Under UAE Labour Law, termination of employment without a valid reason may be classified as arbitrary termination, in accordance with Article 47 of Federal Decree-Law No. 33 of 2021 (Employment Law).

Employees who are subjected to such termination are entitled to file a complaint with the Ministry of Human Resources & Emiratisation (MOHRE), which plays a central role in resolving disputes between employers and employees.

Dispute Resolution Process (MOHRE)

As per the amended provisions under Federal Decree Law No. 09 of 2024, disputes must first be submitted to MOHRE for resolution:

• MOHRE will review the complaint and initiate steps to resolve the matter amicably
• Both employer and employee will be given the opportunity to present their case
• The Ministry acts as the primary dispute resolution authority before any escalation to court

Referral to Court

If an amicable settlement is not reached:

• MOHRE will refer the dispute to the competent court within 14 days
• A memorandum will be submitted, including:
  • Summary of the dispute
  • Arguments of both parties
  • MOHRE’s recommendation

Jurisdiction for Small Claims (≤ AED 50,000)

MOHRE has the authority to directly resolve disputes where:

• The claim value does not exceed AED 50,000, or
• There is non-compliance with a prior amicable settlement

Key points:

• MOHRE issues a binding decision
• The decision can be enforced through the court

Objection & Appeal Process

• Either party may object within 15 working days
• The court will:
  • Schedule a hearing within 3 working days
  • Issue a final judgment within 30 working days

During this period, MOHRE’s decision is temporarily suspended until the court ruling is issued.

Wage Protection During Dispute

If the dispute continues:

• MOHRE may direct the employer to pay wages for up to 2 months
• This applies where salary has been withheld during the dispute period

Employee Entitlements

If arbitrary termination is proven:

• The employee may be entitled to compensation under Article 47(2)
• Supporting evidence is required to substantiate the claim

Key Takeaways

• Arbitrary termination is legally actionable in the UAE
• MOHRE serves as the first point of resolution
• Faster resolution mechanisms now exist for small-value disputes
• Recent amendments provide stronger employee protections