Arbitrary dismissal DMCC refers to the unfair or unjust termination of an employee’s contract in the Dubai Multi Commodities Centre.
This concept is governed by the UAE Federal Decree-Law No. 33 of 2021 (as amended), also known as the New UAE Labour Law.
This article will explore what constitutes arbitrary dismissal in the DMCC Free Zone, employees’ legal protections, and how compensation is determined.
We will also discuss how our law firm can assist in legal matters related to arbitrary dismissal in DMCC in 2025.
Contact our expert labor law firm in UAE. Click the WhatsApp icon below.
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Arbitrary Dismissal DMCC
DMCC Termination of Employment is governed by the UAE Federal Decree-Law No. 33 of 2021.
Arbitrary dismissal in the DMCC Free Zone occurs when an employee is unlawfully terminated for filing a legitimate complaint with the Ministry of Human Resources or suing their employer.
This type of dismissal is regarded as retaliatory or unjust, and the law provides explicit protections for employees in these situations.
Examples of arbitrary dismissal in DMCC Labour Law include:
Filing a Complaint About Working Conditions
An employee in the DMCC Free Zone reports unsafe working conditions to the Ministry of Human Resources, which could be a legitimate complaint regarding health and safety issues.
If the employer terminates the employee shortly after the complaint is filed, this could be considered arbitrary dismissal.
The dismissal is unlawful if the complaint is valid, and the termination directly relates to the employee exercising their legal right to report such concerns.
Legal Action for Unpaid Wages
A worker in DMCC takes legal action to recover unpaid wages or benefits. After filing a claim with the court or labor authorities, the employer terminates the employee’s service in retaliation.
If the dismissal happens because of the legal action, it would be classified as arbitrary under the law.
Employees are entitled to take legal steps to secure their rights without fearing termination.
Discrimination Complaints
Consider a scenario where an employee files a complaint of workplace discrimination based on gender, race, or other factors.
The termination could be deemed arbitrary if the employer dismisses the worker following this complaint.
The law ensures that workers cannot be penalized for asserting their equality and fair treatment rights.
Legal Protections and Compensation for Unlawful Dismissal in DMCC
If an employee in the DMCC Free Zone faces arbitrary dismissal, the law offers compensation for unlawful termination.
According to Article 47 of the New UAE Labour Law, compensation must be fair and reflective of the damage caused by the termination.
The compensation is calculated by considering factors such as the employee’s role, the duration of employment, and the severity of the harm caused by the termination.
If a senior executive in a DMCC company is wrongfully dismissed after filing a breach-of-contract complaint, the court will assess the termination’s financial and emotional impact.
The compensation, which cannot exceed three months’ salary, acknowledges the employer’s wrongdoings.
Moreover, the employee is still entitled to receive their notice period allowance and end-of-service benefits in addition to the compensation for the arbitrary dismissal.
This ensures that employees are not disadvantaged following an unlawful termination and their rights are protected.
Learn about DMCC Gratuity Calculator Dubai.
Considerations on Wrongful Termination of Employment in DMCC
The UAE’s legal framework regarding arbitrary dismissal emphasizes a worker’s right to freely express grievances and take legal action without fear of retaliation.
This protection is crucial for promoting transparency and fairness in the workplace, particularly in the DMCC Free Zone, which attracts a diverse range of international businesses.
However, employees should be aware that proving arbitrary dismissal can be complex.
It often requires documenting the timeline of events, the nature of the complaint or legal action, and any potential evidence of retaliatory behavior by the employer.
This is why seeking expert legal assistance is essential in navigating these disputes.
Employers in the DMCC Free Zone must also be cautious when terminating employees, ensuring that the reasons for dismissal are legitimate and not connected to the employee exercising their legal rights.
Otherwise, they could be obligated to pay compensation, reputational damage, and legal costs for defending an arbitrary dismissal case.
In summary, both employees and employers in DMCC must understand the legal framework regarding arbitrary dismissal.
Employees have the right to protect themselves from unfair termination, and employers must ensure that any dismissal is justified under DMCC Labour Law for Termination and not retaliatory.
Legal Services Related to Arbitrary Dismissal in DMCC
Our labor lawyer in Dubai specializes in providing legal services for employees facing arbitrary dismissal DMCC.
We offer a range of legal services, including:
- Consultation on Unlawful Termination: Our lawyers can help you understand whether your dismissal was arbitrary and advise you on your rights under UAE law.
- Filing Complaints: If your dismissal was due to filing a legitimate complaint or lawsuit, we can assist you in filing a formal complaint with the Ministry of Human Resources or any other relevant authorities.
- Litigation Services: If necessary, our team can represent you in court, seeking fair compensation for wrongful dismissal.
- Negotiation with Employers: In some cases, we can help negotiate with your employer to reach an amicable settlement, ensuring you receive the compensation and benefits owed to you.
If you believe you have been arbitrarily dismissed or need legal support related to wrongful termination in the DMCC Free Zone, our expert team will guide you.
FAQs about Unlawful Termination of Employment in DMCC
Based on the latest legal provisions, this article has outlined the key aspects of arbitrary dismissal DMCC.
Should you require legal assistance, our firm can provide expert support for unlawful termination cases in the DMCC Free Zone.
Contact our labor law firm in UAE for expert help. Click the Whatsapp icon below.
A legal consultant specializing in UAE labor law. He regularly publishes articles on the website and writes on various areas of UAE law, with a specific focus on labor law.
