The maximum compensation expected for arbitrary dismissal

The Employment Contract does not have any mention for Arbitrary Dismissal.

I understand the court gives up to 3 months of compensation for arbitrary dismissal. My question is with regards to that.

According to the UAE Labour Law, the maximum additional compensation that can be awarded for an ‘arbitrary dismissal’ of an employee is three months’ remuneration, calculated based on the last payment received by the employee prior to dismissal.

For determining the amount of compensation, the Court will consider the type of work, the extent of damage incurred to the employee and the total period of the employment. The amount, however, should not exceed three months of wages.

In addition to the aforementioned compensation, the employee can claim his gratuity, notice period dues, payment in lieu of untaken leave or any other unpaid dues and post-termination entitlements he is entitled to from his employer under UAE Labour Law.

For the purpose of computation, the term ‘remuneration’ refers to an employees’ full pay (basic salary plus any monthly allowances).

In addition, where the employee receives regular or guaranteed bonus or commission payments, these may also be considered by the Court while determining the employee’s remuneration.

The actual amount of the award, if any, is ultimately determined by the Court.

Thanks!