Article 44 UAE Labour Law: Summary Dismissal, Procedural Safeguards, and Employee Rights in the UAE

Introduction: Why Article 44 UAE Labour Law Has Become the New Benchmark for Summary Dismissal in the UAE

Estimated reading time: 20 minutes

Key Takeaways

• Article 44 now codifies ten exhaustive grounds for summary dismissal UAE.
• Employers must follow strict procedural requirements dismissal UAE, including written investigations and MOHRE notifications.
• Employees retain end-of-service gratuity post-dismissal; forfeiture is not automatic.
• MOHRE’s enhanced dispute-resolution powers and extended 2-year claim period increase scrutiny and employer obligations.

Legal Framework: From Article 120 to Article 44 UAE Labour Law

Under the repealed Federal Law No. 8 of 1980, summary dismissal was governed by Article 120. That statute has been replaced in the private sector by Federal Decree-Law No. 33 of 2021 Regarding the Regulation of Employment Relationship, as amended by Federal Decree-Law No. 9 of 2024. Article 44 of the current law specifies the circumstances in which an employer may dismiss a worker without notice. Remedies for unlawful termination are provided principally under Article 47, and the applicable procedural and claim periods are governed by Articles 54 and related provisions.

The Ten Exhaustive Grounds for Summary Termination Under Article 44 UAE Labour Law

Article 44 sets out the specific circumstances permitting a dismissal without notice. These grounds are exhaustive under the current Federal Labour Law and may not be expanded by internal policy beyond what the law provides:

• Falsification or Forgery in Recruitment – Material misrepresentation in hiring.
• Gross Negligence Causing Substantial Loss – Requires MOHRE notification summary dismissal within 7 working days.
• Deliberate Damage to Employer Property – Intentional harm to assets supported by evidence.
• Serious Safety or Hygiene Violations – After clear written rules and communication.
• Persistent Non-Performance – After at least two written warnings.
• Disclosure of Commercial or Industrial Secrets – Breach of confidentiality with demonstrable harm.
• Being Under the Influence of Alcohol or Prohibited Drugs – At work with compliant testing protocols.
• Assault or Aggression in the Workplace – Physical or serious verbal aggression.
• Unauthorised Absence Without Legitimate Excuse – Over 20 days/year intermittent or 7 consecutive days.
• Abuse of Position or Working for Another Employer – Conflicts of interest and illicit gain.

Procedural Requirements for Lawful Summary Dismissal Under Article 44 UAE Labour Law

Even with a valid ground, employers must:

• Conduct an objective written investigation – Notify the employee, collect evidence, allow response.
• Issue a written, reasoned termination decision – Cite the specific ground, factual narrative, and entitlements.
• Notify MOHRE where substantial loss is alleged – Within 7 working days. In fact where the dismissal is based on Article 44(2) (grave material loss to the employer or deliberate damage to employer property acknowledged by the worker), the employer must notify the Ministry of Human Resources and Emiratisation of the incident within 7 business days from the date the employer became aware of it.
• Provide written reasons upon request – Consistent with internal records.
• Navigate amended Article 54 dispute resolution – MOHRE settlements enforceable, court challenges in 15 days.

Employee Rights After Summary Dismissal: Gratuity, Remedies, and Access to Justice

Under the current regime:

• End-of-Service Gratuity – End-of-Service Gratuity is payable to an employee who has completed at least one year of continuous service, even if the employee has been dismissed without notice under Article 44, subject to lawful deductions for verified financial liabilities proven against the employee.
• Outstanding Wages and Benefits – Salary, accrued leave, allowances up to termination date.
• Right to Challenge Dismissal – File with MOHRE, then Court of First Instance if needed.
• Compensation for Unlawful Termination (Article 47) – Up to 3 months’ basic wage plus dues.
• Preservation of Labour Market Reputation – Formal vindication can mitigate indirect harm.

Employer Obligations and Risk Management Under Article 44 UAE Labour Law

Key strategies:

• Align policies with Article 44 – Ten grounds as exclusive misconduct categories.
• Meticulous documentation – Retain records for at least the 2-year claim period.
• Timely MOHRE notifications – Designate responsibilities for loss-related cases.
• Prove and limit deductions – Only quantified, lawful losses may offset entitlements.
• Separate performance management – Use warnings and improvement plans before summary dismissal.
• Train HR and managers – Regular updates on procedural requirements and risks.

Article 44 vs Article 120, Compensation, and the Time Limit to File Labour Claims

The shift from Article 120 to Article 44:

• Substantive alignment, procedural intensification – Heightened evidentiary and investigatory standards.
• Compensation under Article 47 – Remedy for unlawful dismissal up to 3 months’ basic wage.
• Extended claim period – Extended 2 years statute limitation period to file labour claims under amended Article 54. The law’s procedural framework, including claim periods, is governed by Article 54 and related disciplinary and dispute-resolution provisions of Federal Decree-Law No. 33 of 2021 and its amendments. Employer and employee claims are typically pursued through the Ministry of Human Resources and Emiratisation and subsequently through the courts if necessary. The case for any rights entitled under the provisions of the UAE Labour Law shall not be heard after the lapse of two years as of the date of work relation termination.
• No automatic forfeiture of gratuity – Forfeiture only on legally proven grounds.

MOHRE Notification, Practical Strategy, and Navigating Summary Dismissal in Dubai and the UAE

Practical insights:

• MOHRE notification is mandatory only for loss-related Article 44 cases.
• No general obligation to notify MOHRE of every summary dismissal.
• Lower-value disputes (≤ AED 50,000) are enforceable unless challenged within 15 days.
• Consider strategic settlement vs litigation to manage exposure.

Frequently Asked Questions

• What constitutes gross misconduct under Article 44?
  The law specifies ten closed grounds, including forgery, negligence causing loss, and unauthorised disclosures.
• Is end-of-service gratuity forfeited after summary dismissal?
  No. Gratuity is preserved after one year of service, subject only to lawful deductions.
• When must MOHRE be notified?
  Within 7 working days in cases of gross negligence causing substantial loss.
• How long can an employee challenge a summary dismissal?
  Up to two years from the termination date under amended Article 54.