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Here’s What You Need to Know about Arbitrary Dismissal in UAE

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Here’s What You Need to Know about Arbitrary Dismissal in UAE

The government of the UAE is quite strict and straightforward when it comes to protecting the rights of its workforce. In fact, arbitrary and unfair dismissal of employees isn’t lawful under the UAE labour law. Therefore, if you feel that you’re a victim of arbitrary dismissal in the UAE or your employer has terminated you unfairly, you shouldn’t overlook it. In fact, you should check the laws pertaining to termination of employment in the UAE and take necessary action accordingly.

Consult one of the best lawyers in Dubai and present your case to them. There are chances that you are eligible for compensation.

Having said that, the biggest mistake that the majority of employees make is that they don’t take legal aid in such scenarios. The reason? they are unaware of the protection that the Labour law of the UAE provides them.

Here’s what the labour law says:

According to labour law, no party can singly terminate an unlimited contract. For the termination of a contract to become effective, both parties have to mutually agree on its termination. However, if an employer forcefully terminates a contract or makes an employee resign without their consent, it comes under the head of Arbitrary dismissal.

Articles of UAE Labour Law for Arbitrary Dismissal

Article 122 of UAE Labour Law

As per the UAE labour law, no employer can fire an employee or force them to resign without any justifiable reasons.

The UAE’s Labour law Article 122 clearly defines the conditions for the arbitrary termination of an employee. It states that the arbitrary termination occurs for reasons other than those related to the job of the employee.

It happens when the employer unfairly terminates an employee without giving any valid reason related to their performance. Instead, it can be because the employee filed a valid complaint against the employer. Due to this reason, managers maliciously try to fire them.

Article 120 of UAE Labour Law

Article 120 of the labour law clearly elaborates the conditions under which an employer can terminate an employee’s contract. These conditions are:

  • Submission of fake documents i.e., false identity or nationality by the worker.
  • Termination of the employee during the probation period. It is clearly stated in job contracts that the employer can terminate the employee without any notice during the probation period.
  • An error committed by the employee that causes immense damage to the employer. The employer has to inform relevant authorities within 48 hours.
  • Safety instructions and protocols are violated by the worker. They can be terminated if the violation results in jeopardising the safety of themselves and others.
  • Employees are unable to perform the duties assigned to them. 

Examples of Arbitrary Termination

Resignation by Force

If an employer forcefully makes an employee resign by threatening, it’s called an arbitrary termination. Any employer forcing their employees to resign in lieu of performance issues, damage to office property, or any other such issue falls under arbitrary dismissal. And the employee in such scenarios possesses the full right to seek legal aid.

Forced Transfer or Demotion

Forceful transfer of an employee or demotion with low pay is another form of arbitrary dismissal. According to the Dubai Supreme Court, the demotion of any employee without a valid reason is arbitrary dismissal.

Termination on Basis of Loss to Company

As per the law, the employer should report any kind of loss to the company by the employee to MOHRE or the Ministry of Labour. They should do it with proof within 48 hours of the incident. If the employer fails to do it and terminates the employee on this basis, it’s an arbitrary dismissal.

Article 123 of UAE Labour Law

Article 123 of the labour law discusses the compensation an employee can receive in case of arbitrary dismissal. According to this UAE law for termination, if the employee proves their arbitrary termination, the employer has to pay compensation as per the court’s directives.

The court will assess the value of the compensation by taking into account the nature of the job, the extent of the damage, and the duration of the job. However, the compensation amount will not exceed the employee’s wage of three months.

Article 123 further adds that in case of arbitrary dismissal, the employee reserves the right to receive their gratuity, notice period wage, and other pending dues.

Final Words

The UAE in general and Dubai, in particular, is an ideal place for the working class. If the expat-friendly policies and the overprotective UAE labour law weren’t enough to attract you, then the recent initiatives taken by the government such as the Dubai retirement visa, 100% company ownership, etc. will certainly change your mind.

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