Arbitrary Dismissal as per New UAE Labour Law

April 30, 2022

Arbitrary Dismissal or Wrongful Dismissal as per new UAE Labour Law 2022

It is not a new Labour Law indeed, but it has been a great revision and advancement until now, as of now. UAE Labour Law is made much more flexible and shorter than before. For example, now there will be only one type of Employment Contract which is “Fixed Term” also called a Limited Employment Contract, for the time period of two years or three years. New UAE Labour Law 22, is not favourable to any party. It is favourable to both parties, which is the employer and employee. Arbitrary Dismissal, Wrongful Dismissal, or Unlawful dismissal are a few names of Unlawful Termination or Arbitrary Termination. Such disputes are solved by Labour and Employment Lawyers and luckily Dubai has a few best Labour and Employment Lawyers in Dubai, also known as Unlawful dismissal lawyers.

It came into effect in 2022 and the exact date was 2nd February 2022. It is based on Federal Law which is Federal Law – Decree No. 33 of 2021. It has fully replaced the OLD Labour Law UAE which came in 1980 with Federal Law – Decree No. 8 1980. It is a Federal Law applicable in all over the UAE, for Mainland Companies and Free Zone Companies except for two free zones:

As per the new law, any party can terminate the labour and employment contract. There must be a valid and genuine reason indeed. Either party has to give the notice first to the second party. The absence of a “VALID Reason” still can cause the reason for compensation like before. However, the concept of Arbitrary Dismissal in New UAE Labour Law is described as:

·      Now Arbitrary Dismissal is only valid when it is found that Retaliation has been done.

·      When Termination is performed without a Notice or without a Valid Reason.

·      If an employee can prove that termination has been fully invalid.

·      Now the reason for Arbitrary Dismissal has also been reduced.

·      Employers get more options to terminate the employees just by following the rules and the new UAE Labour Law.

·      Employee’s claim will only be accepted if he could accept that it has been a retaliation, politics inside the company behind the false termination.

·      The coming practical implementation will clear the concept.

Probation Termination:

·      Employer can terminate the employment contract but he has to give 14 Days of Written Notice, prior to termination.

·      If Employee has to resign in the probation period, then 1 Month written notice. New Employer will also pay the cost of VISA/Employment Processing to the old employer.

·       14 Days Written Notice if the employee wants to leave UAE. If he comes back to the UAE within 3 Months then the new employer will also pay the cost of the last VISA Processing/Employment Cost to the last employer.