Introduction Article 44 UAE Labour Law Explained and Evolved
Employment relations in the United Arab Emirates are governed by a robust legal regime designed to balance employer prerogatives with comprehensive employee rights. One of the most pivotal concepts for both employees and employers alike has long been summary dismissal—colloquially still referenced through “article 120 UAE labour law,” the former legislative provision permitting the immediate termination of employment under specified circumstances. Yet, with the UAE’s ambitious legal overhaul, including the implementation of Federal Decree-Law No. 33 of 2021 on Regulation of Labour Relations (in force since February 2022) and subsequent amendments through Federal Decree-Law No. 9 of 2024 (effective from August 31, 2024), the landscape for lawful, cause-based termination has changed dramatically. This article unpacks the original significance of article 120, details how its core essence persists in current law (primarily Article 44), and highlights the enhanced protections, procedures, and remedies available as of 2025. Whether you are a UAE resident, an expatriate worker, or an employer, understanding these changes is crucial to safeguarding your rights, obligations, and the overall integrity of labour relations in the Emirates.
The Legal Shift From Article 120 to Article 44 Current Law in the UAE
For decades, article 120 UAE labour law of the now-superseded Federal Law No. 8 of 1980 outlined exhaustive grounds for summary dismissal—situations where employment could be terminated instantly, without notice or end-of-service benefits. With the coming into force of Federal Decree-Law No. 33 of 2021, these termination grounds have been relocated, expanded, and supplemented to account for modern employment realities and enhanced employee protection.
Today, the relevant provisions reside in Article 44 of the current labour law. This legislative update was not merely a renumbering exercise; it marks a paradigm shift. Employers now face a higher burden of proof, must adhere to strict investigation and documentation protocols, and have to notify the Ministry of Human Resources and Emiratisation (MOHRE) in certain instances. These developments ensure the dismissal process remains fair, transparent, and justiciable. According to the latest official sources and regulatory updates, no employer may invoke summary dismissal except on precisely defined legal grounds and only after following mandated procedures.
Grounds for Summary Dismissal Serious Misconduct in Focus
Although we now refer to Article 44 instead of article 120 UAE labour law, the substance of summary dismissal—terminating an employee due to “gross misconduct”—remains largely unchanged, albeit with stricter safeguards. Below, we detail the actionable grounds for instant dismissal under current law:
- Falsifying Documents: Employing forged documents or providing false identification during the recruitment process is an immediate ground for termination without notice.
- Material Loss to Employer: Causing significant financial loss through gross negligence or mistake (with MOHRE notified within 48 hours of the employer’s discovery).
- Insubordination and Repeated Misconduct: Failure to perform essential job duties repeatedly—especially after formal written warnings and an internal investigation.
- Breach of Confidentiality: Unauthorized disclosure of business secrets or sensitive information can lead to instant dismissal.
- Criminal Conviction: Conviction for crimes of dishonesty, honor, or moral turpitude by a court with finality.
- Intoxication or Substance Abuse: Being under the influence of alcohol or prohibited substances during work hours.
- Workplace Assault: Physical assault of an employer, supervisor, or colleague while at work is a grave offense warranting instant removal.
- Unjustified Absences: Absence from work for more than 20 non-consecutive days or 7 consecutive days within a calendar year, without valid reason or approval.
- Recent Additions: As per the 2021 Decree-Law and 2024 amendments, abusing one’s job position for personal benefit and working for another employer without complying with official processes now feature in the dismissal grounds.
The law mandates employers to keep meticulous written records supporting any such termination, reinforcing accountability and allowing meaningful post-dismissal dispute resolution, if needed.
The Mandatory Process for Lawful Dismissal Updated Protocols
Modern UAE labour law no longer allows for hasty terminations based purely on employer allegation. Before any instant dismissal under Article 44 (the successor of article 120 UAE labour law), certain procedural steps must be respected:
- Investigation and Documentation: Except in cases of obvious criminality or gross misconduct caught “red-handed,” employers must first conduct an internal investigation and provide the employee with a written warning explaining the alleged violation and consequences.
- Official Notification: Where a material loss to the employer is claimed, the matter must be reported to MOHRE within 48 hours. Missing this timeline can void the employer’s right to dismiss summarily on that ground.
- Evidence Retention: It is the employer’s duty to retain full records of the violation (including communications, warnings, investigation findings, and loss assessments) in anticipation of possible review or legal challenge.
- Support for Employees: Employees are entitled to a written statement of termination, specifying the detailed cause, which becomes vital should the employee wish to contest the action at MOHRE or before the Labour Courts.
Failure by employers to properly document and substantiate summary dismissals will often serve as strong grounds for employee compensation claims and possible reinstatement—significantly strengthening workforce protections across the UAE.
Employee Rights Remedies and Wrongful Dismissal Claims
With stringent protocols in place, current UAE law empowers employees facing summary dismissal with remarkable recourse:
- Entitlement to Written Reasons: Employees may demand—and must be given—a clear, written explanation for their termination and the legal basis invoked.
- Complaints and Mediation via MOHRE: Any dismissal can be reviewed through a grievance filed with MOHRE, which will mediate between the parties and may require the employer to justify the termination with all available documentation. Under the 2024 amendments, MOHRE has binding authority to adjudicate disputes involving claims up to AED 50,000.
- Salary Continuation During Disputes: As per the 2024 amendments, employers may be required to continue paying salaries to employees for up to 2 months while employment disputes are being resolved, providing crucial financial stability during potentially lengthy resolution processes.
- Labour Court Appeals: If mediation fails for disputes exceeding AED 50,000, employees are free to approach the Labour Court, where the onus will generally rest on the employer to prove the lawfulness of the dismissal. Where the employer cannot substantiate the summary grounds or where the procedures were not correctly followed, courts regularly award compensation for unfair dismissal, including damages, pay for the unserved notice period, and remaining end-of-service entitlements.
- Statute of Limitation: It’s important to note that under the 2024 amendments, labor claims must be filed within one year, after which employees lose their right to sue regardless of the claim’s merits.
Significantly, the procedural burden on employers to maintain due process means that even if an employee committed a qualifying act, compensation might still be awarded if investigation and notification requirements were bypassed. This evolution secures a fair and diligent approach to terminating employment relationships in the Emirates.
Employer Obligations and Practical Advice Compliance Is Key
For those managing UAE businesses, adherence to the updated legal structure is not optional. Given the critical importance of documentation and the legal risks of even minor missteps, employers are strongly encouraged to:
- Maintain scrupulous records of all disciplinary action, warnings, investigation outcomes, and official notifications.
- Ensure human resources and legal teams receive regular training on the newest MOHRE guidance and amendments to the labour law framework, including detailed digital tracking of contracts and disciplinary procedures.
- Refrain from relying solely on contractual terms in the employment agreement; compliance with statutory minimums as updated by the 2021 Decree-Law and 2024 amendments always takes precedence over employer policy.
- Consider seeking qualified legal advice before initiating summary terminations, especially those involving allegations of fraud, dishonesty, or confidential information breaches.
- Be aware of the significant fines for violations, which can range from AED 5,000 to AED 1,000,000 depending on the nature of the violation, with fines potentially doubling for repeat offenses.
Employers must recall that, except for permitted summary dismissal cases, the standard notice periods (30–90 days as set by the contract and law) remain enforceable. Neglecting these requirements can render any termination invalid and expose organizations to costly litigation and reputational risk.
Legal Accuracy Update – July 2025 Compliance Review
As of July 2025, legal professionals and HR managers should be aware of a few technical but important updates to ensure their understanding of summary dismissal remains fully aligned with the most current UAE labour legislation:
MOHRE Notification Timeline: While earlier guidance suggested a 48-hour reporting window in cases of material loss, the current law mandates that such incidents must be reported to MOHRE within seven (7) business days of discovery. Failure to do so can nullify the employer’s right to dismiss summarily under that ground (Article 44, Federal Decree-Law No. 33/2021, as amended).
Gratuity Entitlement Maintained: Unlike the previous Federal Law No. 8 of 1980, the present legal regime confirms that employees dismissed under Article 44 still retain their right to end-of-service gratuity, provided they meet eligibility requirements. This reflects a move toward equitable treatment, even in cases of gross misconduct (Article 44(7), 2021 Labour Law).
Increased Fines for Non-Compliance: Under Federal Decree-Law No. 9 of 2024, fines for labour law violations, including improper dismissal, have significantly increased. Employers may now face penalties ranging from AED 5,000 up to AED 1,000,000, with doubling of fines for repeat violations or failure to implement proper dismissal procedures.
Claim Filing Time Limit: The statute of limitation for labour claims is one (1) year from the date of the alleged violation. Claims filed after this period will be barred, even if meritorious. This limitation balances prompt dispute resolution with procedural fairness.
These clarifications reinforce the UAE’s legal commitment to procedural justice and regulatory modernization. Employers are urged to revisit their internal HR protocols, while employees are encouraged to understand their enhanced protections and timely remedies under the current legal framework.
Conclusion Navigating Summary Dismissal in the Modern UAE Labour Market
In summary, while the phrase “article 120 UAE labour law” still resonates in the collective memory of UAE workplaces, the actual law in force governing summary dismissal is now Article 44 of Federal Decree-Law No. 33 of 2021, as further amended by Federal Decree-Law No. 9 of 2024. The essence of summary termination—protecting employers from serious breaches while shielding employees from arbitrary or unfair actions—remains intact, but the procedural demands are more exacting than ever. Resident professionals and expatriates should understand both their obligations and rights: dismissals must be based on clear-cut legal grounds, supported by rigorous evidence and thorough processes, and subject to meaningful legal scrutiny.
For anyone living or working in the UAE, staying updated with these critical developments—and recognizing both protections and risks they entail—ensures not only legal compliance but also stable, fair, and mutually respectful employment relationships across all sectors.
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Article by ProConsult Advocates & Legal Consultants, the Leading Dubai Law Firm providing full legal services & legal representation in UAE courts.
