Employment relationships in United Arab Emirates are primarily governed by the provisions of UAE Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations (commonly referred to as the UAE Labour Law). The law establishes the rights and obligations of both employers and employees and outlines the procedures for termination of employment. While the general rule requires either party to provide notice before terminating an employment contract, the law recognizes certain exceptional circumstances where an employer may terminate the contract immediately without serving a notice period.

General Rule on Notice Period

Under the UAE Labour Law, employment contracts are typically terminated by giving a written notice. The statutory notice period usually ranges between 30 to 90 days, depending on what is agreed upon in the employment contract. During this period, the employment relationship continues, allowing both parties time to prepare for the transition.

However, the law also provides specific situations where the employer may terminate the contract without notice, commonly referred to as summary dismissal.

Legal Grounds for Termination without Notice

Article 44 of UAE Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations lists circumstances in which an employer may dismiss an employee without prior notice. These situations typically involve serious misconduct or actions that fundamentally breach the employment relationship. The grounds include:

  1. Submission of False Identity or Forged Documents
    If an employee assumes a false identity, nationality, or submits forged certificates or documents during recruitment, the employer has the right to terminate the employment immediately.
  2. Serious Financial Loss to the Employer
    If the employee commits an error that results in substantial material loss to the employer or if he deliberately damages the properties of the employer and acknowledged the same. Note that the employer must inform MoHRE about the incident within seven working days from having knowledge of the same
  3. Violation of Workplace Safety Instructions
    Where an employee deliberately violates workplace safety rules that are clearly communicated and displayed, and such violation results in serious consequences, termination without notice may be justified.
  4. Failure to Perform Basic Duties
    If an employee repeatedly fails to perform their fundamental job duties despite written warnings and disciplinary measures, the employer may resort to immediate dismissal.
  5. Disclosure of Confidential Information
    An employee who discloses confidential information related to the establishment’s industrial or intellectual property, resulting in damage to the employer, loss of opportunity, or personal gain for the worker.
  6. Intoxication at Work
    If the employee is found to be drunk or under the influence of prohibited drugs during working hours, or commits an action breaching the public morals at the workplace.
  7. Assault or Physical Violence
    An employee who assaults the employer, supervisor, or colleagues in the workplace may be dismissed immediately.
  8. Unauthorized Absence
    An employee who is absent without a valid reason for more than 20 intermittent days or more than 7 consecutive days in a year may also face termination without notice.
  9. Exploitation of the position

If the employee exploits his position unlawfully to obtain personal gain

  1. Joins another establishment

If the employee joins another establishment without abiding by the rules and procedures in this regard.

Procedural Requirements

Although the law allows termination without notice in the above situations, employers are still expected to follow fair procedures. This generally includes conducting an internal investigation, documenting evidence, and ensuring that the termination is based on legitimate grounds under the law.

Failure to comply with legal procedures may expose the employer to claims of arbitrary dismissal, potentially resulting in compensation to the employee.

Rights of the Employee

Even in cases of termination without notice, employees may still retain certain rights depending on the circumstances, such as:

  1. Payment of outstanding wages
  2. End-of-service benefits (unless dismissal involves circumstances affecting entitlement)
  3. Any other contractual dues

Employees who believe they have been unfairly dismissed may file a complaint with the Ministry of Human Resources and Emiratisation (MOHRE), which initially attempts to resolve disputes amicably before referring unresolved matters to the labour courts.

Conclusion

Termination without notice is an exceptional remedy under UAE labour law and is strictly limited to cases involving serious misconduct or breach of trust. Employers must exercise this power cautiously and ensure that dismissals are supported by valid grounds and proper documentation. At the same time, employees should remain aware of their obligations under the employment contract and workplace regulations to avoid conduct that could justify summary dismissal. A balanced approach by both parties helps maintain fairness and stability within the UAE’s employment framework.

At Ayesha Al Dhaheri Advocates and Legal Consultants, we assist both employers and employees in navigating labour disputes, understanding appeal rights, and ensuring compliance with UAE labour law. Our firm is ready to provide clear guidance and professional legal support.