UAE private-sector employment is governed by Federal Decree-Law No. 33 of 2021, which sets clear rules for ending a job contract. An employer may lawfully terminate an employee with valid cause by giving 30 to 90 days' written notice. However, if a worker is dismissed without a valid reason, the law treats this as "arbitrary dismissal," giving the employee grounds to seek redress.
Under the law, a dismissal is considered arbitrary specifically when the employee has filed a serious complaint with the Ministry of Human Resources and Emiratisation (Mohre), or has brought a claim later proven valid, and is then terminated as a result. The first step for an affected worker is to submit a complaint to Mohre, which attempts to reach an amicable settlement between the two sides. If no agreement is reached, the case moves to the UAE labour courts.
Importantly, compensation for arbitrary dismissal is calculated separately from end-of-service gratuity and notice-period pay. The law caps this specific compensation "not to exceed three months' salary of the employee, calculated based on the last salary received" — meaning courts have discretion within that ceiling rather than a fixed payout.
Ashish Mehta, founder of the law firm Ashish Mehta & Associates, advises that workers should keep employment records and correspondence on hand, since strong documentation is essential to prove a claim before Mohre or the courts. This guidance is particularly relevant for the UAE's large expatriate workforce, who make up the majority of private-sector employees and may be unfamiliar with the formal complaint process available to them.