Understanding Non-Arbitrary Dismissal Under UAE Labour Law

Apr 9, 2026

53 min

Apr 9, 2026 09:31

Ask Gulf News: When termination is not considered arbitrary dismissal?

## Conditions for Non-Arbitrary Dismissal

In the UAE, termination of employment is not considered arbitrary if it adheres to specific legal conditions. According to Article 47 of the Federal Labour Law, an employee is entitled to compensation for arbitrary dismissal only if the termination is due to filing a serious complaint with the Ministry or a lawsuit against the employer, and the validity of these actions is proven.

## Employer's Right to Terminate

Employers have the right to terminate an employee's contract for legitimate reasons. Similarly, employees can resign for any reason, provided both parties respect the notice period outlined in the employment contract, as stipulated in Article 43 of the Law. During this notice period, work must continue as usual.

## Compensation for Arbitrary Dismissal

If a termination is deemed arbitrary, compensation is determined by the court. The amount cannot exceed three months' wages, calculated based on the last full wage received. Factors such as the type of work, the damage caused to the worker, and the length of service are considered when determining compensation.

Read the full story at the source

What you need to know to get Emirates ID?

Leave your details and get a guide as a gift to avoid mistakes

Article contents