What compensation is due for unlawful dismissal in the UAE?
Up to three months' wage. Article 47 of Federal Decree-Law No. 33 of 2021 makes dismissal unlawful when it is because the worker made a serious complaint to MOHRE or a valid lawsuit against the employer. The court sets fair compensation up to three months of the last wage, on top of notice allowance and gratuity.
How the court sets the amount
The court considers the type of work, the damage to the worker and the length of service. The three-month ceiling applies in all cases, calculated on the last wage the worker received.
Related protections
Article 30 separately forbids dismissing a worker because of pregnancy or maternity leave. Article 46 forbids ending service for medical unfitness before the worker has used his accrued leave.
How SupaJack Construct helps
Final settlements keep the notice allowance, leave and gratuity as separate lines, so any compensation a court awards is added as its own documented amount rather than mixed into the totals.
Related tools and guides
See the UAE labour law guide for contractors, the final settlement calculator, the gratuity calculator, the annual leave calculator, the unpaid leave deduction calculator, payroll and WPS in SupaJack Construct, time and attendance and the meaning of basic salary.
Worked example
A safety officer on AED 9,000 a month complains to MOHRE about unpaid overtime. The complaint is upheld and he is dismissed a week later. A court finds the dismissal unlawful and can award up to AED 27,000, in addition to his notice allowance and gratuity.
Questions people ask
What is the maximum compensation?
Three months of the last wage.
Does it replace gratuity?
No. Notice allowance and gratuity are still due.
Who decides the amount?
The competent court.