UAE Ministry outlines rules for private sector employers to penalize workers
Clear guidelines on fair termination practices and employee rights in the UAE private sector

Abu Dhabi: MoHRE Details Rules on Employee Dismissals and Penalties
The UAE Ministry of Human Resources and Emiratisation (MoHRE) has clarified the regulations governing employee termination and disciplinary measures in the private sector. It stated that terminating an employee’s service is unlawful or arbitrary if it results from the employee filing a legitimate complaint with the ministry or pursuing a valid legal claim against the employer.
In such cases, the employer must compensate the employee fairly, with the compensation amount determined by a court based on the specifics of the case.
Factors for Imposing Disciplinary Penalties
Employers must consider several key factors when imposing disciplinary actions against employees. These include:
- Confidentiality Issues: Whether the employee disclosed sensitive work-related information.
- Health and Safety Impact: The effect of the violation on the safety and well-being of the employee or others.
- Financial Consequences: The financial damage caused by the employee’s actions.
- Reputational Impact: The extent to which the violation harmed the organization’s reputation.
- Abuse of Authority: Instances where the employee misused their position or authority.
- Frequency of Violations: How often the employee has breached company rules.
- Legal or Ethical Concerns: Whether the misconduct involved criminal or moral wrongdoing.
Employee Recourse for Unfair Dismissals
If an employee believes they were unfairly dismissed, they can file a grievance with MoHRE. The ministry will review the dismissal and mediate between the employee and employer to resolve the issue amicably.
If mediation fails, the case is referred to the courts. If the court rules the dismissal as unfair, the employer must compensate the employee.
Compensation Details
Compensation is calculated based on:
- The nature of the employee’s job.
- The harm caused to the employee.
- The length of the employee’s service.
The total compensation cannot exceed three months’ worth of the employee’s last salary.
Employees are also entitled to:
Gratuity payments: Final benefits for service they are entitled to.
Notice period compensation: Payment for a notice period not paid.
Arrears: Unpaid wages or entitlements.
This framework ensures private sector employers maintain fair practices while giving employees clear channels to seek redress in cases of injustice.



