Arbitrary Dismissal of Employees
Terminating employment contracts and arbitrary dismissal in Dubai, Abu Dhabi, Sharjah, Ajman, UAE
Arbitrary dismissal in the UAE occurs when an employer terminates the contract of employment in a way that is unfair, arbitrary, or against UAE labour law. According to Federal Decree-Law No. 33 of 2021 (UAE Labour Law), a termination is regarded as arbitrary or unlawful if it occurs due to an employee filing a serious complaint with MOHRE or commencing a serious lawsuit against the employer. At HHS Lawyers, our labour lawyers provide full support for employees facing arbitrary dismissal, including:
- Checking the dismissal letter to make sure it is lawful.
- Representation and filing of complaints with MOHRE’s Twasoul (Tawasul) platform.
- Calculating all legal entitlement for arbitrary dismissal compensation, notice pay, end-of-service gratuity, etc.
- Drafting legal notices and memoranda for UAE Labour Courts.
- We will guide you on the arbitrary dismissal requirements under the UAE labour law.
What is Arbitrary Dismissal in the Dubai, Abu Dhabi, Sharjah, Ajman, UAE?
In simpler words, an arbitrary dismissal is when an employer dismisses an employee as a result of retaliation (as punishment for exercising their legal rights). In Pursuant to Article 47 of the UAE Labour Law, a termination is “unlawful” or “arbitrary” in particular if the worker is dismissed because they:
- Filed a complaint against the employer with the Ministry of Human Resources and Emiratisation (MoHRE).
- Filed a lawsuit against the employer that is proven valid.
Essentially, if your employer terminates you as “revenge” because you asked for your legal rights or reported them for a violation, the law is on your side.
Employee Protection from Arbitrary Dismissal in UAE
The laws against arbitrary dismissal in the UAE are created to keep the labour market fair and balanced. The laws establish a system which provides:
- Employee rights protection: Workers can request their legal rights, such as unpaid wages or safe working conditions, without fear of being dismissed as punishment.
- Employer responsibility: Companies must follow proper legal steps and provide clear proof before terminating an employee.
- Stability in the job market: The job market maintains its stability through established regulations which safeguard workers from unexpected job terminations, thus strengthening the UAE’s stable employment environment.
When a court determines that an employee’s dismissal was arbitrary, the employer must pay financial penalties, and the employee will receive additional compensation beyond their standard end-of-service benefits.
Requirements to Prove Arbitrary Dismissal
To prove arbitrary dismissal in the UAE, an employee needs to show certain evidence and meet specific conditions. These usually include:
- Valid Complaint or Lawsuit: Proof that the employee filed a complaint with MOHRE or submitted a case to court before the termination.
- Termination Notice: A formal letter, email or other documented communication showing that the employer ended the employment.
- Retaliatory Intent: Evidence that shows that the employer has terminated an employee because they made a complaint, and not because of a real work‑related reason.
- The employment contract: A MOHRE-registered contract copy is required which validates the job terms, salary and employment details.
For more guidance on filing claims related to arbitrary termination, refer to our detailed overview filing arbitrary dismissal claims in the UAE.
How to File a Complaint for Arbitrary Dismissal
The UAE has a specific process that must be followed to resolve these disputes:
- Amicable Settlement (MOHRE): The employee must first file a complaint with MOHRE. The Ministry will take 14 days to resolve the conflict between the employer and employee.
- Binding Resolution: The MOHRE has the authority to issue a final and binding decision on any dispute submitted to it if the value of the claim is not more than AED 50,000, or if neither party fails to comply with an amicable settlement decision relating to the subject matter, regardless of the value of the claim.
- Case Referral: if the disputed claim is more than AED 50,000 and the parties cannot agree on a resolution, MOHRE must refer the case to the judiciary.
Judicial Ruling: The court examines the evidence. The court will order the employer to pay damages if it decides that the dismissal was done without proper cause.
Your Rights and Benefits After Dismissal
After a termination, employees still have important rights. Whether the termination was fair or an arbitrary dismissal in UAE, you are usually entitled to the following benefits:
- Notice Period Pay: The employer must pay your entire notice period if you were dismissed without proper notice on grounds that did not qualify as gross misconduct.
- End‑of‑Service Gratuity: Employees who work for more than one year are entitled to receive gratuity payment.
- Employees receive 21 days of basic salary for each of the first five years.
- Employees receive 30 days of basic salary every year after five years.
- Unused Leave Pay: Employees will receive payment for all annual leave days they earned but chose not to take.
- Repatriation Ticket: A flight ticket back to your home country, unless you transfer to another job within the UAE.
- Final Settlement: Employers must pay all your outstanding dues within 14 days after your last working day.
Protecting UAE Nationals (Emiratisation)
The UAE National law requires employers to follow specific legal procedures before they can terminate Emirati workers.
An employer cannot terminate a UAE National employee without following strict legal procedures. The company needs to inform MoHRE about the Emirati employee termination before they start their dismissal process. The Ministry will review the reason to make sure the termination is fair and legal.
Companies may face heavy penalties when they dismiss UAE Nationals just to avoid “Emiratisation” targets which include fines up to AED 1 million.
Common Mistakes and Rejection Reasons
| Mistake | Consequence |
| Missing the 2-year filing deadline | The claim will not be considered after two years from the termination of the employment relationship (Article 54(9)). |
| Lack of written warnings | Employers often lose cases because they didn’t provide two written warnings before dismissal for performance. |
| Confusing “Notice” with “Arbitrary” | Serving a notice period for a legitimate reason is not arbitrary dismissal. |
| Accepting a final settlement | Signing a document stating you have received all dues may prevent you from claiming further compensation. |
Frequently Asked Questions
What is arbitrary dismissal in the United Arab Emirates?
Arbitrary dismissal or wrongful termination usually refers to the act of an employee being dismissed without cause or in violation of UAE labor laws, such as lodging a complaint or simply on account of asking for any of their statutory or legal rights.
How do I prove arbitrary dismissal?
You may prove arbitrary dismissal by providing evidence that the termination was either unjustified or in violation of employment laws, such as emails, letters of discharge, or witnesses.
For wrongful termination, how much compensation am I entitled to?
The amount of compensation shall be defined by taking into account the work type and the amount of damage caused to the worker and his service term. It is required in all cases that the amount of compensation does not exceed the worker’s wage for a period of (3) three months, calculated according to the last wage he was obtaining. Further, the employee also entitled to obtain a notice period allowance and end of service benefits payable to him.
What is the maximum compensation for arbitrary dismissal?
The court will assess the value of compensation taking into account the type of work, the extent of damage caused to the worker and the duration of his employment. In all cases, the amount of compensation must not exceed the wage of the employee for a period of three months, calculated on the basis of the last wage he was entitled to.
Can my employer dismiss me while on probation?
As provided under the new UAE labor law, the employer is allowed to terminate an employee even during probation period by giving a 14 day notice period.
Can I be dismissed during my probation period?
Yes, an employer can terminate you during probation, but they must provide at least 14 days’ written notice. The company can terminate employees during this period, but they cannot use discriminatory practices to do so.
Does arbitrary dismissal compensation include my gratuity?
No. Compensation for arbitrary dismissal is separate. You will still receive your end-of-service gratuity, notice period pay, and payment for unused annual leave.
How long do I have to file a complaint after being dismissed?
You should file your complaint with MOHRE as soon as possible. However, according to Article 54 (9) of the UAE Labour law, all claims concerning any right arising under the law shall not be considered after two years of the termination of the employment relationship.
Can my employer cancel my visa during a labor dispute?
Usually, the employer is not allowed to cancel the work permit during the labour dispute proceedings before the courts, except with the agreement of the employee or a court order.
Do I need a lawyer for a MOHRE complaint?
You can file the first complaint yourself, but having a legal consultant helps ensure your evidence is correct and your compensation is calculated properly under the latest UAE labour rules.
How long does it take to resolve a lawsuit involving arbitrary dismissal?
The Mohre has the competence to settle a dispute falling within its competence and issue an order in an employment dispute. Furthermore, the Mohre’s decision in an employment dispute can be enforced. The parties can file a case within 15 working days from the notification of the Mohre’s decision before the competent court of first instance. The court shall conduct a hearing within three working days and render a final decision within 30 working days.
Services Offered by HHS Lawyers
Dealing with labour dispute resolution can be difficult when you lack knowledge about legal matters. At HHS Lawyers & Legal Consultants, our labour lawyers offer legal services across the UAE for more than 25 years. We provide you with guidance together with legal protection in cases of arbitrary dismissal that occur in the UAE.
Our Services include but not limited to:
- Legal Advice: We review your case and explain whether your termination is considered “arbitrary” under the latest UAE labour rules.
- MoHRE Representation: We assist you with your complaint submission process while we handle all communication with MoHRE on your behalf.
- Labour Court Litigation: Our licensed UAE lawyers represent you in court to secure your compensation, gratuity, and all legal entitlements.
- Document Review: We check your employment contract and termination letter for any illegal or unfair terms.
- Calculation of Benefits: We calculate everything you are owed, including notice pay, unused leave, and gratuity.
- Employer Support: We help firms with taking proper termination steps so that you do not face a dispute from the worker. As this will result in paying hefty amounts as compensation.
Contact Us Today
Don’t give up your rights due to insufficient information. Our labor law specialists will assist you in your case to achieve the justice that you rightfully deserve.
