Article 44 of UAE Labour Law: A Comprehensive Guide to Summary Dismissal and Key Differences from Article 120

Article 44 of UAE Labour Law: The Definitive Guide to Summary Dismissal in 2025

Estimated reading time: 15 minutes

Key Takeaways

• Article 44 supersedes Article 120 with explicit, exhaustive grounds for summary dismissal under Federal Decree-Law 33/2021 (as amended).
• Employers must conduct a written investigation and issue a written, reasoned decision before any Article 44 dismissal.
• MOHRE must be notified within 7 working days only for loss/damage cases under Article 44(2).
• The ten grounds for summary dismissal under Article 44 are exhaustive; they cannot be expanded by policy.
• Non-compliance risks administrative fines under the Labour Law (general band AED 5,000–1,000,000, doubled on repeat) and, for certain offences, AED 100,000–1,000,000 as per the 2024 amendment.
• End of Service Gratuity remains payable on Article 44 dismissals if the worker has completed 1 year of service; employers may deduct proven amounts owed.

What is Article 44 of UAE Labour Law? The Fundamental Legal Shift

As of September 2025, the controlling legislation for private sector employment relationships is Federal Decree-Law 33 of 2021 (as amended by No. 9 of 2024). At its core is Article 44 of UAE Labour Law, which now defines—exclusively and exhaustively—the circumstances permitting termination without notice.

Key elements:

• Explicit grounds for summary dismissal replacing obsolete provisions.
• Formal written investigation as a prerequisite.
• Mandatory MOHRE reporting windows far more structured than the old 48-hour guideline.

Goodbye Article 120: Acknowledging the Repeal

The much-cited Article 120 of Federal Law No. 8 of 1980 is now legally obsolete. Its themes live on in modernized language and tighter standards, but it no longer governs practice. Persisting references to Article 120 signal outdated—and potentially unlawful—approaches.

Article 44 of UAE Labour Law: The Exhaustive List of Lawful Grounds for Summary Termination (2025)

Article 44 is a surgical instrument, not a catch-all exit strategy. Only after a formal written investigation may an employer terminate without notice, and only if one of the following ten grounds is proven:

1. Falsification or Forgery: Adopting a false identity or submitting forged documents.
2. Gross Negligence Causing Substantial Loss: Employer must report loss to MOHRE within 7 business days; or Deliberate Damage to Employer’s Property: Admission of intent and MOHRE report within 7 business days.
3. Serious Safety Violations: Breaches of written safety instructions that are posted in a visible place and notified to the worker.
4. Persistent Non-Performance: Failure of key duties after two written warnings (employment contract guide).
5. Disclosure of Commercial Secrets: Revealing sensitive information to third parties.
6. Being Under the Influence: Reporting to work under alcohol or prohibited drugs.
7. Assault or Aggression: Violence toward employer, managers, or coworkers.
8. Absence Without Lawful Excuse: More than 20 intermittent days or seven consecutive days unjustified.
9. Abuse of Position: Illegal exploitation of position for personal gains, when the employee exploits his position illegally to obtain personal gains.
10. Unauthorized Outside Work: Working elsewhere during company time, or joining another establishment without following MOHRE rules and procedures (e.g., transfer/work-permit formalities).

Article 44: Procedural Safeguards and Employer Duties—A New Benchmark for Due Process

Article 44 elevates due process from implication to unequivocal requirement:

Written Investigation

No summary dismissal may proceed without documenting an objective, written inquiry that allows the employee to respond.

Written Justification & MOHRE Notification

Upon conclusion, employers must provide a written decision and notify MOHRE of incidents involving loss or damage within 7 business days.

Penalties for Failure

Non-compliance can trigger fines from AED 5,000 up to AED 1,000,000 (doubling for repeat offences).

Article 44 vs. Article 120: The Key Differences Employers and Employees Must Know

At a glance:

• Governing Law: Article 120 under Federal Law 8/1980 (repealed) vs. Article 44 under Decree-Law 33/2021 (amended).
• Investigation: Implied vs. explicitly required.
• Notification: Informal 48 hours vs. mandatory 7 business days, which applies to Article 44(2) loss/damage cases).
• Penalties: Lower, vague vs. up to AED 1,000,000.

Practical Steps for UAE Employers in 2025: Navigating Article 44 Lawfully

1. Document all incidents, warnings, and evidence meticulously.
2. Conduct a formal, written investigation (with employee representation as a best practice, even though such representation is not mandated by law).
3. Notify MOHRE within 7 business days where required, which applies to Article 44(2) loss/damage cases).
4. Issue a detailed written dismissal decision.
5. Regularly review HR policies to align with current law and ministry circulars.

What Does Article 44 Mean for Employees? Rights, Remedies, and What to Do Next

• Summary dismissal is lawful only on the ten specified grounds.
• Procedural lapses—skipping investigation or MOHRE notification—can can render the dismissal unlawful, exposing the employer to compensation (up to 3 months’ wage) under Article 47 and related guidance.
• Gratuity is preserved unless expressly forfeited by specific misconduct.
• Unlawful dismissals entitle employees to compensation and unpaid entitlements.
• Always confirm you are invoking Article 44, not the repealed Article 120.

Authoritative Resources: Staying Updated and Legally Secure

• Federal Decree-Law No. 33 of 2021 (as amended by No. 9 of 2024)
• MOHRE and UAE Ministry of Justice official platforms
• Legal guides on summary dismissal

Article 44 and Related High-Volume Legal Concerns in the UAE

Article 44’s regime intersects with broader compliance frameworks—corporate tax, VAT, gratuity law—underscoring the need for rigorous documentation and procedural integrity across all regulatory domains.

Final Thoughts: Article 44 is the Gold Standard—Outdated Practices Have No Place in 2025

Article 44 marks a new era of legal certainty and due process in the UAE labour market. Employers and employees alike must abandon references to Article 120 and embrace the explicit, balanced protocols now in force.

Frequently Asked Questions

• Q: Can an employer dismiss without notice for minor misconduct?
  A: No. Only the ten serious grounds listed in Article 44 justify summary dismissal.
• Q: What happens if MOHRE reporting deadlines are missed?
  A: Failure to notify within 7 business days (applies to Article 44(2) loss/damage cases), can expose the employer to substantial fines.
• Q: Does an employee lose gratuity on summary dismissal?
  A: Generally no—unless the dismissal arises from a ground that expressly forfeits gratuity.
• Q: Can procedural errors overturn a dismissal?
  A: Absolutely. Skipping the written investigation or failing to provide a justified notice can render a dismissal unlawful.
• Q: Is Article 120 still valid?
  A: No. Article 44 of Federal Decree-Law 33/2021 (amended by No. 9/2024) has fully replaced Article 120.