The UAE’s New Federal Labour Law No. 33 of 2021 has introduced significant changes to the employment framework, including abolishing the unlimited-term employment contract.
Despite this change, employees can still face arbitrary dismissal unlimited contract UAE.
This article will provide an overview of arbitrary dismissal for employees with unlimited-term contracts in the UAE, including the legal framework, common grounds for dismissal, and the consequences of arbitrary dismissal.
Office of Al Mulla. Whatsapp: Click here. Location: Dubai. Phone: 00971501961291.
Table of Contents
Arbitrary dismissal unlimited contract UAE.
Employees in the UAE with unlimited-term contracts can still face arbitrary dismissal despite introducing the New Federal Labour Law No. 33 of 2021.
Arbitrary dismissal refers to situations where an employer terminates an employee without a valid reason, leading to unfair treatment and loss of income.
Under the new law, employees with unlimited-term contracts are entitled to receive a minimum of 30 days’ notice before the termination of their contract.
Employers must provide a valid reason for terminating an employee with an unlimited-term contract. The law provides a list of reasons that justify termination without notice, including:
- Adopting a false identity or submitting forged documents or certificates.
- Causing substantial material loss to the employer or deliberately damaging the employer’s properties.
- Failing to perform basic duties under the employment contract and persisting in violating them despite being warned twice of dismissal.
- Divulging any secrets of the establishment resulting in losses or a missed opportunity to the employer or achieving a personal benefit for self.
- Being found drunk or under the influence of prohibited drugs during working hours or committing an action breaching public morals at the workplace.
3 months’ salary on termination unlimited contract.
Employees who believe they have been unfairly dismissed can file a complaint with the Ministry of Human Resources and Emiratisation (MoHRE).
The ministry may resolve the issue amicably, but the case may be referred to a court if no agreement is reached.
If the court finds the dismissal was arbitrary, the employer may be ordered to compensate the employee.
The amount of compensation is based on the type of work, the extent of damage caused to the employee, and the duration of their employment.
The compensation cannot exceed the employee’s wage for three months.
Unlimited contract termination Grounds.
Employers must provide a valid reason for dismissing an employee with an unlimited-term contract. Some common grounds for dismissal include:
- Poor performance. if the employee consistently fails to meet the employer’s expectations or perform essential job duties.
- Misconduct. if the employee engages in misconduct, theft, harassment, or violence.
- Redundancy. if the employer no longer requires the employee’s services for economic or business reasons.
FAQs about arbitrary dismissal unlimited contract UAE.
Conclusion.
Despite introducing the New Federal Labour Law No. 33 of 2021, employees can still face arbitrary dismissal unlimited contract uae.
Employers must provide a valid reason for dismissal, and employees have the right to seek legal recourse if they believe they have been unfairly treated.
It is essential to consult a trusted labour lawyer, such as Al Mulla Labour Lawyer & Legal Consultant, for advice and representation in such cases.
By understanding the legal framework, common grounds for dismissal, and consequences of arbitrary dismissal, employees can protect their rights in the workplace.
Contact the office of Al Mulla via Whatsapp. Click here. Or visit us at our law firms: Dubai. You can also call us on phone: 00971501961291.
We recommend you read about the Cancellation of employment contract in Dubai from Labor Lawyer 2023 and the Early termination of employment contract in Dubai.
Also, learn about the UAE labour law termination unlimited contract in Dubai.
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.