What Are My Rights If I'm Made Redundant or Arbitrarily Dismissed in the UAE?
Under Article 47 of the UAE Labour Law, a dismissal is considered "arbitrary" if it's unrelated to genuine work reasons, or if you were let go because you filed a valid complaint or lawsuit against your employer, and if a court agrees, it can order compensation of up to three months' salary, on top of, not instead of, your gratuity and notice pay. For genuine redundancy, employers must show real business justification, such as economic changes or reorganisation, for the decision.
Key facts
The specifics, before the explanation.
- Legal basis: Article 47 of Federal Decree-Law No. 33 of 2021
- Arbitrary dismissal compensation: up to 3 months' salary, calculated on your most recent wage
- This compensation is separate from, and additional to, notice pay and gratuity
- A dismissal following a genuine employee complaint or lawsuit against the employer is a specific ground for "arbitrary" classification
- Genuine redundancy requires employer evidence of real business need (economic changes, reorganisation, cost-saving), per Article 42
What this actually means
"Arbitrary dismissal" has a specific legal meaning in the UAE, it isn't just any termination that feels unfair. The clearest example the law addresses directly is retaliation: being let go because you raised a genuine complaint with MOHRE or filed a valid claim against your employer. If a court finds that's what actually happened, it can award compensation of up to three months' salary.
Critically, that compensation sits on top of your other entitlements, not instead of them. You're still owed your gratuity based on tenure, and pay for any unworked notice period, with arbitrary-dismissal compensation as a separate, additional amount specifically tied to the wrongful nature of the termination.
For genuine redundancy situations, the bar for employers is evidentiary: they need to show the decision was driven by real business needs, like restructuring or economic pressure, rather than being a disguised form of the retaliation or unrelated-reason dismissal that Article 47 is designed to catch.
What to actually do
Rules and figures move. Confirm anything time-sensitive with the official regulator before you rely on it.
- Keep written records if you've raised a formal complaint against your employer before any termination discussion starts
- Understand that arbitrary-dismissal compensation is separate from, and additional to, your gratuity and notice pay
- If you believe your dismissal followed a genuine complaint you made, get advice on an Article 47 claim specifically
- Ask for the stated business reason behind a redundancy in writing, since employers must be able to justify it
- A UAE labour lawyer can assess whether your specific termination qualifies as arbitrary under the current law
Frequently asked questions
Is arbitrary dismissal compensation automatic?
No, it requires a court to find the dismissal meets the legal definition of arbitrary, typically through a MOHRE complaint or labour court claim.
Can I claim both gratuity and arbitrary dismissal compensation?
Yes. Arbitrary dismissal compensation is awarded on top of your standard entitlements like gratuity and notice pay, not as a replacement for them.
What proof do I need to show a dismissal was arbitrary?
Evidence connecting your termination to a genuine complaint or lawsuit against your employer strengthens a claim significantly — keep dated records of any formal complaints you raised.
Sources
Referenced for this guide: