In the UAE, arbitrary dismissal refers to an employer terminating an employee in retaliation after a legitimate complaint is filed with MoHRE.
This article explains how Federal Decree-Law No. 33 of 2021 defines arbitrary dismissal, outlines legal remedies available in 2025, and highlights examples of unfair termination cases.
You’ll also learn about compensation limits, constructive dismissal, and how our legal team can support you through every stage, from MoHRE complaints to court representation.
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Challenging Arbitrary Dismissal in the UAE
Employees who believe they have been wrongfully terminated can formally complain to MoHRE. The Ministry will initially attempt to mediate a resolution between the parties.
The matter is escalated to the labor courts if no amicable settlement is achieved. If the court determines the dismissal was arbitrary, the employer may be ordered to pay compensation.
Compensation for Unfair Terminations
In unfair or arbitrary termination cases, UAE labor courts assess compensation based on several factors, including the nature of the employee’s work, the harm caused by the dismissal, and the length of employment.
By law, compensation for arbitrary dismissal cannot exceed three months’ salary, calculated from the employee’s most recent wage.
Employees found to be arbitrarily dismissed may be eligible for multiple types of compensation, including:
- Payment for the dismissal itself.
- End-of-service benefits.
- Compensation for the notice period if not correctly given.
- Outstanding wages or unpaid entitlements.
Unfair Dismissal UAE Example Cases
To better understand how arbitrary dismissal claims unfold, consider some practical cases.
For instance, if an employee reports delayed salary payments and hazardous working conditions to MoHRE and is dismissed soon after, the court may find the dismissal retaliatory.
In this case, the court would likely award the employee compensation equivalent to three months’ salary and unpaid wages.
If a worker files a lawsuit for unfulfilled contractual benefits, and the employer retaliates by terminating the worker, the court may rule in favor of the employee.
The court could grant compensation and offer reinstatement as a remedy in such a case.
If an employee files a harassment complaint and is unjustly dismissed, the court may rule the dismissal arbitrary and enforce maximum legal compensation.
These real-world cases emphasize the importance of understanding legal rights and seeking justice through formal legal channels when faced with unjust termination.
Constructive Dismissal UAE
While arbitrary dismissal in the UAE typically refers to an employer’s wrongful termination of an employee, the concept of constructive dismissal also warrants attention under UAE labor practices.
Constructive dismissal occurs when an employee is forced to resign due to their employer’s severe misconduct.
This misconduct can include creating a hostile work environment, unilaterally changing critical terms of employment, or failing to address workplace harassment.
The UAE Labour Law (Federal Decree-Law No. 33 of 2021) does not explicitly mention the term “constructive dismissal.”
However, the concept is indirectly acknowledged through provisions that permit employees to resign without notice if their employer fails to fulfill contractual or legal obligations.
Specifically, Article 45 permits an employee to terminate their employment immediately if the employer commits a grave violation of obligations, making continued employment untenable.
This aligns with broader labor law doctrines internationally, including those in the UK and Canada, where constructive dismissal is a well-defined legal remedy.
In UAE practice, such resignations—when properly documented and substantiated—may entitle the employee to claim full end-of-service benefits and, in some cases, additional compensation.
Thus, constructive dismissal, while not named as such, is conceptually embedded within UAE labor protections and plays a critical role in upholding employee rights in cases of employer misconduct.
Learn more about Termination of Employment in the UAE.
Legal Support for Arbitrary Dismissal Claims in the UAE
Arbitrary dismissal in the UAE involves strict legal procedures and a clear understanding of UAE labor law.
Our legal consultants in Dubai provide full legal support for employees who have been wrongfully terminated, from filing MoHRE complaints to court representation and compensation recovery.
Legal Consultation for Unfair Termination in UAE
We begin by providing personalized legal consultation to employees who have faced unfair or unjust termination.
We help you understand your legal rights under UAE labor law and assess the strength of your case before taking any formal action.
Complaint Drafting and Mediation for Unlawful Dismissal
Our lawyers assist in drafting and submitting complaints related to unlawful termination to the Ministry of Human Resources and Emiratisation (MoHRE).
We also engage in mediation to resolve disputes amicably, ensuring that all efforts are made to settle the matter before escalation.
Legal Representation in Labor Court for Unjust Dismissal
If mediation fails, we provide full legal representation in the labor court to ensure your case is presented effectively and your rights are protected.
Our team challenges the dismissal’s legitimacy and fights for your reinstatement or appropriate compensation.
Recovery of Compensation for Wrongful Termination
We assist employees in recovering compensation for wrongful termination, including unpaid dues, end-of-service benefits, notice period compensation, and any other outstanding payments due to an unlawful dismissal.
We aim to ensure that you are fairly compensated for any losses suffered due to the termination.
Whether you are facing retaliatory termination or seeking to understand your options under UAE labor regulations, our firm is committed to helping you secure fair treatment and rightful compensation.
Find more services from Top Labour Law Lawyers in Dubai.
FAQs about Illegal Employment Termination in the UAE
Arbitrary dismissal in the UAE is illegal under Article 47 of Federal Decree-Law No. 33 of 2021, which protects employees who file valid complaints or assert their rights through legal or regulatory channels.
If your employment was terminated after raising a legitimate issue, you have the right to seek compensation and pursue legal remedies.
Our legal team supports you at every stage—from drafting and filing your MoHRE complaint to full representation in labor court—to ensure your rights are enforced and justice is achieved.
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A law graduate and legal writer focusing on UAE law, he became known for his ability to clarify complex legal concepts through his writings. His work simplifies the intricacies of the legal landscape in the Emirates, helping both locals and expatriates navigate their legal concerns.
