Arbitrary termination (UAE Lbaour Law)

In case your employer has not mentioned the reason for your termination, it may be treated as arbitrary termination (which is similar to the UK concept of unfair dismissal) of employment in accordance with Article 122 of the Labour Law which states: 'A worker's service shall be deemed to have been arbitrarily terminated by his employer if the reason for the termination is irrelevant to the worker and, more particularly, if the reason is that the worker has submitted a serious complaint to the competent authorities or has instituted legal proceedings against the employer that has proved to be valid.'

 [If the employee is terminated with immediate effect, he or she] will get compensation in lieu of notice [which can be] 30 days or more, depending on the term of unlimited contract based on total salary, including allowances, or up to 90 days total salary with allowances for a limited contract.

 In both cases, gratuity or end-of-service [compensation] will be paid and computed per year of service based on basic pay, no allowances.

 Economic loss is a justified cause to terminate employees. It becomes arbitrary if there are no losses or if the company immediately hires a replacement for the terminated employee.
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