Is termination with a 30-day notice but without a valid reason considered arbitrary dismissal?

Dear User,

Yes, this may be considered an arbitrary (unlawful) dismissal under Article 47 of the UAE Labour Law.

If it is proven that the termination was arbitrary, you may be entitled to the following:

- Compensation for arbitrary dismissal,

- End-of-service benefits for the actual period of your employment, and

- Payment in lieu of unused annual leave (if applicable).

Since it is a limited-term contract, the general rule is that both parties must fulfill the full contract duration unless there is a legitimate reason for early termination.

You can file a complaint with the Ministry of Human Resources and Emiratisation (MOHRE) through their mobile app, website, or by calling 80060.

If an amicable settlement cannot be reached, the case will be referred to the Labour Court.

Hi,

Under UAE Labour Law, being terminated from a limited 24-month contract at the 10th month with a 30-day notice but without a valid reason, prior warning, or documented performance issues may qualify as arbitrary dismissal.

In such cases, the dismissal can be challenged as unlawful. The law allows the employee to claim compensation for arbitrary dismissal, which can be up to three months’ salary based on the last wage, covering basic salary plus allowances.

Additionally, the employee is entitled to:

- Payment for the notice period (if not worked),

- Unpaid wages and benefits,

- End-of-service gratuity calculated on the full duration of service, and

- Any accrued leave or bonuses.

To pursue a claim, the employee must file a grievance with MOHRE and, if necessary, take the case to the labour court. Courts look for evidence like a lack of formal warnings or documented misconduct to decide if dismissal was arbitrary.

Prompt legal advice and proper documentation are key to maximizing compensation and protecting rights in such termination cases.

Hello,

Thank you for reaching out!

Based on the details you’ve shared, your early termination from a 24-month limited contract—without any valid reason, prior warning, or performance issue—may qualify as arbitrary dismissal under UAE Labour Law (Federal Decree-Law No. 33 of 2021, Article 47).

If proven, you could be entitled to compensation of up to three months' salary, in addition to notice period pay, end-of-service benefits, and any other outstanding dues.

To provide you with a clear assessment and guide you on the best legal strategy, I recommend scheduling a meeting. For more details, please contact us at [--------------].

Dear Questioner,

Thank you for your message!

Under the UAE Labour Law (Federal Decree-Law No. 33 of 2021), if you are employed under a limited-term contract (24 months) and your employer terminates the contract before its expiry without a valid reason related to performance, misconduct, or company restructuring, such termination may be considered unjustified/illegal.

In such cases:

Compensation for Early Termination – You may be entitled to up to three months’ salary or the remaining salary for the unexpired portion of the contract (whichever is less).

Arbitrary Dismissal Compensation – If the termination is proven to be arbitrary (no valid legal reason), the court may also award compensation equivalent to up to three months of your basic salary.

Other Entitlements – In addition, you remain entitled to:

- Payment of your notice period (30 days, if served),

- Any accrued leave salary, and

- End of service gratuity (if you have completed at least 1 year of service; otherwise, gratuity does not apply).

Next Steps – We recommend:

Collecting and keeping all written communications (termination letter, emails, contract copy).

If an amicable settlement is not possible, you may file a case with the Ministry of Human Resources & Emiratisation (MOHRE) to claim your compensation.

Please note, each case depends on specific facts and supporting documents. We can review your employment contract and termination notice in detail to advise on the exact claim value you may pursue.

Best regards,

Mohammed Salah

Legal Consultant

Thank you for contacting us via Legal Advice Middle East!

Your matter involves early termination of a limited 24-month contract while you are only in your 10th month, without justification.

We have defended clients in nearly identical cases, where the employer attempted to end a fixed-term contract prematurely with only a notice letter. In those cases, the court recognised it as an arbitrary dismissal and awarded the employee compensation in addition to salary dues.

There are several points in your favour. Termination of a limited contract without valid grounds or proven misconduct is generally treated as arbitrary.

In such situations, you may claim compensation up to the balance of the contract or a capped amount, alongside notice pay, end-of-service benefits, accrued leave salary, and any other contractual dues. The fact that you have no disciplinary record strengthens your case.

The most effective way to protect your rights is to file a complaint with MOHRE. If the employer does not settle fairly, the case is referred to the labour court, where your claims can include arbitrary dismissal compensation.

Our strategy in similar matters is to prepare a strong file showing the absence of legal cause for dismissal and pushing for maximum recovery under the law.

To guide you precisely, we would need to review your employment contract, the termination letter, and your pay records. Our multilingual consultants (Arabic, English, Russian, Hindi, and Chinese) can assist you through MOHRE and court proceedings to secure your entitlements.

For direct support, please contact us via WhatsApp at [-------------].

Greetings,

Since a termination notice was served as per the terms of your employment contract then the termination is valid.

It will not be regarded as unfair dismissal. You are entitled to whatever unpaid salaries plus unused leave encashment.

Best Regards,

Termination of your fixed-term contract by your employer within the tenth month is considered an arbitrary dismissal without legitimate reasons or prior notice.

You are entitled to compensation equal to two months' salary or the salary for the remaining period of the contract, whichever is less, in addition to 30 days' notice pay if your employer fails to comply with the notice period. You are also entitled to your due end-of-service gratuity.