Bassam Za’za’, Legal and Court Correspondent
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.





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