
Dismissal does not always mean the end of your entitlements. If an employer cannot justify termination under the UAE termination law, employees can:
- Claim unpaid salary and benefits.
- Request end-of-service gratuity.
- File a dispute with MOHRE for wrongful termination.
These rights help employees push back against unfair practices.
Common Misunderstandings About Article 120
People often misunderstood Article 120 UAE Labour Law, regardless of being very important. This leads to confusion among employees and even employers. Let’s clear up the most common myths.
Myth 1: Dismissed employees automatically lose all rights.
Truth: Employees may still be entitled to unpaid salary, gratuity, or compensation if termination was unfair. The law protects workers from arbitrary dismissal.
Myth 2: Employers can dismiss staff at any time.
Truth: Employers can only dismiss workers under the specific violations listed in the law, such as fraud, misconduct, or repeated negligence.
Myth 3: Article 120 covers annual leave rights.
Truth: Leave and holidays fall under Article 29 UAE Labour Law, not Article 120.
Another source of confusion is Article 88 UAE Labour Law, which deals with working for another employer without permission. It is completely separate from Article 120 and should not be mixed up.
How to Protect Your Rights as an Employee
Being informed gives you the right defence. Knowledge is your power when it comes to the workplace. By understanding Article 120 UAE Labour Law, you can take simple but effective steps to secure your position and protect your career. Use this checklist:
Keep your documents safe
Always store copies of your signed contract, salary slips, and official letters. These become essential if disputes arise.
Request written clarification
If you receive warnings or notices, ask for them in writing to avoid confusion later.
Document communications
Save emails, messages, and HR discussions. Written records provide strong evidence in the case of legal disputes.
Seek professional advice
If you feel the termination is unfair, consult MOHRE Labour Contract guidelines or a labour lawyer for guidance.
Review contracts carefully
Clear and updated UAE employment contracts are the backbone of your rights. Understand every clause before signing.
By following this checklist, you stay protected and prepared under UAE law.
Final Thoughts
The UAE government always support the well-being of employees for their better future. Article 120 UAE labour law is just another legal regulation that works to create fairness and accountability in the workplace. By learning how it works, you strengthen your job security and protect yourself from unfair treatment.
For more guidance on employment rights and Emiratisation updates, visit Emiratisation Hub or the official MOHRE website.
FAQs
Q1: What are the valid reasons for termination under Article 120?
They include fraud, dishonesty, misconduct, negligence, criminal conviction, or absence without justification, as explained under Article 120 UAE Labour Law.
Q2: Can an employer terminate without notice?
Yes, but only if the employee commits violations listed in Article 120 of the UAE labour law.
Q3: What compensation is given if terminated under Article 120?
If the dismissal follows legal grounds, no compensation applies. If wrongful, employees can claim salary, gratuity, and damages under the labour law UAE termination rules.
Q4: Can an employee challenge a dismissal under Article 120?
Yes. Workers may file a complaint with MOHRE or take the case to court under the UAE termination law.
Q5: Does Article 120 apply to all employees in the UAE?
Yes, it applies to most private-sector employees, unless exceptions are stated in special laws.
