Dubai Free Zones: When Can Employers Terminate Staff, and What Process Must They Follow Under UAE Employment Law?

In Dubai’s free zones, employment relationships are generally governed by the UAE Federal Decree Law No. 33 of 2021 on the Regulation of Employment Relations, unless a specific free zone has its own applicable framework. Within this legal structure, questions around unauthorised leave — particularly when an employee proceeds without approval — are addressed through a combination of statutory leave rights, employer discretion, and clearly defined disciplinary procedures.

Under the law, employees are entitled to 30 calendar days of paid annual leave for each year of service. This entitlement is a statutory minimum and reflects a core employee right. However, the timing of such leave is not left entirely to the employee’s discretion. Employers retain the authority to organise and schedule annual leave based on operational requirements, typically in coordination with employees or by rotating leave among staff to ensure that workflow remains uninterrupted. As part of this process, employers are required to notify employees of their approved leave dates at least one month in advance, reinforcing the principle that leave must be both planned and formally sanctioned.

This framework becomes particularly relevant in situations where an employee applies for leave but proceeds without receiving approval. In such cases, the absence may be treated as unauthorised, especially if it disrupts business operations or violates internal policies. While employees may cite emergencies as justification, the law places the discretion to accept or reject such reasons with the employer, subject to fairness and procedural compliance.

The law also provides employers with the right to terminate an employee without notice under specific circumstances, but this is not an unfettered power. Summary dismissal is permitted only after a written investigation has been conducted, and the decision must be documented, justified, and formally communicated to the employee. One of the grounds for such dismissal is repeated or prolonged absence without a legitimate reason accepted by the employer. Specifically, if an employee is absent for more than 20 intermittent days within a year, or more than seven consecutive days, the employer may proceed with termination without notice.

In practice, this means that an employee who takes extended leave without approval risks being classified as absent without valid justification, potentially triggering disciplinary action up to and including dismissal. However, employers are expected to follow due process. This includes issuing notices, conducting an internal inquiry, and giving the employee an opportunity to explain the circumstances — such as claiming an emergency — before arriving at a final decision.

Ultimately, the UAE’s employment framework seeks to strike a balance between operational efficiency and employee protection. While businesses are empowered to enforce discipline and ensure continuity, they must do so within the boundaries of procedural fairness and legal compliance. For employers in Dubai’s free zones, this means that terminating an employee over unauthorised leave is legally permissible, but only when supported by proper documentation, a fair assessment of the facts, and adherence to the prescribed process.

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