Termination Of Work

Termination Of Employee

I have been dismissed from my work without clear reason, in this case, was considered an arbitrary dismissal. Am I entitled to claim compensation for arbitrary dismissal by my employer?

UAE labor law gives special protection to employees because they are the weak party in the employment relationship. UAE labor law is one of the best laws that protect employees’ rights.

If it is proved to the court that the employer dismissed one employee arbitrarily, the court orders compensation for the employee from the employer in addition to all other rights.” Unfair Termination Of Employee ” The compensation value is assessed by the labor court which may reach three months’ salary according to the last salary received by the employee, the damaging nature, termination circumstances and service period.


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 work or performance of the employee.

The reason for termination of an employee’s service may be because the employee has submitted a complaint to the competent authorities or has instituted legal proceedings against the employer.

Article 113 of federal labor law stipulates the cases of employment contract termination as follows: 

If both parties agree to its termination, on the condition that the worker’s consent is given in writing;

on the expiry of the period prescribed in the contract, unless the contract is expressly or tacitly extended in accordance with the

provisions of the Labor Law;

If either of the parties of a contract concluded for an unspecified term, expresses his intention to terminate the contract; provided that the provisions of the Law regarding the period of notice are observed and on grounds accepted for the non-arbitrary termination of the contract.

If there are no reason of reasons mentioned in article 120 of labor law;

The employee could submit a complaint to the Ministry of Human Resources & Emiratisation which tries to reach an amicable settlement between the two parties.

If the ministry fails to reach an amicable settlement for the dispute, the ministry refers the dispute to the court. If it is proved to the court that the employee was dismissed arbitrarily, the court will impose upon the employer to pay the condensation to the employee.

The assessment of the compensation value is considered by the court according to the work type, damage value, and labor service period provided that the compensation value shall not exceed the employee’s salary for three months accounted for based on the last salary of the employee ” Unfair Termination Of Employee ”.

In addition to the compensation, the court orders also the end-of-service gratuity, notice period allowance, and any other dues not paid by the employer.