Arbitrary Dismissal from Work in the UAE

10 September 2026

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Arbitrary Dismissal from Work in the UAE

Arbitrary dismissal from work in the UAE does not mean every dismissal that feels unfair; it has a precise legal definition with a specific compensation attached to it. Under the Federal Decree-Law Regulating Labour Relations, terminating a worker is unlawful when the reason is that the worker filed a serious complaint with the Ministry of Human Resources and Emiratisation or brought a court case against the employer that was proven valid. In that case the worker is entitled to compensation assessed by the court of up to three months' wages, in addition to notice pay, end-of-service gratuity and all other entitlements.

Dismissal without a stated reason but with the full notice period is, in most cases, a lawful termination, while immediate dismissal without notice is only permitted in specific situations and after a written investigation. In this article a labour lawyer in Dubai from AWADH ALMHEIRI LAW FIRM AND LEGAL CONSULTATIONS explains when your dismissal is truly arbitrary, how much the compensation is, and the steps and deadlines you must follow so that your rights are not lost.

When is arbitrary dismissal from work in the UAE an unlawful termination that entitles you to compensation?

What is arbitrary dismissal from work in the UAE under the current law?

The old labour law treated a dismissal as arbitrary whenever the reason was unrelated to the work. The current law has narrowed the concept and renamed it "unlawful termination of the worker's service". Arbitrary dismissal in the UAE today is one clear situation: your employer dismisses you in retaliation for filing a serious complaint with the Ministry or bringing a case against him that was proven valid.

This does not mean that dismissal in every other situation is automatically correct. If you were dismissed without notice outside the cases set by law, or without a written investigation, or your entitlements were not paid, you have full financial rights that you can claim through a labour complaint; the legal characterisation, however, differs from an arbitrary-dismissal claim. We explained this distinction in detail in our article: When is the dismissal of a worker considered arbitrary under UAE Labour Law, and what steps can he take to recover his rights.

The difference between arbitrary dismissal, termination with notice and dismissal without notice

The point most people searching for their rights confuse is the distinction between three forms of ending an employment contract, each with different financial consequences:

Termination with notice (lawful termination)

Either party may terminate the contract for a legitimate reason by written notice of no less than 30 days and no more than 90 days. You are entitled to your full wage for the notice period, end-of-service gratuity, pay for unused leave and a return ticket where due. Whoever ends the contract without observing the notice period pays the other party a notice allowance equal to the wage for the remaining period.

Dismissal without notice (disciplinary dismissal)

Permitted only in exhaustive cases such as impersonation or submitting forged documents, causing serious material loss, assault, or unjustified absence of more than 20 intermittent days or 7 consecutive days. A written investigation and a written, reasoned dismissal decision handed to the worker are required; otherwise the dismissal is defective and you recover your full entitlements including notice pay.

Arbitrary dismissal (unlawful termination)

Dismissal because of a serious complaint or a case proven valid. Here, in addition to everything above, you receive a special compensation assessed by the court, capped at three months' wages calculated on the last wage you received.

How much is arbitrary dismissal compensation in the UAE and how does the court assess it?

Compensation for arbitrary dismissal from work in the UAE is not a fixed figure. The competent court assesses it against three criteria: the type of work, the extent of the harm you suffered, and your length of service. The ceiling in all cases is three months' wages calculated on the last wage you received, meaning the total wage and not the basic wage only.

Importantly, nothing is deducted from this compensation and it does not replace your other rights. Alongside it you are entitled to:

Notice allowance for the period the employer failed to observe.
End-of-service gratuity: 21 days' wage for each of the first five years of service and 30 days' wage for each year thereafter, capped at two years' wages, calculated on the basic wage.
Unpaid wages and payment for unused annual leave.
Up to two months' wages if payment of your wage stopped because of the dispute; the Ministry may order the employer to pay it while the dispute is pending.
A return ticket to your home country where due under the contract or the law.

Dismissal without notice: when is it valid and when does it become unlawful dismissal?

Many companies use the term "immediate dismissal" to avoid paying notice and end-of-service gratuity. The law allows dismissal without notice only in exhaustively listed cases and ties them to strict formal conditions:

A written investigation with the worker before the dismissal decision.
A written, reasoned dismissal decision delivered to the worker.
In the case of serious material loss, the Ministry must be notified within 7 working days of learning of the incident.
For disciplinary penalties generally, a worker may not be charged with a violation more than 30 days after it is discovered, and no penalty may be imposed more than 60 days after the investigation concludes.

If any of these conditions is missing, the dismissal loses its legal basis and you may claim notice pay and full end-of-service gratuity. This is precisely where a labour lawyer in Dubai adds value: characterising the facts correctly before the Ministry and the court.

Steps to claim your rights after arbitrary dismissal from work

The route in the UAE is mandatory and sequential: the court will not accept your case unless you go through the Ministry first and observe the deadlines. In brief:

Documentation

Gather your documents before any step

Employment contract, latest payslips, the dismissal letter or termination message, the investigation record if any, any earlier complaint you filed with the Ministry, and correspondence with management. Arbitrary dismissal is proven by the time link between the complaint and the dismissal, so the date on every document matters.

Complaint

File a labour complaint with the Ministry of Human Resources and Emiratisation

Filed through the app, the call centre or service centres. The Ministry examines the complaint and attempts an amicable settlement between the parties.

Settlement

Ministry decision for claims up to AED 50,000

If your claim does not exceed AED 50,000 the Ministry decides it by a decision that has the force of a writ of execution; either party may challenge it before the Court of First Instance within 15 working days of notification, and the court's judgment is final. For larger claims where settlement fails, the complaint is referred to the court within 14 days with a memorandum containing the Ministry's recommendation.

Litigation

File the labour case before the competent court

The court sets a hearing within 3 working days and decides promptly. Labour cases are exempt from court fees if the claim does not exceed AED 100,000, and you may claim the compensation, notice pay and end-of-service gratuity together in one case.

Enforcement

Enforce the judgment or the Ministry decision

Once the final judgment is issued an enforcement file is opened under the Civil Procedure Law, and the establishment's accounts and assets may be attached to recover the amounts awarded.

For the procedural details of each stage, what to sign and what to refuse on dismissal, see our article: Your legal rights and the correct procedures when dismissed from work.

“

Most arbitrary-dismissal cases are won or lost on documents, not on words. Whoever signs a release before receiving his entitlements, or waits until the two-year limit is near, loses a large part of his right before ever entering the courtroom.

Lawyer Awadh Almheiri

Legal deadlines that must not be missed in arbitrary dismissal cases

14 days

Time for the Ministry to refer the complaint to the court when amicable settlement fails

15 working days

Time to challenge the Ministry's decision before the Court of First Instance for claims up to AED 50,000

2 years

No claim for any labour right is heard after two years from the end of the employment relationship

Practical tips before filing an arbitrary dismissal complaint

Do not sign the final settlement before review

Your signature on a release or settlement will be used against you later; ask for an itemised statement first and consult a lawyer before signing.

Keep proof of your earlier complaint

The complaint number and date at the Ministry are the basis for proving arbitrary dismissal, because the law requires the dismissal to be due to a serious complaint or a case.

Ask for the dismissal decision in writing

If you were dismissed without notice you are entitled to a written, reasoned decision. Its absence is evidence in your favour.

Do not walk out on your own

Abandoning work without a legitimate reason may be recorded against you and bar you from a new work permit for one year. If the breach is the employer's, notify the Ministry 14 working days before leaving.

Regularise your residency status quickly after referral

Once the complaint is referred to the court you must register the case and regularise your status in the country promptly; a temporary work permit may be requested during the dispute.

Legal references

Federal Decree-Law No. 33 of 2021 Regulating Labour Relations
Federal Decree-Law No. 9 of 2024 amending certain provisions of Federal Decree-Law No. 33 of 2021 Regulating Labour Relations
Cabinet Resolution No. 1 of 2022 on the Executive Regulations of Federal Decree-Law No. 33 of 2021
Federal Decree-Law No. 42 of 2022 Promulgating the Civil Procedure Law

Facing arbitrary dismissal from work in the UAE? Contact AWADH ALMHEIRI LAW FIRM AND LEGAL CONSULTATIONS

We review your contract, dismissal letter and documents, characterise the facts legally, and handle the complaint before the Ministry of Human Resources and Emiratisation and the case before the labour court through to enforcement.

Labour lawyer in Dubai and across all the emirates

Frequently asked questions about arbitrary dismissal from work in the UAE

QIs dismissal without a reason considered arbitrary dismissal in the UAE?

Not necessarily. Dismissal without a stated reason, with the full notice period and your entitlements paid, is a lawful termination under the current law. Arbitrary dismissal carrying the special compensation is dismissal because of a serious complaint or a case proven valid.

QHow much is arbitrary dismissal compensation under UAE Labour Law?

The court assesses it at up to three months' wages calculated on the last total wage, considering the type of work, the harm and length of service, in addition to notice pay, end-of-service gratuity and other entitlements.

QAm I entitled to end-of-service gratuity if I was dismissed arbitrarily?

Yes. End-of-service gratuity is an independent right that is not lost by arbitrary dismissal or termination with notice, and it is calculated on the basic wage for anyone who has completed one year of continuous service.

QWhat is the time limit for filing an arbitrary dismissal complaint in the UAE?

The maximum is two years from the end of the employment relationship, after which the claim is not heard. But do not wait: delay weakens the evidence and complicates your residency status.

QCan I file an arbitrary dismissal case directly in court?

No. The complaint must first be filed with the Ministry of Human Resources and Emiratisation; if settlement fails it is referred to the court, and a case is not accepted without following these procedures and deadlines.

QCan my employer dismiss me immediately without notice?

Only in the cases specified by law, such as forgery, assault or repeated absence, and subject to a written investigation and a written, reasoned decision. Outside those cases the worker is entitled to notice pay and end-of-service gratuity.

QAre there court fees for an arbitrary dismissal labour case?

Labour cases and applications not exceeding AED 100,000 are exempt from court fees at all stages of litigation and enforcement.

QDoes this apply to employees in free zones such as the DIFC?

No. The Dubai International Financial Centre and Abu Dhabi Global Market have their own employment laws and independent courts, while most other free zones are generally subject to the federal law. Contact us to determine which regime applies to your contract.

QWhy do I need a labour lawyer in Dubai for an arbitrary dismissal case?

Because the difference between "arbitrary dismissal", "defective termination" and "disciplinary dismissal" changes the value of the claim and the proof required. The lawyer characterises the facts, calculates the entitlements precisely, and observes the procedural deadlines on which rights depend.

Legal disclaimer

This content is provided by AWADH ALMHEIRI LAW FIRM AND LEGAL CONSULTATIONS for legal culture and community awareness purposes only. It does not constitute legal advice and does not substitute for consulting a qualified lawyer about the facts of your case. Laws and resolutions are subject to amendment; please verify the provisions in force at the time of reading.

In the event of any discrepancy between this translation and the Arabic text, the Arabic text shall prevail as the authoritative reference.

Dubai

AWADH ALMHEIRI LAW FIRM AND LEGAL CONSULTATIONS provides labour lawyer services in Dubai for arbitrary dismissal from work cases, arbitrary dismissal compensation, end-of-service gratuity, notice pay, labour complaints before the Ministry of Human Resources and Emiratisation, and cases before the Dubai Labour Court.

Other emirates

We handle arbitrary dismissal from work cases and labour disputes in Abu Dhabi, Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah and Fujairah before the competent federal and local courts.