
The article addresses the legal issue of whether employees can claim compensation for unfair dismissal after experiencing salary cuts in the UAE. The legal framework is anchored in Article 25 and Article 46 of the labor law, which prohibit unauthorized wage deductions and define unlawful termination grounds. Courts may award compensation up to three months' wages based on job type, service length, and damages incurred. Practically, workers must file claims within one year of termination, though exceptions exist for commission disputes with written agreements. This guidance primarily assists employees seeking to understand their rights following dismissal and salary reduction.
Generated by AI · Not legal advice
- Article 25 of the labor law prohibits deductions from worker wages except in cases specifically permitted by law.
- Workers may claim compensation for arbitrary dismissal if the court determines the termination was unlawful under Article 46.
- Compensation for unlawful termination is capped at three months' wages calculated based on the worker's last salary.
- The right to claim compensation does not affect entitlement to notice period allowance and end of service benefits.
- Claims for compensation for unlawful termination must be filed within one year from the date the right became due.
- Workers may still claim unpaid commissions if there is a written agreement or if the commission was consistently part of their salary structure.
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James O'Connor focuses on UAE civil litigation, arbitration, and enforcement of judgments. He covers ADGM and DIFC court procedures, commercial arbitration under UAE Federal Arbitration Law, and the practical steps involved in filing claims, enforcing awards, and managing debt recovery in the UAE.
