Wrongful Termination in UAE: Know Your Rights and Options

Losing your job is stressful enough without worrying about whether it was legal. The UAE has clear rules about when and how employers can terminate employees. If those rules weren't followed, you may have a claim for wrongful termination.

What Counts as Wrongful Termination?

Under Article 47 of Federal Decree-Law No. 33 of 2021, termination is unlawful when it is because you filed a serious complaint with MOHRE or a lawsuit against the employer that is proven valid. Compensation is up to 3 months of your last wage, on top of notice pay and gratuity.

Other protections sit in different articles:

• Notice: termination needs written notice (Article 43); if it is not given, you are owed notice pay
• Discrimination: prohibited by Article 4; raise it with MOHRE
• A false misconduct reason: Article 44 dismissal requires a written investigation and a valid ground; if the ground is not proven, you are owed notice pay

Valid Reasons for Termination (Without Notice)

Under Article 44, an employer can dismiss without notice (after a written investigation and a written, reasoned decision) only if the employee:

• Assumes a false identity or submits forged documents
• Makes a serious error causing substantial loss to the employer
• Violates written safety instructions that were posted and made known to them
• Keeps breaching basic duties despite a written investigation and two warnings of dismissal
• Discloses confidential trade secrets
• Exploits their position illegally for personal gain
• Joins another establishment without following the prescribed procedures
• Attends work under the influence of alcohol or drugs
• Physically assaults the employer, manager, or colleagues
• Is absent without valid reason for 20+ intermittent days or 7+ consecutive days in a year

Important: The burden of proof is on the employer. They must document the misconduct and follow proper procedures.

Your Compensation If Wrongfully Terminated

If the court finds your termination was arbitrary, you're entitled to:

• Compensation of up to 3 months' gross salary (court determines the amount based on circumstances)
• Notice period compensation (if notice wasn't served)
• End-of-service gratuity (full amount)
• Unused annual leave pay
• Repatriation: by law the employer bears your repatriation cost unless you have joined a new employer or the termination was your fault (Article 13(12))

Steps to Challenge Wrongful Termination

1. Request a written termination letter stating the reason. If your employer won't provide one, that strengthens your case.
2. Collect evidence: performance reviews, emails, any documentation showing your work was satisfactory
3. File a MOHRE complaint within the complaint timeline
4. Attend mediation: many cases are settled at this stage
5. MOHRE decision or labour court: if mediation fails, MOHRE decides claims up to AED 50,000 (challengeable within 15 working days); larger claims go to court

Timeline

• File your MOHRE complaint as soon as possible after termination
• You have 1 year from the date of termination to file a claim
• MOHRE mediation: typically 2 weeks
• Labour court hearing: typically 2-4 months
• Claims under AED 100,000 are fee-exempt

Related Resources

• How to File a MOHRE Complaint
• Calculate Your Gratuity
• Complete UAE Employee Rights Guide
• MOHRE Complaint Filing Guide