I have worked in the sales department of a company on a limited contract for more than two years. A month ago, I had a problem after the management accused me of being negligent in my duties thereby causing a huge loss to the company. I was asked to resign, or face dismissal under Article 120 of the UAE’s Labour Law. I refused to resign and the management threatened to file a police complaint. Eventually, the management took the matter to the Ministry of Human Resources and Emiratisation and filed a complaint citing my mistake. The company then terminated my contract. Is this legal?


Paragraph C of Article 120 of the UAE’s labour Law lists the circumstances under which an employer may dismiss a worker without notice. These conditions include: If a worker makes a mistake resulting in substantial material loss to the employer, on condition that the latter notifies the Labour Department at the Ministry of Human Resources and Emiratisation of the incident within 48 hours of becoming aware of its occurrence.

Therefore, as per the law, termination of the questioner’s contract is unjustified.

Finally, the questioner has the right to file a counter complaint against the employer in the ministry and claim end-of-service benefits apart from compensation for arbitrary dismissal.



I have worked in a company for two years on an unlimited contract. A month ago, I submitted my resignation and am currently serving my notice period of two months as stipulated in the labour contract. My employer claims I need to work for another month till I recover all dues from one of the company’s clients. I don’t think that this is my responsibility. If my notice period exceeds more than two months in this case, I might lose my new job offer. As per the UAE Labour Law, how do I calculate my end-of-service gratuity since I have worked for two years. Do I need to work for two months or one month only as per the UAE labour Law. My employer told me that my end-of-service gratuity shall be calculated on the basis of 1/3 of the basic salary since I am the one who submitted my resignation and my service is less than three years as per my employer. Does the UAE Labour Law allow an increase in the notice period above one month which is mentioned in the labour law? Please advise.


I would like to clarify to the questioner that the Federal Labour Law No. 8 of 1980, article No. 137 stated the following: “Where a worker who is bound by a contract of unlimited duration leaves his work of his own accord after continuous service of not less than one year and not more than three years, he shall be entitled to one-third of the severance pay provided for in the preceding article; where the continuous period of service exceeds three years but does not exceed five years, he shall be entitled to two-third of such severance pay; where the continuous period of service exceeds five years, he shall be entitled to the full severance pay’. As for the notice period of two months as mentioned by the questioner, the same is in accordance with the Labour Law and the questioner agreed on such period. Notice period as per the UAE Labour Law is 30 days only and the parties may not agree to reduce the period of notice, but may agree to increase it. Therefore, the questioner shall comply with the period stated in the employment contract. Finally, the employee is not entitled to work for more days than the notice period mentioned in the labour contract.


Questions answered by advocate Mohammad Ebrahim Al Shaiba of Al Shaiba Advocates and Legal Consultants.