Arbitrary Dismissal in UAE: How to Claim 3 Months' Compensation [2026]

Arbitrary dismissal is one of the most powerful protections UAE labour law gives employees. Under Article 47 of Federal Decree-Law No. 33 of 2021, if your employer fired you for reasons not related to your work performance, you can claim up to 3 months' gross salary as compensation — on top of your other entitlements.

What Qualifies as Arbitrary Dismissal?

Article 47 states that termination is arbitrary when it is not connected to the employee's work. Common examples:

No reason given — Employer simply says "your services are no longer required" without explanation
Retaliation — Fired after filing a MOHRE complaint or reporting a violation
Personal conflicts — Terminated because of disagreements with management unrelated to job duties
Discrimination — Fired based on nationality, age, gender, or religion
Whistleblowing — Terminated after reporting fraud, safety violations, or illegal activities
Cost-cutting disguised as performance — Laid off but told it's "performance" without prior warnings or documentation

The Compensation

If a court finds the dismissal was arbitrary:

Entitlement	Basis	Article
Arbitrary dismissal compensation	Up to 3 months' gross salary	Article 47
Notice period compensation	30-90 days salary (unserved days)	Article 42
End-of-service gratuity	21/30 days per year of basic salary	Article 51
Accrued leave encashment	Daily wage × unused days	Article 29
Unpaid salary	Any outstanding wages	Article 22

Example: An employee with AED 15,000 gross salary, 5 years service, and 30-day notice period who was arbitrarily dismissed could claim:

Arbitrary dismissal: AED 45,000 (3 × 15,000)
Notice period: AED 15,000 (30 days)
Gratuity: ~AED 35,000 (5 years × 21 days)
Total: ~AED 95,000

Calculate your exact settlement amount here.

How to Prove Arbitrary Dismissal

Get the termination in writing — Email your employer asking for the specific reason. Save all responses.
Check for prior warnings — If you have none, the employer will struggle to claim performance issues.
Document the timeline — Note if the termination came right after a complaint, leave request, or disagreement.
Gather performance evidence — Good performance reviews, positive emails, completed projects all undermine the employer's case.
Collect witness statements — Colleagues who can confirm the real reason for termination.

The MOHRE Process for Arbitrary Dismissal Claims

File a MOHRE complaint within 14 days of not receiving your settlement (or immediately if you believe the dismissal was arbitrary). Call 80060 or use the MOHRE app.
MOHRE mediation — A mediator will hear both sides and attempt resolution within 14 working days.
Claims ≤ AED 50,000 — MOHRE can issue a binding decision. No court needed.
Claims > AED 50,000 — If mediation fails, MOHRE refers the case to labour court. The court must schedule the first hearing within 3 working days.
Court timeline — Labour courts in UAE typically resolve cases within 3-6 months.

Filing deadline: You have 2 years from the date of termination to file a claim.

What to Do If Your Employer Offers a Settlement

Employers often offer a quick settlement to avoid MOHRE complaints. Before accepting:

Use the termination settlement calculator to know your minimum legal entitlement
Remember that arbitrary dismissal compensation (3 months) is on top of the minimum
Never sign a "full and final" document without understanding what you're waiving
Consult a lawyer for claims exceeding AED 100,000

Related Resources

Was Your Termination Legal? — Free assessment tool
Settlement Calculator — Calculate the exact amount
Fired Without Notice: Complete Guide
MOHRE Complaint Letter Generator
AI Employment Rights Assistant