A Dubai employee who was terminated within one week of joining a new company has raised concerns about legal rights and compensation. The employer cited company restructuring as the reason for termination. Given the circumstances, the employee wants to know whether they can take legal action against the company.
Probation Period Termination Rules in UAE
According to Article (1) of Federal Decree Law No. 33 of 2021 on the Regulation of Employment Relations, an employer in the UAE can terminate an employee during probation by serving a 14-day notice period.
The law states:
"An employer may employ an employee on probation for a period not exceeding six months from the service commencement date. The employer may terminate the employee during such period by giving the employee fourteen days’ prior written notice."
If the employer fails to provide the required notice period, they may be required to compensate the employee.
Compensation for Breach of Notice Period
As per Article 9(5) of the Employment Law, if either the employer or employee fails to comply with the notice period, they are required to pay compensation equivalent to the salary for the remaining notice period.
This means that in this case, since the employee was terminated after just seven days of a 14-day required notice, they may be eligible for compensation for the remaining seven days of salary.
Claiming Compensation for Arbitrary Dismissal
If an employee believes that they were terminated unfairly, they can file a complaint with the Ministry of Human Resources and Emiratisation (MOHRE) and seek compensation for arbitrary dismissal under Article 47 of the UAE Employment Law.
According to Article 47:
- If an employee is dismissed for filing a serious complaint or legal case against the employer, the termination is considered arbitrary.
- If a court rules that the dismissal was arbitrary, the employer must compensate the employee.
- The compensation cannot exceed three months' salary, based on the employee’s last drawn wage.
Steps an Employee Can Take
If an employee has been terminated within one week of joining, they can take the following steps:
- File a complaint with MOHRE – Employees can report the issue to the Ministry of Human Resources and Emiratisation (MOHRE) and claim compensation for the remaining notice period salary.
- Claim compensation for arbitrary dismissal – If the termination was unjustified, employees may seek up to three months of salary as compensation.
- Negotiate with the employer – In some cases, the employer may offer a settlement to resolve the issue amicably.
Key Takeaways for Employees
- Employers must provide 14 days' notice before terminating an employee during probation.
- Failure to serve the full notice period requires compensation for the remaining days.
- Employees can claim arbitrary dismissal compensation if the termination lacks a valid reason.
- Legal action through MOHRE is an option for affected employees.
