Dispute Resolution
UAE Wrongful Dismissal Guide: Employee Rights and Remedies 2025
Complete guide to wrongful dismissal in UAE. Understand arbitrary termination under Article 47, compensation up to 3 months salary, and how to file claims.
Published: January 23, 2026
14 min read read
8 topics covered
Quick Summary: Complete guide to wrongful dismissal in UAE. Understand arbitrary termination under Article 47, compensation up to 3 months salary, and how to file claims.
Wrongful or arbitrary dismissal occurs when an employer terminates an employee without a valid work-related reason. Under UAE Federal Decree-Law No. 33 of 2021, employees who are wrongfully dismissed may be entitled to compensation of up to 3 months gross salary in addition to their normal end-of-service entitlements. Understanding your rights is essential to protecting yourself.
| Aspect | Details |
|---|---|
| Legal Basis | Federal Decree-Law No. 33 of 2021 |
| Arbitrary Dismissal | Termination without valid reason |
| Maximum Compensation | Up to 3 months gross salary |
| Filing Deadline | 1 year from termination |
| Plus Other Dues | Gratuity, leave, notice period |
What is Wrongful Dismissal?
Understanding when termination is considered arbitrary under UAE law.
Definition
In UAE law, wrongful or arbitrary dismissal occurs when the employer terminates employment without a valid work-related reason, when termination violates labor law protections, when the employee is dismissed for exercising legal rights, or when termination is discriminatory or retaliatory.
Arbitrary Dismissal Examples
Dismissal is considered arbitrary when no reason is given, when the reason is unrelated to work, when termination is retaliation for filing a labor complaint, when the employee was exercising legal rights, when termination is based on discrimination, or when it occurs during protected leave periods.
Legal Framework
Article 47 of Federal Decree-Law No. 33/2021 governs arbitrary dismissal in the UAE.
Lawful Termination Grounds
Employers can lawfully terminate employment for documented poor performance, gross misconduct under Article 44, genuine redundancy due to business needs, contract expiry for limited contracts, mutual agreement between both parties, or legitimate business closure.
Grounds for Immediate Dismissal (Article 44)
Employers can dismiss without notice or gratuity for assuming false identity, gross error causing substantial loss, ignoring written safety rules, abandonment (7+ consecutive days absent without valid reason), intoxication at work, assault on employer or colleague, disclosure of trade secrets, final criminal conviction, or dishonesty such as theft, fraud, or forgery.
| Ground for Article 44 Dismissal | Employer Must Prove |
|---|---|
| False identity | Employee used false documents |
| Gross error | Substantial financial loss caused |
| Safety violation | Written rules existed and were ignored |
| Abandonment | 7+ days absence, attempts to contact made |
| Intoxication | Evidence of impairment at workplace |
| Assault | Physical attack occurred |
| Trade secrets | Confidential information disclosed |
Protected Categories
Certain employees have additional protections against dismissal.
Cannot Be Dismissed For
It is illegal to dismiss an employee for filing a complaint with MOHRE or court, during pregnancy, during maternity leave (60 days), while on documented sick leave, based on nationality, gender, or religion, due to disability, or for union activity which is a protected right.
Pregnancy Protection
Pregnant employees cannot be terminated during pregnancy or while on maternity leave. After maternity leave, they have the right to return to the same or similar role. Employees should notify their employer of pregnancy, though failure to do so does not remove protection.
Compensation for Arbitrary Dismissal
Understanding what you may be entitled to if wrongfully dismissed.
Compensation Components
Arbitrary dismissal compensation can be up to 3 months gross salary. This is in addition to notice period pay if not served (30-90 days depending on contract), full gratuity as per law, unused annual leave balance, and any other pending salary or allowances.
Calculation Example
For an employee with AED 15,000 monthly salary, 4 years of service, and 20 days unused leave who was arbitrarily dismissed: Arbitrary dismissal compensation (3 months) equals AED 45,000. Notice period (30 days) equals AED 15,000. Gratuity (21 days per year for 4 years) equals AED 42,000. Leave balance (20 days) equals AED 10,000. Total potential claim is AED 112,000.
Court Discretion
The court determines the actual compensation amount based on the nature of work, extent of damage to the employee, length of service, and specific circumstances of the dismissal. The 3 months is the maximum, not guaranteed.
Filing a Wrongful Dismissal Claim
Steps to take if you believe you were wrongfully dismissed.
Immediate Actions
Document everything related to your dismissal. Request a written termination reason from your employer. Preserve all evidence including emails, messages, and documents. Calculate all your dues accurately. File a MOHRE complaint within 1 year of termination.
MOHRE Process
File your complaint on day 1 after gathering evidence. Mediation hearing is typically scheduled within 3-7 days. Settlement attempts continue for up to 14 days. If no settlement is reached, the case is referred to Labor Court.
What to Claim
Include arbitrary dismissal compensation if termination was arbitrary, notice period pay if not given or paid, gratuity if you have over 1 year of service, leave balance for unused annual leave, any unpaid salary, and repatriation ticket if specified in your contract.
Proving Arbitrary Dismissal
Understanding the burden of proof and building a strong case.
Burden of Proof
The employee must prove they were dismissed. The employer must prove they had a valid reason for termination. If the employer cannot demonstrate a valid work-related reason, the dismissal is presumed arbitrary.
Strong Employee Cases
Your case is stronger when there is no termination letter or documented reason, when you have a good performance record with no issues, when you recently filed a complaint suggesting retaliation, when there is a discriminatory pattern affecting multiple employees, or when you belong to a protected category.
Weak Employee Cases
Your case may be weaker if there is documented misconduct in your file, if you received performance warnings, if you violated contract terms, or if you were terminated during probation with proper notice.
| Employer Defense | Requirements to Prove |
|---|---|
| Poor performance | Documented warnings, improvement plan given |
| Misconduct | Evidence of specific violation |
| Redundancy | Genuine business reason, fair selection |
| Probation failure | Within 6 months, proper notice given |
Frequently Asked Questions
Document Performance Properly
NeuralHR helps employers maintain proper documentation, progressive discipline records, and compliant termination processes to avoid wrongful dismissal claims.
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NeuralHR Team
VerifiedUAE HR Compliance Experts
Our team of HR professionals and legal experts specializes in UAE labor law compliance, with extensive experience helping businesses navigate MOHRE regulations, Emiratisation requirements, and workforce management in the UAE and GCC region.
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