Employee entitled to 3 months' salary if arbitrarily dismissed

Question: I was employed by a company that is based in the mainland of Dubai and my employer terminated my employment recently. My performance at my company was good and I received certificates for my job-related assignments. Does the employer have the right to terminate an employee who has excelled in his employment? Am I entitled to claim compensation for arbitrary dismissal by my employer?

Answer

As your employment was based in the mainland of Dubai, the provisions of Federal Law No. 8 of 1980 regulating Employment Relations in the UAE (the 'Employment Law') and the subsequent Ministerial Orders are applicable.

In the UAE, an employer may terminate an employee on various valid grounds including but not limited to disciplinary actions, poor performances, long term health issues and genuine economic challenges faced by the employer. However, if the employee feels that his termination is arbitrary and not based on one of the aforementioned reasons, he may approach the Ministry of Human Resources and Emiritisation (the 'Mohre') and thereafter, the court which has jurisdiction to hear the matter if necessary. This is in accordance with Article 122 of the Employment Law, which states:


"An employee's service shall be deemed to have been arbitrarily terminated by his employer if the reason for the termination is irrelevant to the employer and more particularly, if the reason is that the employee has submitted a serious complaint to the competent authorities or has instituted legal proceedings against the employer that has proved to be valid."


Further, if an employer terminates the services of an employee without assigning any reason of termination, the employee may claim compensation for arbitrary dismissal, which may be a maximum of three months of the remuneration last drawn by the employee. This is in accordance with Article 123 of the Employment Law, which states, "(a) Where an employee is arbitrarily dismissed, the competent court may order the employer to pay him compensation. The court shall assess such compensation with due regards to nature of the work, the amount of the prejudice he has sustained and his period of service, and after investigating the circumstances of the work. The amount of the compensation shall in no case exceed the employee's remuneration for three months calculated on the basis of the last remuneration he was entitled to.

(b) The provisions of the preceding paragraph shall not prejudice the employee's right to the gratuity he is entitled to and the termination notice allowance provided for in this law."