As per UAE Labour laws an employer can’t terminate contract without notice for reasons outside Article 120 of Labour Law
An employee working in the UAE cannot be terminated from his services while he is on annual leave.
If an employer does dismiss a member of his staff while s/he is officially on leave, it may be considered an arbitrary dismissal and the affected employee can take course to legal action.
“It is not permissible to dismiss or serve notice on an employee during annual leave. Where an employer does dismiss or serves notice, it will be possible to challenge the dismissal or notice as being void,” Jamie Liddington, head of employment at Hadef & Partners, told Emirates 24|7.
However, Liddington adds if “the reason for termination is one of the ten reasons set out under Article 120,” the employer can act against his member of staff.
If the employer terminates the contract for reasons that are outside Article 120 of the Labour Law, he will be liable to pay compensation to the employee. This compensation is determined on the basis of the wages due for a period of three months or for the remaining period of the contract, whichever is less, unless an article in the contract states otherwise.
As per the website www.laborlaw.com in Article 120 the employer may dismiss the employee without notice in the following cases:
Courtesy: Angel Gulf Jobs