Demystifying Article 120: What UAE Employers Need to Know

First off all we are here, you don’t need a law degree to run your HR, we are here to walk you through exactly what Article 120 is.

When it comes to managing staff in the UAE, Article 120 of the Labour Law is one of those things that can keep business owners up at night.

But don't worry, we've got your back.

Firstly what is Article 120?

In essence, it outlines the circumstances under which you can terminate an employee without notice or end-of-service benefits.

Like all employment laws globally The UAE labour law can be complex, and Article 120 is no exception.

What exactly is Article 120?

It specifies situations where immediate employee termination is permissible.

This is about serious infractions, things like identity fraud, causing substantial material loss, or being intoxicated on the job.

Crucially, you need concrete evidence.

Accusations alone won't suffice in a legal context.

You might be wondering, "How does this actually play out in the real world?"

Here are some practical scenarios.

An employee arrives at work visibly intoxicated. Isn’t that a clear violation of Article 120?

Yes it is but pause before you start drafting that termination letter. Make sure you gather and continue to gather evidence. Documentation is crucial when it comes to Article 120 terminations.

Documentation could be a written report from their manager, statements from colleagues, CCTV footage etc.

Another common scenario as an example is an employee sharing confidential information with your competitors.

You can't outright accuse them and consider the matter settled. Again like the example before you need proof, emails, screenshots, witness statements.

The more evidence you have, the stronger your position.

As the employer do not want to find yourself on the wrong side of a labour dispute. 

Whilst Article 120 isn't a catch-all solution for employer-employee conflicts. It's a serious measure for severe offense, it is your job as the leader to ensure that you are applying it correctly.

It is suggested that in all the cases above and when you feel you are operating around article 120 that you document everything from performance issues to disciplinary actions, maintain detailed records. They may prove invaluable in the future.

You can also Consider issuing warnings before resorting to termination. While this is not always mandatory under Article 120, it can strengthen your position if the situation escalates.

If you are feeling nervous or want clarity on how you can best manage the situation consult with internal or external HR or legal experts before taking action.

A minor oversight can have significant consequences in the long run.

Whilst these issues are serious, it’s also to remember you have a duty of care to your employees so depending on the circumstance, termination should always be a last resort. Explore all other options first, like additional training, help them with their issues or reassignment.

Quite often you will find a measured approach can prevent numerous complications.

We completely understand that dealing with UAE labour law can feel overwhelming. With the right knowledge and approach, you can protect your business while ensuring fair treatment of your employees.

If you need more guidance on Article 120 or other aspects of UAE labour law, we are here to support you through these sometimes murky waters.

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