Dubai: How can employee sue employer for wrongful termination

Question: I used to work in a mainland Dubai company and plan to sue my employer for wrongful termination. Can you please explain the process to me? Where do I go? What documents would I need? How long does the process typically take? What will I get at the end of it?

Answer: In this case, the provisions of the UAE employment law and its cabinet resolution and subsequent amendment are applicable. It is assumed that the value of the dispute or the claim amount does not exceed Dh50,000.

In the UAE, if an employee feels that an employer has terminated his/her employment without a valid reason then such action by an employer may be considered as arbitrary termination in accordance with Article 47 of the Federal Decree-Law no. 33 of 2021 Regarding the Regulation of Employment Relationships and its amendments (the “Employment Law”). In case of an arbitrary termination, an employee may file a complaint with the Ministry of Human Resources & Emiratisation (Mohre) seeking amicable settlement with an employer or to pass an order.

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Based on a complaint filed by an employee against an employer, the Mohre will try to settle the dispute between an employer and an employee amicably. This is in accordance with the Article 1 of the Federal Decree Law No. 09 of 2024 Revising some Provisions of Federal Decree-Law no. 33 of 2021 Concerning Employment Relations (the “Amended Employment Law”) amending the provision of the Article 54 of the Employment law, which states,

“In the event of a dispute between the employer and the 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.”

The Mohre has the authority to resolve disputes under its jurisdiction and pass an order in an employment dispute. This applies specifically to cases where the value of the dispute does not exceed Dh50,000. This is in accordance with Article 1 of the Amended Employment Law amending Article 54 (2) of the Employment Law which states:

“The ministry shall have jurisdiction to resolve the dispute by a decision in all cases involving disputes whose value does not exceed Dh50,000 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.”

Further, the Mohre's decision in a employment dispute may be enforced. Both parties have the right to file a case within 15 working days from the notification of the Mohre's decision before the competent court of first instance. The court should schedule a hearing within three working days and issue a final ruling within 30 working days. Once a case is filed, the Mohre's order may be put on hold until the court which has jurisdiction delivers its final judgement, which is binding and not subject to further appeal. This is in accordance with the Article 1 (3) of the Amended Employment Law.

Furthermore, if an employment dispute continues, the Mohre has the authority to pass an order to the employer to pay the employee's salary for up to two months. This is in accordance with Article 1 of the Amended Employment Law amending Article 54(3) 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 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 provisions of law, you may file a complaint with Mohre if you feel that your employment has been terminated by your employer without a valid reason. However, you may have to provide substantial evidence proving that the termination was arbitrary in nature. You may be entitled for compensation on grounds of arbitrary termination, if proved that the termination was arbitrary, in accordance with Article 47(2) of the Employment Law and it is at the discretion of the Mohre (if your claims does not exceed Dh50,000. If there is no amicable settlement or the order passed by Mohre is not satisfactory, you may consider pursuing the matter through the relevant court in the UAE that has jurisdiction to resolve the matter.

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