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The Daily Insight

What is Article 127 in UAE Labour law?

Author

Lily Fisher

Updated on February 26, 2026

What is Article 127 in UAE Labour law?

Article 127 of the Labour Law provides that where an employee performs a role which allows them to become acquainted with confidential information, the employer may put in place an agreement or include in the employment contract a provision which prevents an employee from working with a competing business after …

What is Article 131 in UAE Labour law?

Article 131 – The employer shall , upon the termination of the contract , bear the expenses of repatriation of the worker to the location from which he is hired , or to any other location agreed upon between the parties .

Can I resign without notice in UAE?

An employee may resign by providing the employer with the contractual notice period (which must be a minimum of 30 calendar days, or longer, as per the contract of employment). Alternatively, the employee may resign without notice as set out under Article 121 of the law.

Can I resign after 6 months in limited contract?

Can a person with a limited contract resign in the UAE? Yes, you can resign if it has been previously agreed upon by your employer in writing.

What is non-compete?

Non-competes restrict where and when you can work after leaving your current job. Such agreements prohibit an employee from working for a competitor or from starting her own competing business within a geographical area for a certain period of time after leaving her job – usually between six months and two years.

How long is a non-compete clause?

In most cases, non-compete agreements with a duration of six months or less are considered reasonable, whereas those lasting over two years are not. When enforcing a non-compete agreement, the court will also look at other factors, such as geographical restrictions and the specific business interests at hand.

How do I terminate Article 120?

Article 120 of the UAE Labour lays out the reasons for which termination without notice is lawful. If an employee believes that he has been dismissed illegally, he can complain to Ministry of Human Resources and Emiratisation. The ministry will try to solve the issue amicably.

What is the Federal Law No 8 of 1980?

Employment laws and regulations. Federal Law No. 8 of 1980 also known as the Labour Law as amended, governs the labour rights of employees in the private sector. It applies to all employees working in the UAE, whether UAE nationals or expatriates.

What happens if I don’t complete my notice period?

An employee that refusing to work the notice period detailed in their contract is technically in breach of their contract and they should be reminded of that. However, the only immediate consequence is the employer does not have to pay the employee for any part of the notice period not worked.

When can an employee be terminated without notice?

Under The Delhi Shops and Establishments Act of 1954, an employer cannot terminate an employee who has been with the corporation for more than three months without giving the employee at least 30 days of notice or a salary in lieu of such notice.

Is it better to resign or be terminated?

It’s theoretically better for your reputation if you resign because it makes it look like the decision was yours and not your company’s. However, if you leave voluntarily, you may not be entitled to the type of unemployment compensation you might be able to receive if you were fired.

Is there ban on limited contract in UAE?

In case of a Limited Contract: Article 128 of the Labour Law states that if a non-national employee resigns the work without any valid reason before the completion of the term of the employment contract, can be imposed with a labour ban for one (1) year from the date of resigning the work.