How to Handle Wrongful Termination in UAE & Free Zones

Picture this: You arrive at your office on a Tuesday morning, only to find your access card deactivated and a termination letter waiting on your desk. No warning, no explanation, just an abrupt end to your career. If this scenario sounds familiar, you’re not alone. 

Employment terminations in the UAE saw a 15% increase in 2024 compared to 2022 as reported by MOHRE, with many contested as wrongful or unlawful dismissals. This surge has created widespread uncertainty and a pressing need for clear, reliable legal guidance for employees.

With groundbreaking 2022–2025 labour law updates under Federal Decree‑Law No. 33 of 2021, the UAE has empowered workers with strengthened protections. This guide centers around your rights, steps to take, and how to pursue justice after a wrongful termination in the UAE.

What Is Wrongful Termination in the UAE?

Wrongful termination, as defined by the UAE Labour Law (Federal Decree-Law No. 33 of 2021, including 2022-2025 updates), happens when an employer dismisses an employee without legitimate legal reasons or adherence to established procedures. This extensive legislation aims to safeguard employees against arbitrary and unjust dismissal practices.

Under Article 47 of the 2021 Labour Law, termination is unlawful if the employee was dismissed as retaliation for:

• Filing a serious complaint with MOHRE
• Pursuing legal action against the employer—if justified by the courts
•  Compensation in such cases is capped at three months’ salary

 During probation periods (up to 6 months), employers may dismiss with 14 days’ notice following 2025 amendments. Despite probation status, the dismissal must still be lawful and non-discriminatory.

Understanding the Different Types of Unlawful Dismissal

It’s crucial to distinguish between various forms of improper termination:

• Wrongful Termination: Dismissal without following proper legal procedures or contractual obligations.
• Unlawful Termination: Termination that violates specific provisions of UAE Labour Law.
• Unfair Dismissal: Termination based on discriminatory or retaliatory reasons.
• Arbitrary Dismissal: Sudden termination without valid cause or proper justification.

Common Examples of Wrongful Termination

Wrongful termination can occur in various forms:

1. Breach of Contract: Termination without adhering to the notice period specified in your employment contract.
2. Discrimination: Dismissal based on protected characteristics such as gender, nationality, or religion.
3. Retaliation: Firing an employee for reporting workplace violations or exercising legal rights.
4. Dismissal During Protected Leave: Termination during periods of sick leave, maternity leave, or annual leave.
5. Procedural Misconduct During Probation: Wrongful termination during the probationary period in the UAE where established procedures were not followed.

Understanding these distinctions is crucial for safeguarding your rights as an employee under UAE Labour Law termination rules.

 Signs You May Have Been Wrongfully Terminated

Recognizing the warning signs of wrongful termination is crucial for protecting your rights. Here are key indicators that your dismissal may be unlawful:

Red Flags to Watch For:

1. Abrupt Dismissal: Being fired suddenly without prior warnings or documented performance problems.
2. Retaliatory Termination: Dismissal occurring immediately after you’ve filed a complaint or asserted your workplace rights.
3. Discriminatory Grounds: Termination based on explicitly stated or subtly implied discriminatory reasons.
4. Contractual Violations: Being fired in a manner that disregards the notice periods or termination protocols outlined in your UAE employment contract.
5. Lack of Transparency: The employer’s failure to provide proper documentation or a written explanation for your termination.

Use our Wrongful Termination Evidence Checklist UAE to compile:

To build a strong case, gather the following documentation immediately:

Get our comprehensive Evidence Checklist by scheduling a free consultation with our legal team.

Mainland vs Free Zone Termination Laws

Mainland (MOHRE)

1. Governed by Federal Decree‑Law No. 33 of 2021 and MOHRE/ministerial regulations
2. Complaint → MOHRE mediation → referral to Labour Court if unresolved

Free Zones (e.g., DIFC, DMCC, JAFZA)

1. Follow specific free zone employment regulations
2. Many replicate MOHRE processes, but disputes escalate through DIFC Employment Tribunal or other free-zone courts

The DIFC Employment Tribunal features English-language proceedings and adherence to international norms, including hearings on discrimination claims, unlike mainland processes.

What to Do If You’re Wrongfully Terminated in the UAE (Step-by-Step)

1. Remain Calm & Document Everything

Refrain from emotional responses. Promptly secure dismissal letters, notices, and emails. Document notes regarding the incident timeline. Photograph your workspace, preserve all digital communications, and compile a comprehensive timeline of events preceding your termination.

2. Review Your Employment Contract

Check for clauses on notice periods, probation,termination clauses and procedures, benefits, Post-employment obligations and disciplinary processes. They determine both your rights and obligations.

3. Collect Evidence

• Email records between you and management
• Dismissal letters and official communications
• Performance reviews and disciplinary records
• Messages from supervisors or HR personnel
• Witness contact information for potential testimonies

4. File a Complaint with MOHRE or Free-Zone Authority

Initiate via MOHRE’s website, in-person or via app. The Ministry aims to resolve cases within 30 days, offering mediation before referring unresolved cases to court.

Timeline and Dispute Escalation Process:

• Initial complaint filing: 1-2 days
• MOHRE mediation attempts: 2-4 weeks
• Referral to Labour Court if mediation fails: Additional 4-8 weeks
• Court proceedings: 3-6 months depending on complexity

5. Seek Legal Consultation

Consider professional legal assistance, especially for complex cases involving:

• Significant compensation amounts
• Contractual disputes
• Discriminatory termination
• Free zone jurisdictional issues

Free consultation wrongful term

6. Understanding Case Duration- How Long Does a Wrongful Termination Case Take?

Typically:

• MOHRE mediation: 30 days
• Labour court (mainland/free zones): 60–120 days, depending on complexity and evidence.

Can I Sue My Employer for Wrongful Termination in the UAE?

Yes, you absolutely can pursue legal action against your employer for wrongful termination in the UAE. The legal framework provides multiple avenues for seeking justice and compensation.

The Legal Process Pathway

MOHRE Mediation → Labour Court → Civil Court

1. MOHRE Resolution: Initial attempt at mediation and settlement
2. Labour Court Referral: If MOHRE mediation fails, cases are referred to specialized labour courts
3. Civil Court Appeal: Final appeal mechanism for unresolved disputes

When to Escalate Beyond MOHRE

Consider court proceedings when:

• MOHRE mediation fails to produce satisfactory resolution
• The case involves significant contract breaches
• Complex legal issues require judicial interpretation
• Employer refuses to cooperate with MOHRE directives

If MOHRE mediation fails or your case involves illegal termination, you can pursue legal action through labour or civil courts. Learn more about your legal options with our UAE civil law specialists.

Understanding Compensation for Wrongful Termination

A. Types of Compensation

1.End of Service Gratuity: Based on your length of service and final salary

If a worker quits after 1-3 years, they get one-third of severance pay, for 3-5 years it’s two-thirds, and after 5 years, they receive the full severance pay in the UAE

2.Notice Pay: Compensation for inadequate notice period

1. 30 days for employees with less than 5 years service
2. 90 days for employees with more than 5 years service

3.Unused Annual Leave: Full encashment of accrued vacation days

4.Unused annual leave: Full encashment of accrued vacation days

5.Up to 3 months’ salary for unlawful dismissal (retaliation cases).

6.Legal fees reimbursement if awarded by court.

B. Compensation Calculator Framework

Use this formula:

Total Compensation = Unpaid Salary + Gratuity + Notice Pay + Leave Encashment + Up to 3 Months Salary for Unlawful Dismissal + Legal Costs

C. Timeline for Payment

Employers must pay all dues within 14 days of termination. Failure to comply may result in fines ranging from AED 5,000 to 1 million. You can enforce payment via MOHRE or court orders.

 Can Expats File Wrongful Termination Complaints?

Absolutely—expats enjoy equal rights under UAE Labour Law, including:

• The right to file a complaint, receive final settlements, or obtain repatriation visas
• After termination, you’re granted a 30-day grace period to either leave the UAE or obtain a new visa.
• If you’ve been suspended, detained, or blacklisted unfairly, MOHRE can intervene to reverse or resolve these restrictions.

Many expatriates wonder, “Can I get my job back after wrongful termination in the UAE?” The simple answer is no. Unless a court orders reinstatement or it’s part of your settlement, your employer is not obligated to rehire you. It’s more common to receive financial compensation instead.

When to Settle vs. Go to Court

Settlement (MOHRE Mediation)

1. Cost-effective: Minimal legal fees and court costs
2. Faster resolution: Typically 2-6 weeks vs. 6-12 months for court
3. Confidential process: Private mediation protects reputations
4. Flexible outcomes: Creative solutions beyond standard compensation

Success Rates: MOHRE mediation successfully resolves approximately 70-80% of employment disputes, making it an effective first step.

 Court Route

Advantages:

1. Binding decisions: Enforceable judgments with legal authority
2. Full legal protection: Comprehensive rights under judicial system
3. Precedent value: Court decisions can influence future cases
4. Higher compensation potential: Courts may award maximum legal limits

 Pros & Cons

Approach	Pros	Cons
Settlement	Speed, lower cost, less formality	May result in lower compensation
Court	Full legal remedy, higher awards possible	More time, expense, formal procedures

Expect legal fees ranging from AED 5,000–20,000 depending on case complexity. Many firms offer 30-minute free case assessments—a smart first step.

How Long Do I Have to File a Wrongful Termination Claim?

Time is critical in wrongful termination cases. Employers and employees now have two years from the termination of the employment relationship to file a labour claim, an increase from the previous limit of one year.

Statutory Limitation Periods

Standard Cases: 2 years from the date of termination for most employment disputes

Special Circumstances:

1. Ongoing violations: Time limits may extend for continuing breaches
2. Fraudulent concealment: Discovery rule may apply when employer hides wrongdoing
3. Minors or incapacitated persons: Extended time limits may apply

Finding the Right Legal Support in Dubai

When choosing a wrongful termination lawyer in Dubai, consider:

• Legal Experience
  Look for a lawyer with at least five years of experience in UAE labour law, specifically handling wrongful termination cases. They should be familiar with both mainland and free zone regulations to guide you effectively.
• Communication Skills
  Your lawyer should clearly explain legal steps, speak your preferred language, and provide timely updates. Being responsive and easy to communicate builds trust during the process.
• Technical Expertise
  Choose someone well-versed in UAE labour law updates, MOHRE procedures, and compensation calculations. Free zone knowledge is a plus, especially if your employment was outside the mainland.
• Client Service Standards
  The best lawyers are transparent about fees, honest about case outcomes, and maintain confidentiality. Cultural understanding and professionalism also make a big difference.
• Support Resources
  For help, contact MOHRE’s 24/7 helpline at 800 60, or check with your free zone’s legal support. Legal aid groups and bar associations also offer guidance or free consultations.

Frangulf Advocates offers comprehensive free consultations for wrongful termination cases, providing:

1. Initial case assessment and merit evaluation
2. Explanation of available legal options
3. Realistic timeline and cost estimates
4. Strategic recommendations for case approach

UAE Employment Law Updates 2025: What’s New?

1. Extended limitation period: now 2 years 
2. Maternity rights enhanced: zero tolerance for firing pregnant employees.
3. Expanded anti-harassment & discrimination protections, with penalties from AED 5,000 to 1 million
4. Mandatory fixed-term contracts (max 3–4 years)
5. Employers now bound to pay end-of-service benefits within 14 days

These reforms enhance worker protections and create stronger legal avenues for contesting wrongful dismissals.

Conclusion & Final Advice

You are not alone. The UAE’s evolving legal system now provides substantial protection for wrongfully terminated employees—mainland or free zone, Emirati or expat.

Take action:

• Document, file, consult
• Weigh settlement vs. court
• Access free legal advice from specialists

 Claim your free consultation or claim your Wrongful Termination Evidence Checklist now through Frangulf—your first step toward justice and relief.