Fired Without Valid Reason In UAE? How To File Complaint, Seek Compensation

(MENAFN- Khaleej Times) Question: What constitutes arbitrary dismissal in a mainland UAE company? If I believe I have been unfairly dismissed, what is the process for challenging it? Where can I file a complaint and what compensation or outcome could I expect if the court rules in my favour?

Answer: Since you are employed by a mainland UAE company, your employment is governed by Federal Decree-Law No. 33 of 2021 on the Regulation of Employment Relations (the Employment Law), along with Cabinet Resolution No. 1 of 2022 on its implementation.

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In the UAE, an employer may terminate employment of an employee for a valid reason by serving stipulated notice period as mentioned in the employment contract of an employee. This is in accordance with Article 43 (1) of the Employment Law, which states:

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“Either party to an employment contract may terminate the contract for good cause by giving the other a notice in writing. The employee shall perform his duties during the notice period agreed upon in the contract, provided that the notice period is not less than 30 (thirty) days and not in excess of 90 (ninety) days.”

However, an employer may not terminate an employee without a valid reason. In the event, an employer terminates employment of an employee without a valid reason, such termination may be considered as arbitrary termination. This is in accordance with Article 47(1) of the Employment Law, which states:

“1. A dismissal of an employee by his employer shall be arbitrary if the employee submits a serious complaint to the Ministry or files an action proven to be valid against the employer."

Further, if a court finds that a dismissal was arbitrary, an employer may be required to pay its employee fair compensation. The competent court will determine the amount based on the employee's type of work, the harm suffered and length of service, but the compensation shall not exceed three months' salary based on the employee's last salary. This is in accordance with the Article 47 (2) of the Employment Law, which states:

“2. The employer shall pay the employee a fair compensation estimated by the competent court, if it is found that the dismissal is arbitrary pursuant to paragraph (1) above.

The amount of compensation shall be determined based on the type of work, the extent of harm sustained by the employee and the length of his service. In any case, the amount of compensation shall not exceed (3) three month's salary of the employee calculated based on the last salary received by him.”

However, this compensation is in addition to any pay in lieu of notice and end-of-service/severance benefits due to an employee under the provisions of the Employment Law. This is in accordance with the Article 47(3) of the Employment Law:

“3. The provisions of paragraph (2) above shall not prejudice the right of employee to the pay in lieu of notice and severance pay due to him under the provisions hereof.”

Based on the aforementioned provisions of the law, if you feel that your employer has terminated your employment without a valid reason, you may consider filing a complaint with the Ministry of Human Resources & Emiratisation (Mohre) seeking compensation for arbitrary termination along with other end of service entitlements from your employer.

Based on your complaint with the Mohre, the Mohre may attempt to amicably settle the dispute between you and your employer. In the event there is no amicable settlement with your employer before the Mohre then you may file an employment case against your employer in the court which has jurisdiction in the UAE.

Applicable laws:

1. Federal Decree-Law No. 33 of 2021 on the Regulation of Employment Relations.

2. Cabinet Resolution No. 1 of 2022 on the Implementation of Federal Decree -Law No. 33 of 2021 Regarding the Regulation of Employment Relations.

Ashish Mehta is the founder and Managing Partner of Ashish Mehta & Associates. He is qualified to practise law in Dubai, the United Kingdom and India. Full details of his firm on: Readers may e-mail their questions to:... or send them to Legal View, Khaleej Times, PO Box 11243, Dubai.

Disclaimer: The information provided above is intended for general guidance and does not constitute legal advice. It is recommended to seek formal legal counsel.

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