Unfair and arbitrary dismissal of employees in UAE, according to the UAE Labour Law, takes place when an employer terminates an employee or forces him to resign without any justifiable reasons. In the UAE considering all free zones in the UAE private businesses are required to follow UAE Federal Law No. 8 (1980), Labor Law (UAE), which states the foremost enactment with respect to employment matters in the UAE. The Labor Law in UAE governs all sorts of issues that may arise between the employee and employer. Wherein, Employment Lawyers of Dubai will discuss the aspects of arbitrary termination of employees across UAE.

We can say that arbitrary dismissal is also called “unfair termination” when an employer chooses to lay off his employee without any valid reason. This practice is strongly prohibited in UAE Labor Law. Thus, it is known as an arbitrary dismissal, therefore this allows the employees to register a case or complaint before the labor courts for seeking compensation for the arbitrary termination. So, it is important for all the employees to understand the scenarios where your termination can be considered arbitrary.

The maximum amount of compensation that can be given to an employee in cases of such type of Unfair and arbitrary dismissal of employees in UAE, according to the UAE Labour Law, takes place when an employer terminates an employee or forces him to resign without any justifiable reasons. is three months. On the basis of the last full salary withdrawn by the employee. Also, the court may also consider any additional bonus the employee used to receive during his employment as part of the monthly salary. However, the amount of compensation will be calculated by the court along with the cost of initiating the court procedure.

As per Article 123 of the Labour Law of  UAE, if it proved to be arbitrary dismissal, the court has the right to order the employer to pay a compensation amount to the employee. The court will assess the value of compensation taking into account the type of work, the amount of damage incurred to the employee, and the duration of the employment. In all cases, the amount of compensation must not exceed the three-month wage of the employee, which is calculated on the basis of the last wage the worker is entitled to.

The laws for arbitrary dismissal of employees are minimal but clearly explain that how a disciplinary procedure should be conducted.  In accordance with Article 102 of the Labour Law of Dubai and UAE, an employer has the right to impose certain disciplinary penalties on its employees, which may include a warning, dismissal or fine. Article 110 of the Labour Law of UAE states some legal formalities, which says that the penalties listed under Article 102 may not be imposed unless:

  1. The employee has been notified in writing of the allegations against him;
  2. The employee has been given an opportunity to comment on the allegations;
  3. The employer has investigated any defense provided by the employee in respect of the allegations; and
  4. The process listed in (1) to (3) above is recorded in the employee’s personnel file, and the penalty noted at the bottom of the report.

You can contact us for any kind of Unfair or arbitrary dismissal. Our professional team of experts will help you in any kind of situation.

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