UAE Labor Law Unfair Dismissal: Understanding Your Rights

In Dubai, a diligent employee received an unexpected termination notice without warning or a clear reason. Shocked and feeling unfairly treated, they began questioning whether this act qualified as unfair dismissal under the UAE labor law and what rights they had to seek justice.

What Is Unfair Dismissal Under UAE Labor Law?

Unfair dismissal occurs when an employer terminates an employee without a valid legal reason, particularly if the termination stems from:

• Filing a legitimate complaint with the Ministry of Human Resources and Emiratisation (MOHRE).
• Initiating a labor lawsuit against the employer that proves justified.

Employee Rights in Case of Unfair Dismissal in the UAE

The UAE labor law ensures several rights for employees subjected to unfair dismissal. These include:

1. Compensation for Unfair Dismissal

• Employees are entitled to compensation, determined by the competent court based on the nature of their work, the extent of damages, and the duration of service.
• Compensation cannot exceed three months’ salary based on the last drawn wage.

2. End-of-Service Gratuity

• Employees who have completed at least one year of service are eligible for gratuity:
  • 21 days’ salary per year for the first five years.
  • 30 days’ salary per year for additional years of service.

3. Notice Period Pay

• If the employer fails to honor the contractually or legally stipulated notice period, the employee is entitled to payment equivalent to the unserved notice duration.

4. Compensation for Unused Annual Leave

• Employees are entitled to monetary compensation for unused annual leave based on the number of accrued leave days.

Steps to Take If You Face Unfair Dismissal

Employees who believe they have been unfairly dismissed should:

1. File a Complaint with MOHRE:
   • Submit an official complaint to MOHRE, which will investigate and mediate between the parties to reach a resolution.
2. Approach the Labor Court:
   • If no amicable resolution is achieved, employees can file a labor case to claim their rights and compensation.

Read in-depth: Wrongful Termination Lawsuit in the UAE: A Complete Guide

When Is Termination Considered Lawful?

Certain circumstances qualify as lawful termination under the UAE labor law:

• Mutual agreement to terminate the contract.
• Expiry of the contract period without renewal.
• Serious employee misconduct, such as:
  • Forging documents or impersonation.
  • Disclosing company secrets.
  • Unauthorized absences for specified durations.

The Role of a Labor Lawyer in Dubai

Hiring a labor lawyer in Dubai is highly recommended for employees facing unfair dismissal. A lawyer can:

• Provide expert legal advice.
• Assist in gathering evidence to support the case.
• Represent the employee in negotiations or court proceedings.

FAQs About Unfair Dismissal in UAE

Q: What are the rights of employees in cases of unfair dismissal?

• A: Employees are entitled to compensation, end-of-service gratuity, notice period pay, and unused leave compensation. You may need to read: When Gratuity Payment May Be Withheld in the UAE.

Q: How can an employee claim their rights after unfair dismissal?

• A: File a complaint with MOHRE or pursue a labor case in court if a resolution is not reached.

Q: What instances are considered lawful termination?

• A: Termination due to contract expiration, mutual agreement, or severe employee misconduct is lawful.

Conclusion

Unfair dismissal violates the employee’s rights as outlined in UAE labor law. Employees must understand their entitlements and follow the correct procedures to safeguard them. Seeking assistance from a qualified labor lawyer ensures proper representation and protection of their rights.