Wrongful Termination UAE
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Wrongful termination in UAE occurs when an employer dismisses an employee without a valid legal reason, without following the correct process, or in violation of the employee’s contractual or statutory rights. If you have been dismissed suddenly, unfairly, or without proper notice or compensation, you may have a strong legal claim — and you may be entitled to significantly more than your employer has offered.
What Is Wrongful Termination Under UAE Law?
Federal Decree-Law No. 33 of 2021 — the UAE’s New Labour Law — distinguishes between lawful termination and arbitrary (wrongful) dismissal. Article 47 of the law specifically addresses arbitrary dismissal, defining it as a termination that is not based on genuine work-related reasons or that violates the procedural requirements of the law.
A termination is likely to be wrongful in the following circumstances:
• The employee is dismissed without any reason being given
• The stated reason for dismissal is not genuine or cannot be substantiated
• The employee is dismissed in retaliation for filing a complaint or asserting their rights
• The employer fails to give the required notice or pay in lieu of notice
• The employee is dismissed during sick leave or maternity leave
• The termination is discriminatory — based on race, nationality, religion, gender, or pregnancy
• The employer fabricates disciplinary grounds to justify an otherwise unjustified dismissal
The Difference Between Termination with Notice and Arbitrary Dismissal
An employer in the UAE can generally terminate an employment contract for legitimate work-related reasons — poor performance, redundancy, genuine misconduct — provided they follow the correct procedure including giving the contractually agreed notice period.
Arbitrary dismissal is legally distinct and carries enhanced compensation. Under Article 47, an employee who is arbitrarily dismissed is entitled to compensation of up to three months’ total remuneration in addition to all other end of service entitlements. This makes it financially important to correctly characterise what has happened to you.
What Are You Entitled to After Wrongful Termination UAE?
• Notice period pay — either the actual notice period worked or payment in lieu at full salary
• End of service gratuity — 21 days per year for the first five years, 30 days per year thereafter
• Accrued but untaken annual leave — paid out at daily rate
• Arbitrary dismissal compensation — up to 3 months’ remuneration if dismissal is found arbitrary
• Outstanding salary, bonus, or commissions owed
• Return flight ticket to home country — if included in contract
• Any additional contractual entitlements — housing allowance continuation, medical insurance, etc.
Steps to Take After Wrongful Termination
Step 1 — Do not sign anything: Do not sign any settlement, exit agreement, or resignation letter your employer presents until you have taken legal advice. Signing away rights is irreversible.
Step 2 — Gather your evidence: Collect copies of your employment contract, payslips, performance reviews, any written communications about your dismissal, and any other relevant documents before you lose access to company systems.
Step 3 — Calculate what you are owed: Our lawyers will calculate your full entitlement including gratuity, leave, notice, and arbitrary dismissal compensation — so you know the number before any negotiation.
Step 4 — File a MOHRE complaint: If your employer will not pay voluntarily, file a complaint with MOHRE. This is the mandatory first step before court proceedings and is free to do.
Step 5 — Labour Court if needed: If MOHRE mediation fails, the case proceeds to the Labour Court where a judge will determine your entitlement.
Wrongful Termination During Probation
Employees on probation can be terminated with shorter notice — a minimum of 14 days under the new law. However, termination during probation is not completely unrestricted. If an employer terminates a probationary employee in bad faith — for example, to avoid paying end of service after probation ends, or in retaliation for a complaint — this can still constitute wrongful dismissal.
Wrongful Termination Protections: Groups with Enhanced Rights
Certain categories of employee have enhanced protection against termination:
• Pregnant employees: Cannot be dismissed due to pregnancy or maternity leave
• Employees on sick leave: Cannot be dismissed during certified sick leave up to 90 days per year
• Employee union representatives: Enhanced protection where unions exist
• Employees who have filed complaints: Protection against retaliatory dismissal
How Long Do I Have to File a Wrongful Termination Claim?
Under UAE law, labour claims must be filed within two years of the date the right arose — in most cases, the date of termination. While two years may sound generous, acting quickly is strongly advisable. Evidence is more available, witness memories are fresher, and employers are more likely to settle when a claim is made promptly.
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Frequently Asked Questions
Yes. If you believe the performance grounds are fabricated or exaggerated, or if your employer cannot produce contemporaneous documentation of performance concerns, this is a strong basis to challenge the dismissal as arbitrary. Courts look at whether the employer can substantiate the stated reason.
In some circumstances, yes. Settlements signed under duress, without independent advice, or that do not meet minimum statutory requirements may be challengeable. Contact our team to review the specific terms of what you signed.
Non-payment of salary is a serious matter under UAE law. MOHRE has expedited processes for salary complaints. In urgent cases, employers can be referred to prosecution within days of a complaint being filed.
