Arbitrary Dismissal of Employees in UAE
Arbitrary Dismissal of Employees
The UAE is known for strong labor laws aiming to establish an equal and balanced workplace. Among many areas of protection, one of the main areas of protection for employees within these regulations is the prohibition of arbitrary termination or wrongful termination. While terminating employment contracts, the employer has to conform to some legal requirements. It is very important for one facing or fearing arbitrary dismissal to understand his or her rights and the legal regime of the UAE.
What Is Arbitrary Dismissal?
Unfair dismissal, in general, denotes employee dismissal at the discretion of an employer without any adequate or proper cause or against the set UAE labor laws. According to Federal Decree-Law No. 33 of 2021 regarding the Regulation of Labor Relations, dismissal is believed arbitrary if:
Article 47, which says that if the employer has terminated the employee for:
- Filing a complaint to the MOHRE or a lawsuit against an employer whose validity is proved, such termination is considered as illegal.
- If an employee feels that he or she has been dismissed unlawfully, then they can raise a complaint in front of the Ministry of Human Resources and Emiratization (MOHRE).
The ministry would try to reach any amicable solution. In case an amicable settlement does not take place, the matter will be shifted to the concerned court.
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Legal Protection against Arbitrary Dismissal in UAE
UAE labor law extends effective protection against arbitrary dismissal to ensure employees are treated fairly. key areas involve:
1. Valid Reasons for Termination
The employer can dismiss the employee on the grounds of issues connected with his or her performance after prior warnings or regarding a violation of the internal policies and labor law.
2. Prohibited Grounds for Dismissal
These are the prohibited reasons that will make an employee’s termination illegal, such as:
- Filing complaints to the MOHRE.
- Discrimination based on disability, religion, nationality, or gender.
- Making use of legal entitlements, such as sick or maternity leave.
3. Compensation for Arbitrary Dismissal
In case arbitrary dismissal is proved, the court will rule that compensation must be paid by the employer to the worker. While determining the amount of compensation, the court shall consider the nature of the job, the extent of damage caused to the employee and the duration of his employment.
In all instances, compensation must exceed the employee’s salary for three months, to be calculated based on the employee’s last wage. Besides compensation, an employee is entitled to his gratuity, notice period dues, or any other dues he has against his employer.
Steps to Take if You Face Arbitrary Dismissal
According to Article 47 of the Federal Decree-Law No. 33 of 2021 Regarding the Regulation of Employment Relationships (Employment law), if an employee feels that his employer has terminated him or her without any legitimate reason, then the UAE may consider this as arbitrary dismissal. In such cases, the complaint shall be filed to the MOHRE, so the latter may try the amicable settlement or make the official order.
If you feel that you have been dismissed arbitrarily, the following is the procedure you can follow:
- Filing a complaint: In case you believe that you have been terminated wrongfully, you can make a complaint to MOHRE. They would try to resolve the dispute amicably between you and your employer. This is in accordance with Article 1 of the Federal Decree Law No. 09 of 2024, amending provision of the Article 54 of the Employment law.
- Authority of MOHRE: MOHRE has been authorized to settle disputes and order on employment matters, which involves cases whose disputed value does not exceed AED 50,000. It implies that your case might be settled by MOHRE without the court’s intervention in case this falls within this limit.
- Legal Procedure:
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- Dispute Resolution: MOHRE will check your complaint and take necessary measures to settle it amicably.
- Jurisdiction: They can make decisions regarding disputes not exceeding AED 50,000 or in cases where either party fails to comply with a previously issued amicable settlement decision.
- Execution of Judgment: The parties may then file a case in court if either party does not agree with the decision given by MOHRE. This may be done within 15 working days. A hearing will be scheduled by the court within three working days and the final judgment given within 30 working days. Until the final judgment by the court, MOHRE’s order may be put on hold.
- Prolonged Conflicts: In such a case, MOHRE may instruct the employer to pay your salary for two months in advance, should your wages have been withheld. The provision ensures that, during the dispute resolution process, employees are protected financially.
Employer Responsibilities Under UAE Law
Employers must:
- Provide Valid Justification: The grounds for termination should be valid and work-related.
- Observe Notice Period Rules: Give a notice period as stated in the contract, usually 30 to 90 days.
- Settle Employee Benefits: Pay all end-of-service benefits, including gratuity and salaries due.
How Our Lawyers Can Help
Going through all the legal hurdles concerning arbitrary dismissal is a challenge. Our experienced employment lawyers in the UAE provide you with personalized legal support in your efforts to defend your rights. We can:
- Evaluate the merits of your case and advise you accordingly on the way forward.
- Act as your representative during court cases and mediation sessions.
- Negotiate fair compensation or reinstatement on your behalf.
Contact Us for Legal Support
We are experienced employment lawyers who will assist you with drafting a complaint and defending your rights to trial in the instance of an unlawful termination.
You deserve to have your rights asserted and receive the compensation entitled to you, so reach out today.
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,
- 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.
- 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.
