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Federal Decree-Law No. 33 of 2021 defines arbitrary dismissal as a termination that occurs because an employee submitted a serious complaint to the Ministry of Human Resources and Emiratisation or pursued a court action later proven valid. Article 47 of the law requires employers found to have acted arbitrarily to pay fair compensation determined by the competent court, taking into account the nature of the work, the harm caused to the employee and the duration of service. In all cases the compensation cannot exceed three months of the worker’s last salary and remains separate from notice pay, end-of-service gratuity and any unused leave entitlements that must also be settled.
A Khaleej Times review of the regulations recommends that affected employees promptly file a complaint with MOHRE, which serves as the mandatory first step in the dispute resolution process. The ministry works to facilitate an amicable settlement between the parties, drawing on its authority under Cabinet Resolution No. 1 of 2022. If no agreement is reached within 14 days, MOHRE refers the matter to the labour court in the emirate of the employer’s registration, where the employee must present evidence that the dismissal was retaliatory.
Ministry of Human Resources and Emiratisation figures show the authority processed 185,793 labour disputes in the first half of 2026 and achieved amicable settlements in 98.6 per cent of them, referring only 2,481 cases to the judiciary. The high settlement rate reflects the efficiency of the digital complaint system accessible online, through the MOHRE app or at service centres with supporting documents such as the employment contract and termination notice. Employees who proceed to court after receiving a referral letter can seek a full adjudication of their claims, including any compensation for arbitrary dismissal.
In one case reported by Gulf News, an Abu Dhabi labour court awarded a woman more than Dh61,000 after ruling that her termination following 18 years of service failed to meet legal notice requirements.
Courts retain wide discretion when calculating awards within the statutory cap, and legal specialists stress that success depends on substantiating the link between any prior protected complaint and the subsequent dismissal. The same federal law entitles qualifying employees to end-of-service gratuity of 21 days’ basic wage per year for the first five years and 30 days per year thereafter, subject to a two-year salary ceiling. Workers are advised to retain all payslips, correspondence and performance records to support their position before MOHRE or in litigation.
