Arab News
khaleej times, Sat, Feb 08, 2025 | Shaaban 9, 1446
Dubai jobs: Can employees claim compensation if terminated within one week of joining?
Emirates:
Question: I recently switched jobs and joined a new company in mainland
Dubai. But I was terminated within a week of joining, citing the restructuring
of the company. I’m clueless because the previous company is not hiring due to
both firms being competitors. Can I take this new company to court and file
claims? What are my rights in this case?
Answer: In the UAE, an employer may terminate an employee during probation by
serving 14 days of notice to an employee. This is in accordance with Article (1)
of the Federal Decree Law No. 33 of 2021 on the Regulation of Employment
Relations, which states, “The employer may employ the 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.”
This is in accordance with Article 9(5) of the Employment Law, which states, “If
either party terminates the employment contract without complying with the
provisions of this article, he shall pay the other a compensation equal to the
employee’s salary due for the notice period, or the remainder thereof.”
Furthermore, if an employee does not agree to terminate the employment
relationship by mutual agreement, then he/she will have the right to claim
compensation for arbitrary dismissal. The termination of the employment
relationship as part of a restructuring process with the employer may be
considered arbitrary dismissal.
In this regard, the provisions of Article 47 of the UAE Employment Law may be
referred to. It reads as follows:
1. The dismissal of an employee by his employer shall be arbitrary if the
employee submits a serious complaint to the ministry or files an action proven
to be valid against the employer.
2. The employer shall pay the employee a fair compensation estimated by the
competent court if it is found that the dismissal is arbitrary pursuant to
paragraph (1) above.
The amount of compensation shall be determined based on the type of work, the
extent of harm sustained by the employee and the length of his service. In any
case, the amount of compensation shall not exceed three months’ wage of the
employee calculated based on the last wage received by him.
3. The provisions of paragraph (2) above shall not prejudice the right of an
employee to the pay in lieu of notice and severance pay due to him under the
provisions hereof.”
Based on the aforementioned provisions of law, your employer may terminate
you during the probation period by serving a stipulated notice period with a
valid reason. As you were terminated by your employer by only seven days of
the notice period, you may approach the Ministry of Human Resources and
Emiritisation and claim compensation from your employer for the remainder of
seven days of the notice period not served on you while it terminated your
employment contract.
Furthermore, if you feel your employment was terminated without a valid
reason, you may claim compensation of up to three months of salary from your
employer on grounds of arbitrary termination.