Dubai: Are Employees Entitled to Compensation if Terminated Within a Week of Joining?

Question: I recently joined a new company in mainland Dubai, but was terminated within a week due to the company's restructuring. The problem is, the previous employer is not hiring me back because both companies are competitors. Am I entitled to take legal action against the new company, and what rights do I have in this situation?

Answer:  In the UAE, during the probation period, an employer can terminate an employee with 14 days’ notice, as per Article 1 of the Federal Decree Law No. 33 of 2021. If the notice period is not followed, the party in breach may have to compensate the other, as stated in Article 9(5) of the Employment Law.

If the termination occurs without mutual agreement, the employee may claim compensation for arbitrary dismissal. According to Article 47 of the UAE Employment Law, an employee is entitled to compensation if the dismissal is deemed arbitrary, especially if proven to be without a valid reason. The compensation is based on the employee’s job, the harm caused, and length of service, with a maximum of three months’ wages.

In your case, since you were terminated with only seven days' notice, you can approach the Ministry of Human Resources and Emiratisation for compensation for the remaining notice period. Additionally, if your dismissal was without a valid reason, you may be entitled to compensation of up to three months' salary for arbitrary dismissal.

News Source: Khaleej Times