With a Focus on Timeframes and Unlawful Termination under UAE Labour Law
Introduction
Labour disputes in the United Arab Emirates (“UAE”) are primarily governed by Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations (the “Labour Law”) often follow a dual track: initial proceedings before the Ministry of Human Resources and Emiratisation (“MOHRE”), followed by possible escalation to the courts.
This overview focuses on how MOHRE complaints, particularly in cases involving claims of unlawful termination, can impact subsequent labour cases, especially in the context of unlawful termination claims under Labour Law. Also, it examines the statutory framework governing termination of employment, procedural timelines, and the legal consequences of complaints lodged with the Ministry of Human Resources and Emiratisation.
Unlawful Termination of Employment:
Article 47 outlines the limited circumstances in which a termination is deemed unlawful, namely:
- If the employee is dismissed due to filing a serious complaint with MOHRE; or,
- If the dismissal is a retaliatory act in response to legal proceedings initiated by the employee—provided that the complaint is proven to be serious and valid.
In essence, the law allows termination for any reason (or no reason), as long as it complies with the legal framework (e.g., proper written notice as stipulated in the contract ranging from 30 to 90 calendar days as prescribed by law and end-of-service benefits, and that termination complies with applicable legal procedures). However, compensation for unlawful termination (equivalent to 1 to 3 months of salary) is only awarded if the termination is clearly linked to a serious and substantiated complaint filed with MOHRE prior to the dismissal.
In practice, the threshold for a “serious complaint” is assessed on the basis of evidence and MOHRE’s findings. In another words, mere filing of a complaint does not automatically grant protection to the employee against termination.
Claims Not Exceeding AED 50,000, MOHRE’s Authority:
According to Article 54(2) of the Labour Law:
“The Ministry shall resolve the dispute by a resolution whenever the value of the claim subject to the dispute does not exceed (50,000) fifty thousand AED, or whenever the dispute concerns the failure of either party to comply with the amicable settlement resolution previously issued on the subject by the Ministry, regardless of the value of the claim.”
This means that MOHRE has exclusive authority to issue binding decisions in claims under AED 50,000.
The only method to challenge such a decision is through an appeal before the competent Court of First Instance within 15 working days of receiving notice of the MOHRE decision, with noting that the court’s ruling in this case will be final and non-appealable.
Many practitioners mistakenly interpret this period as 15 calendar days, following the general practice in other legal deadlines. However, Article 54(3) explicitly states:
“… The decision of the Ministry issued on the dispute according to the powers stipulated in Clause (2) of this Article shall have the power of a writ of execution, and shall be stamped with the executory formula according to the usual procedures, and any party to the dispute may file a lawsuit before the competent Court of Appeal to consider the subject-matter of the dispute within (15) working days from the date of notification of the decision..”
Therefore, weekends and public holidays must be excluded when counting the limitation period, making accurate calculation critical in such matters.
Case Study
In a recent case we faced, defending the employer, the employee was terminated with notice due to repeated instances of absenteeism. The employee subsequently raised a complaint with MOHRE, which ruled in favour of the employer and dismissed the complaint. The employer has paid the notice period in full.
However, the employee filed a second complaint, this time seeking compensation of 3 months’ salary for unlawful termination, alleging that the dismissal was in retaliation for the earlier complaint to MOHRE.
MOHRE has resolved the dispute under its AED 50,000 jurisdiction. The employee then filed a case before the competent First Instance Court, 23 calendar days after MOHRE’s decision. At first glance, this appeared beyond the 15-day deadline. However, when excluding weekends and the Eid holiday, the court found that the filing was within the 15 working day period and accepted the case in form.
However, the court has dismissed the case on the merits, finding that the earlier complaint was not serious or substantiated, and that the termination was justified and not retaliatory, since it lacked the link with the earlier complaint.
Conclusion
In conclusion, the UAE Labour Law, as set out in Federal Decree-Law No. 33 of 2021, requires strict adherence to both procedural timelines and substantive legal thresholds. Legal terms such as “notice period,” “serious complaint,” and “working days” must be interpreted literally, not loosely or emotionally.
MOHRE plays a critical procedural and substantive role in labour disputes, particularly for claims under AED 50,000, but its decisions remain subject to judicial review under clearly defined conditions.
As demonstrated by the case study, the success or failure of a labour claim hinges not just on the facts but on strict compliance with statutory definitions and deadlines. Employees and employers alike must ensure that actions are taken within the precise legal framework to preserve their rights.
