Arbitrary Termination Under UAE Labour Law
Arbitrary termination in the UAE is addressed under Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations. This law aims to protect employees from unfair dismissal and ensure fair treatment in the workplace.
What is Arbitrary Termination?
Arbitrary termination occurs when an employee is dismissed without a valid reason or in violation of the labor law. According to Article 47 of the UAE Labour Law, a termination is considered arbitrary if an employee is dismissed for reasons unrelated to their work performance or conduct.
Valid Reasons for Termination
Employers in the UAE can terminate employees for valid reasons, including:
- Poor performance or incompetence
- Repeated violations of company policies
- Misconduct or unethical behavior
- Redundancy due to economic reasons or organizational restructuring
Employee Protections
If an employee believes they have been arbitrarily terminated, they have the right to file a complaint with the Ministry of Human Resources and Emiratisation (MOHRE). The ministry will investigate the claim and determine whether the termination was unjust.
Compensation for Arbitrary Termination
If the MOHRE or the courts find that an employee was arbitrarily terminated, the employee is entitled to compensation. This compensation can be up to three months’ salary, in addition to any other end-of-service benefits they are eligible for, such as gratuity payments and unused leave.
Preventing Arbitrary Termination
To avoid arbitrary termination claims, employers should:
- Document performance issues and provide employees with clear feedback
- Follow proper disciplinary procedures before termination
- Ensure that terminations are based on valid reasons related to job performance or behavior
Conclusion
Understanding the concept of arbitrary termination under UAE Labour Law is crucial for both employers and employees. By adhering to fair practices and ensuring transparent communication, employers can mitigate the risk of arbitrary termination claims, while employees can safeguard their rights in the workplace.
