Termination of Employment Contract without Notice


The general rule is that it is mandatory for an employer or employee to give prior notice while terminating an employment contract.  But there are few exceptions to it when either party to an employment contract i.e, employer and employee can terminate the contract without notice.

  • Termination of contract without notice by the employer

An employer has the power to rescind the employment agreement and oust the jobholder without giving him prior notice if the termination is based on any of the grounds prescribed in Article 120 of the UAE Labor Law. The contract would be terminated if employee;

  • opts a pseudonym or maintains false citizenship or if he used and presented forged documents.
  • It is selected for apprenticeship and displacement happened in this period or later on. 
  • Makes a mistake due to which momentous loss of employer occurs, only when the employer notified the labor department about the subject matter within the 48 hours of happening. 
  • Contravenes any of the rules related to the protection of workplace as long as rules and policies are affixed at noticeable spot
  • falls short of expectations under a contract of employment and carries on with breach of his duties regardless of inquiry and previous warning letters. 
  • reveal secrets or confidential information of the company where he is working. 
  • penalized by a court for an act of misconduct involving honor, honesty or public morals;
  • Found drunk or intoxicated or In the course of employment
  • During working hours, he attacked or threatened his fellow colleagues or associates. 
  • absconds from work without justifiable reason within one year, for more than 20 non-consecutive days, or exceeding seven back to back days.
  • Termination of contract without notice by the employee:-

An employee may bring employment contract to an end without giving formal resign or prior notice to the company or his employer, as per Article 121 of the UAE Labor Law in either of the following two situations:

  1. If the employer has not fulfilled requirements towards an employee as referred in the agreement or in the statute, like where an employer does not remunerate his employee properly or cut off his salary. 
  2. If he/she is threatened or harassed by his employer or any of his legal representatives.

If there are justified grounds for the termination, it is regarded as a legitimate termination. If the law does not pinpoint the footing of the termination, it is figured arbitrary and the employee is eligible to have indemnity under Article 16 of the UAE Labor law, 1980.

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Fatima Tariq Written by:

Fatima Tariq, a law student at Kinnaird College for Women and a political science student at the University of Punjab. Research fellow at Insaaf Camp. Follow me at https://kinniard.academia.edu/FatimaTariq