Unfair Termination of Employment – Here’s the Rights You Need to Know

Arbitrary and unfair dismissal of an employee isn’t lawful under the UAE labour law. Therefore, if you feel that your employer has terminated unfairly, you should check the laws pertaining to termination of employment within the UAE.

Article 122 of UAE Labour Law

As per the UAE labour law, no employer can fire an employee or force them to resign without any justifiable reasons. The UAE’s Labour law Article 122 clearly defines the arbitrary termination of an employee. It occurs when the employer terminates the employee without any valid reason related to their performance. Rather it can be because the employee has filed a complaint against the employee, they maliciously try to fire them.

Article 120 of UAE Labour Law

Article 120 of the labour law clearly describes the conditions under which the employer can instantly terminate the employee’s contract. 

These conditions are:

  • Submission of false identity or nationality by the worker.
  • The employer terminates the employee with the probation period.
  • An employee commits an error causing immense damage to the employer and they inform relevant authorities within 48 hours.
  • Worker violates the safety instructions and jeopardises the safety for themselves and others.
  • The employee fails to perform the assigned duties.  

Incidences of Arbitrary Termination

Resignation by Force

If an employer forcefully makes you resign by threatening you, its arbitrary termination. Any employer forcing their employees to resign in lieu of performance issues, damage to office property or any other such issue falls under arbitrary dismissal.

Forced Transfer or Demotion

Forceful transfer of an employee or demotion with low pay is also a form of arbitrary dismissal. As per the ruling of the Dubai Supreme Court, demoting an employee without any valid reason is arbitrary dismissal.

Termination on Basis of Loss to Company

As per the law, the employer should report loss of any kind to the company by the employee to MOHRE or the ministry of labour. It is also the responsibility of the company to give the necessary proof within 48 hours of the incident. If the employer fails to do so and terminates the employee on this basis, it falls under the arbitrary dismissal category.

Article 123 of UAE Labour Law

Article 123 of the labour law clearly states that if arbitrary termination of the employee is proved, the employer has to pay compensation as per the court’s directives. The court assesses the value of the compensation by taking into account the nature of the job, the damage and the duration of the job. However, it should not exceed the employee’s wage for three months. The calculation is made on the last wage the worker was working on.

Article 123 further adds that in case of arbitrary dismissal, the employee reserves the right to receive their gratuity, notice period wage and any other dues that they are entitled to.In all, if you feel that your employer has terminated you unfairly, you can contact one of the best law firms in Dubai and discuss the matter with them.

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