UAE Labour Law provides rights to both
employers and employees. This means both, companies and individuals need to
follow UAE Labor Law in UAE. It may not be applicable to free zone companies; however most of the free zones do
follow UAE Labour Law. One of the aspects that UAE Labour Law covers is the
Termination of Employment Contract by employers.
This is covered under the Article 120
of the UAE Labour Law.
So why, how and when
can an employee be fired or terminated by the company?
There are 10 different reasons why and when an employee can be
fired!
1.
False identity
adopted by employee or submission of forged documents;
2.
During Probation
Period;
3.
Errors by
employee results in significant material/financial loss;
4.
Employee violates
workplace safety rules;
5.
Failure to
perform basic duties as per contract;
6.
Business secrets
leaked!
7.
Judgement in
court against employee for criminal offences;
8.
Found under
the influence of alcohol during working hours;
9.
Assaults
colleagues;
10.
Absent from work
continuously for 7 days or intermittently for 20 days without informing.
Detailed explanation of
Article 120:
Here I will provide you with detailed explanations for each of
the above scenarios when can an employee be fired from company under Article 120.
1.
If the employee
adopts a false identity or nationality or if he submits forged documents and
certificates:
·
If while your
employment contract is being drawn, you have taken up a false identity or
duplicate identity and your employer becomes aware of this, you can be
terminated without any notice under Article 120. Also if you have adopted a
false nationality through forged documents like passports and if your employer
becomes aware, you can be terminated.
· When applying for your
employment/labour approval, you have to provide your educational certificates.
if you have forged your educational certificates, you are liable to be
terminated. Your company also requests your experience certificates from the
previous employers. If these are found to be forged, you will be fired as per
the rules of UAE Labour Law under Article 120. So beware of these rules and
regulations. Submitting any kind of false documents like passports, experience
certificates are also criminal offences under UAE Laws. Not only would you
lose your job, you also may be reported to court for these offences.
2.
If the employee
is appointed under a probationary period and dismissal occurred during or at
the end of the said period:
·
It is a known fact
that, during probation period, your company can fire you or terminate you
without any reason. In most cases, your company may fire you during probation
period because your on job performance has not been good. Not only for this
reason, your company can fire you for any reason or no reason at all during the
probation period.
3.
If he commits
error causing substantial material loss to the employer provided that the latter
advises the labour department the incident within 48 hours from having the
knowledge of the same:
·
If you have committed
any serious mistake that has resulted in a financial loss for your company,
then your company has the right to fire you. It is not clear from here what is
‘substantial.’ However, I believe this depends on the company type. For a small
company, substantial can mean even 10000 Dirhams. But, your company should
inform MOL within 2 days of the incident or within 2 days of having knowledge of
the incident. These type of offences are rare, however, I have heard them
happen.
4.
If the employee
violates instructions containing safety of the place of business provided that
such instructions are displayed in writing at conspicuous places and in case of
an illiterate employee the latter be informed verbally of the same:
·
UAE Labour Law, also
provides provisions for the safety and security of the work place. Every
employee should adhere to the safety standards adopted by the company. If you
have not obeyed the safety requirements, you can be terminated from your work
for negligence to adhere to such rules. This is serious offence considering
many of the companies in UAE are construction and project related. If you have
passed by any construction site, you would have noticed certain notices that
have been put up at the entrances or important places. You have to adhere by
these rules and they are up there for a reason.
5.
If he fails to
perform basic duties under the contract of employment and persists in violating
them despite formal investigation with him in this respect and warning him of dismissal
if the same is repeated:
·
When you join any
company, you are given your job description or Key Performance Index (KPI) upon
which you are evaluated. These documents mention what you are supposed to be
doing. However, if you have not been able to even perform the basic
requirements of the job duties, you can be fired under Article 120 of UAE
Labour Law. Furthermore, your company can issue warnings against you in this
regard. If you have still failed to perform you duties and requirements, your
company can fire you.
6.
If he divulges
secrets of the establishment where he is employed:
·
By virtue of your
work, you may come across information and secrets of how your business is run
and managed well. This is confidential information and should remain this way.
You are not supposed to leak or divulge this information to any 3rd party. If
your company finds out that you have leaked the company secrets, your employer
can fire you as per Article 120.
7.
If he is awarded
final judgment by the competent court in respect of an offence prejudicing
honour, honesty or public morals:
·
IF during your course
of employment, you are found to have violated certain laws and the courts
issues judgment against you, your company can dismiss you as per Article 120.
8.
If during working
hours he is found drunk or under the influence of drug:
·
This is self
explanatory! If you have been caught in the act of being drunk, intoxicated by
alcohol or any kind of drug during your working hours, you can be fired as per
Article 120.
9.
If in the course
of his work he commits an assault on the employer, the manager or any of his
colleagues:
·
Have you heard of the
news where an employee physically assaulted his manager? He was fired from
the work! Any kind of physical assault that you commit against your employer,
manager or your colleagues can lead you to get fired. This is true even during
non working hours. There are multiple cases reported in the news papers where
the company fired employees for getting into physical fights with each other.
However, I am clear as to whether, this rules contains mental or verbal
assault.
10.
If he absents
himself without lawful excuse for more than 20 intermittent days or for more
than 7 successive days during one year:
·
Whenever you take
leaves, you are supposed to inform your employer that you will be absent from
work. If you have informed or taken permission for being absent, you can be
terminated under the UAE Labour Law. It is important that you have taken a
written approval when absenting yourself from work.
What are the benefits
if you are terminated ?
If you are fired or terminated under UAE Labour Law
article 120, there are no benefits except that you will paid salary till your
last working day. You will not be paid gratuity EOSB for your services. Your
accrued leaves will be cancelled. However, you will get one way air ticket for
your journey home.
What should you do when
you are fired under Article 120?
There is little that you can do when you are fired under Article
120 of the UAE Labour Law. The rules and scenarios mentioned there are crystal
clear as to the offences that Ministry of Labour considers serious. Hence, you
should familiarise yourself with the scenarios under which you can be
terminated and avoid committing these offences.
However, it should be clearly established that you have
committed the offence. If you have not committed any offence mentioned under
Article 120 and are terminated, you may file a complaint with MOL. All the
communication should be in writing and officially signed by employer/company.
I am sure you have learnt something new through this post. Let
me know what do you think about this. Comment below your doubts.
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