Defining Arbitrary Dismissal in the Modern Workplace
The UAE Labour Law (Federal Decree-Law No. 33 of 2021) has refined the concept of termination. While the term 'arbitrary dismissal' is specifically linked to filing a complaint against the employer, any termination must adhere to the contractual notice periods and be based on valid grounds. Termination without a valid reason or failure to provide the statutory notice period entitles the employee to financial compensation.
Notice Periods and Financial Entitlements
Upon termination, an employee is entitled to their salary during the notice period, even if the employer requests them not to work. Additionally, the employer must pay the End of Service Gratuity (ESG), accrued leave salary, and provide a repatriation ticket (unless the employee joins another employer). Failure to settle these amounts within 14 days of termination is a violation of Article 53 of the Labour Law.
Legal Action for Unfair Termination
If an employee believes they were terminated unfairly, they should initiate a dispute with MOHRE. The burden of proof often lies with the employer to demonstrate that the termination was for a valid reason as stipulated in the law (e.g., performance issues or redundancy). If the court finds the dismissal was unlawful, it may order compensation of up to three months' gross salary in addition to all other contractual benefits.