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Understanding the Process for Challenging Unfair Dismissal in the UAE

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Question: I was recently terminated from my job and believe I may have grounds to challenge it as an unfair dismissal. If I decide to pursue this, what does the process typically involve? Could you walk me through the steps?

Answer: Based on your inquiry, it is presumed you were employed by a company registered in mainland UAE, and thus, the UAE employment law, including its cabinet resolutions and amendments, applies to your situation.

In the UAE, if an employee is terminated without a valid reason, this may be classified as arbitrary termination according to Article 47 of the Federal Decree-Law No. 33 of 2021 Regarding the Regulation of Employment Relationships and its amendments (the “Employment Law”). An employee facing arbitrary termination can lodge a complaint with the Ministry of Human Resources & Emiratisation (MOHRE) against their employer. The MOHRE will then seek to resolve the dispute amicably, as outlined in Article 1 of the Federal Decree Law No. 09 of 2024 Revising some Provisions of Federal Decree-Law No. 33 of 2021 Concerning Labour Relations (the “Amended Employment Law”), which modifies Article 54 of the Employment Law.

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“In the event of a dispute between an Employer and an Employee or their beneficiaries under the provisions of this Decree-Law, the dispute shall be submitted to the Ministry for resolution. This application will be examined by the Ministry and the necessary steps will be taken in order to resolve the dispute amicably.”

If the MOHRE cannot resolve the dispute amicably, it must refer the matter to the appropriate court in the emirate where the employer is registered within 14 calendar days from the employee's complaint submission, as per Article 31(2) of the Cabinet Resolution No. 1 of 2022 on the Implementation of Federal Decree Law No. 33 of 2021 regarding the Regulations of Employment Relations.

“If an amicable settlement is not possible, the Ministry shall refer the dispute to the competent court within (14) fourteen days from the date of submission of the complaint, along with a memorandum including an abstract of the dispute, the arguments of both parties and the Ministry’s recommendation.”

Moreover, if the dispute amount is less than Dh50,000, the MOHRE can resolve such disputes within its jurisdiction, in accordance with Article 1 of the Amended Employment Law, which modifies Article 54 (2) of the Employment Law.

“The Ministry shall have jurisdiction to resolve the dispute by a decision in all cases involving disputes whose value does not exceed Dh50,000 (Fifty thousand dirhams) or whose dispute is concerning either party failing to adhere to an amicable settlement decision previously issued by the Ministry, regardless of the claim's value.”

A decision made by the MOHRE for disputes not exceeding Dh50,000 can be enforced in a competent court. Both the employer and employee have the right to file an objection with the competent court of first instance within 15 working days following the notification of the MOHRE's decision. The court will hold a hearing within 3 working days and issue a final ruling within 30 working days. Once a case is filed, the MOHRE's decision will not be implemented until the court delivers its final judgment, as stated in Article 1 of the Amended Employment Law, which modifies Article 54(3) of the Employment Law.

Additionally, if the dispute persists, the MOHRE can direct the employer to pay the employee's wages for up to two months, according to Article 1 of the Amended Employment Law, which modifies Article 54(5) of the Employment Law. “If the dispute continues, the Ministry may order the employer to pay the employee’s wage for a maximum period of (2) two months, provided that the dispute has resulted in the withholding of such payment in accordance with the provisions of this Decree-Law’s Implementing Regulation.”

Based on the aforementioned legal provisions, you can file a complaint with MOHRE against your employer for termination without a valid reason. However, you will need to provide evidence to demonstrate that the termination was arbitrary. If you can prove this, you may be entitled to compensation for arbitrary termination, in accordance with Article 47(2) of the Employment Law. If there is no amicable resolution or if the MOHRE's ruling is unsatisfactory, consider pursuing the matter through the appropriate court in the UAE.

Applicable law:

1. Federal Decree-Law No. 33 of 2021 Regarding the Regulation of Employment Relationships and its amendments

2. Federal Decree Law No. 09 of 2024 Revising some Provisions of Federal Decree-Law No. 33 of 2021 Concerning Labour Relations

3. Cabinet Resolution No. 1 of 2022 on the Implementation of Federal Decree Law No. 33 of 2021 regarding the Regulations of Employment Relations

Ashish Mehta is the founder and managing partner of Ashish Mehta & Associates. He is qualified to practice law in Dubai, the United Kingdom, and India. For more information about his firm, visit www.amalawyers.com. Readers may send their questions to [email protected] or submit them to Legal View, Khaleej Times, PO Box 11243, Dubai.

Disclaimer: The information provided above is intended for general guidance and does not constitute legal advice. It is recommended to seek formal legal counsel if needed.