Ask Gulf News: When termination is not considered arbitrary dismissal?

Question: I am an employer and I want to terminate an employee who has been working with my company for 8 years. Will this termination be treated as arbitrary dismissal, and what compensation exposure could arise?

Answer: This termination will not be treated as arbitrary dismissal according to Article (47) of the Federal Labour Law, which states that an employee is entitled to compensation for arbitrary dismissal only in two cases: if the termination of the worker’s service is due to filing a serious complaint with the Ministry, or filing a lawsuit against the employer, the validity of which is proven.

The employer has the right to terminate the contract for any legitimate reason, just as the employee has the right to resign for any reason, provided that both parties comply with the notice period agreed upon in the contract, in accordance with Article (43) of the Law. Work must continue to be performed during the notice period.

If the termination is due to filing a serious complaint with the Ministry or a lawsuit against the employer, the court will determine the amount of compensation, provided that it does not exceed the worker’s wage for a period of three months, calculated based on the last full wage received. The amount of compensation will be determined by taking into account the type of work, the extent of damage caused to the worker, and the length of service.