Article 121 UAE Labour Law talks about the termination, notice period of the employee

The new Labour Law is in charge of regulating the employee practice elevating it to a high standard. Subsequently, its objective is to promote industrial growth and an efficient labour market. With new additions like the Article 121 of the UAE Labour Law, we can see now how the authorities are looking to protect and increase productivity in the labour field.

In this article, we will be explaining the Article 121 of the UAE Labour Law and how important it is in the contract termination and notice period. The UAE Labour Law is doing its best to balance and establish the same rights for employers and employees alike. Let us take a look at:

1. Why is it necessary to provide notice time in all employment contracts?

2. When can a staff member depart without giving notice?

3. What is the difference between new and old laws for termination without notice according to Article 121 of the UAE Labour Law?

4. Is temporary suspension permissible under the new UAE Labour Law?

5. How can Connect Legal help you deal with contract termination?

1. Why is it necessary to provide notice time in all employment contracts?

Because both the workers and the employers are the ones making that particular decision, a notice period is a requirement for all employment contracts. When an employee resigns, they must either serve the required notice time or provide a compensation payment. This is true unless the employer issues a written statement terminating the notice period for any reason.

Therefore, only if both parties agree or if they satisfy the conditions of the Article 121 of the UAE Labor Law, then they can terminate the contract’s notice period. The final scenario allows employees to abandon dangerous workplaces. This is due to the recent changes in the UAE Labour Law.

1.1 How long should the notice period be according to Article 121 of the UAE Labour Law?

The Article 121 of the UAE Labour Law establishes that the notice period must be at least 30 days (Article 117). However, the parties may agree to a longer notice period, but it cannot be less than that. As a result, if both parties agree to serve a two-month notice, they can do so unless one of them does not accept this term.

If the employee decides to stop working for a certain company, they must continue their duties for the total notice period unless they invoke Article 121 of the UAE Labour Law.

1.2 What happens if one party does not provide the necessary notice period?

If a worker decides to cancel a contract without providing the agreed-upon notice period or agreeing to a reduction in service debts equivalent to the notice period, they may be forbidden from working in the United Arab Emirates for a year.

This can occur when the employer submits an official claim to the Ministry of Human Resources and Emiratisation. Nonetheless, if the worker considers that the allegations are unfair or incorrect, they can ultimately file an appeal. Then, a court of competent jurisdiction will review it.

The same is true if the employer terminates the contract without providing notice or paying the notice period. In that instance, the worker would be the one to file a claim with the appropriate authorities.

Only under the Article 121 of the UAE Labour Law, it is possible to terminate contracts without having to face legal consequences or other issues from the local government after.

1.3 Is the notice period different for limited contracts?

If the worker is under a limited contract, they cannot terminate it with or without notice before the contract period finishes. Consequently, according to the business owner’s complaint, if the employee terminates the contract prematurely, they can end up with a ban from working for up to a year.

This is the main reason why being aware of the Article 121 of the UAE Labour Law is vital. It states that in the case that a staff member is suffering from harassment or mistreatment, they can leave their job. In addition, they will not suffer any consequences if they do not provide the necessary notice period.

Would you like to learn the difference between limited and unlimited contracts? Check out insights section and find many answers related to the UAE Labour Laws.

2. When can a staff member depart without giving notice?

There are several situations in which an employee can quit their job without a cause and not face any legal consequences. Article 121 of the UAE Labour Law specifies two situations:

• If the organization fails to honor its legal or contractual responsibilities with them.
• If they suffer from assault by the employer, the company, or their legal representation.

2.2 When does the notice period begin as stated by Article 121 of the UAE Labour Law?

According to the new UAE Labour Law, the notice period starts on the day the individual submits or delivers the resignation. A worker’s resignation is effective the day they give it to their employer. It is important to note that consent of the company is not necessary. Resignation by email is also legal as long as it is possible to verify the email’s delivery.

Only under Article 121 of the UAE Labour Law, the notice period can be dismissed.

2.3 What happens if an employee is obligated to work after they provide their leave notice?

According to Article 121 of the UAE Labour Law, a worker must fulfill the requirement of their notice time stated in their contract. The law deems it criminal for an organization to force a person to stay on the job after the proper notice period finishes or until substitute appointments take place.

The employer cannot prevent the employee from canceling the agreement, and must pay or repay any dues according to the UAE Labour Law. The worker does not have to plead under Article 121 of the UAE Labor Law in this circumstance. Consequently, they are free to go after their notice period officially expires.

3. What is the difference between new and old laws for termination without notice according to Article 121 of the UAE Labour Law?

As Article 121 of the UAE Labour Law establishes, the Article No. 44 of the new UAE Labour Law talks about the prompt discharge of staff members without any notice. It identifies ten different circumstances or events in which a business can terminate or dismiss an employee. Let us observe:

• If a staff member submits fake information such as documentation or academic certifications.
• When an employee makes a serious mistake that brings losses to the employer as a consequence; or intentionally damages the business’ property. In this case, the employer must notify the Ministry of Human Resources about the particular circumstance. They must do this within seven working days of knowing about the issue.
• In case the worker breaks the organization’s labour guidelines and regulations (in accordance with the Labour Law) or safety precautions on purpose.
• If the staff member cannot execute their tasks as their contract specifies, notwithstanding two cautionary letters sent by the business owner and a documented inspection against this particular employee.
• When a worker discloses delicate information about intellectual or commercial property. Subsequently, causing a loss of opportunities for the company and a personal gain for the staff member.
• In case an employee does an action against public decency at the workplace or is under the effects of alcohol or a narcotic drug.
• If a staff member verbally, physically, or psychologically attacks a coworker, manager, supervisor, or any other member of the company.
• When an employee does not come to work for more than 20 non-consecutive days a year or seven successive days with no explanation.
• In case a staff member exploits their position for profit and personal advantage.
• If the employee joins another organization without following the proper requirements for it.

3.1 Other distinctions with the UAE Labour Law

Article 121 of the UAE Labour Law allows for a quick termination. Similarly, the previous Federal Law’s Article 120 covered the circumstances for a similar quick termination. The following are some significant differences between the provisions for summary dismissal in the new UAE Labour Law and those in Federal Law No. 8 of 1980. Let us see:

The new UAE Labor Law lays forth the procedures to trail in the case of a worker’s dismissal with no legal cause. If an employee fails to fulfill their contractual commitments, the employer must conduct a formal investigation and issue two separate written warnings to the employee. Under the previous Labour Law, there was no requirement for two warning letters.

A worker may be fired during or after their probation period, according to Article 120 of Federal Law No. 8 of 1980. The UAE Labour Law distinguishes the probationary period and specifies how the contract of employment can be terminated. This situation no longer warrants the employee’s immediate firing.

The new UAE Labor Law stipulates that an employer cannot deduct an employee’s end-of-service gratuity if the person is facing immediate dismissal. Previously, the situation was different if an employee was let go under Article N. 120 of Federal Law No. 8 of 1980. In such conditions, the employee could not be eligible for a termination incentive.

4. Is temporary suspension permissible under the new UAE Labour Law?

The UAE Labor Law, Article N. 40, addresses momentary employment suspension. Likewise, the interim suspension was covered under Article 112 of the previews Federal Law. Unlike Article 121 of the UAE Labour Law, this new Labour Law specifies the mechanism by which an employer may temporarily suspend an employee.

According to the UAE Labor Law, an employer may suspend an employee for up to thirty days to conduct a disciplinary investigation. Therefore, during this time, the individual will be under work prohibition but will get half of their regular pay.

Also, in accordance with Article 121 of the UAE Labour Law, if there is consistent proof of the infraction against the individual, they may be eligible to compensate for the suspended time. In contrast, Federal Law No. 8 of 1980 does not indicate that the employee will be paid half wage while the company conducts an investigation.

Finally, according to Article N. 40.2 of the new UAE Labour Law, if the employee is found not guilty by the relevant judicial authority or the investigation is terminated, the worker must come back to work and receive any pending wages during the suspension time.

4.1 Start and culmination of the suspension period according to Article 121 of the UAE Labour Law

This is significant since the Federal Law No. 8 of 1980 does not impose a deadline on the company to complete the investigation. It further says that the suspension period starts the day the incident is reported to authorities. Subsequently, it ends when the authorities reach a decision on the matter.

The UAE Labour Law allows for suspension from the day of accusing the worker of committing a criminal violation. On the other hand, the previous law allows for removal from the moment if alerting the proper authorities. A formal claim of a criminal offense usually passes through the legal Public Prosecution.

In contrast, under Article N. 112 of Federal Law No. 8 of 1980, an employee’s claim to their wages during a period of suspension is grounded on the employee establishing that their dismissal was the consequence of their employer’s arbitrary action. Some may use Article 121 of the UAE Labor Law to file a claim against the business owner.

In other words, even if the Public Prosecution determines that there are not valid reasons for starting a criminal investigation against the employee, the employee used to have the responsibility of demonstrating that the employer knowingly created the labour complaint. The worker is no longer required to prove that their employer behaved deliberately under the new UAE Labour Law.

5. How can Connect Legal help you deal with contract termination?

You may be perplexed when it comes to contract termination, notice periods, and keeping up with the current UAE Labor Law. For this reason, having access to the best legal advice is key. In this way, Connect Legal is a platform that allows you to find top legal experts to assist you with any legal situation.

We have access to the greatest labor lawyers in the UAE. From property purchases to criminal law, we have all the knowledge and expertise. When a legal professional handles any legal procedure for you, they will make the process go smoothly.

Do you want our professional lawyers to help you deal with any legal inconvenience in the UAE? Contact us at Connect Legal to know more about Article 121 of the UAE Labour Law and other topics. You can talk with one of our representatives by calling at +971 43 316 688 or emailing us at [email protected].