Employment · Legal glossary
Unlawful dismissalIn Arabic: الفصل التعسفي
Definition
Unlawful dismissal is the ending of an employment contract without a valid reason. Saudi law calls it termination for an unlawful reason. The harmed party is entitled to compensation set by the contract or by the law.
The phrase people search for is فصل تعسفي, even where the statute uses a different name.
How it varies across the GCC
In Saudi Arabia, if the contract does not set the compensation, the harmed party is entitled to fifteen days’ wage for each year of service under an open-ended contract, or to the wage for the remaining term of a fixed-term contract (Labour Law, article 77). In the UAE, article 47 of Federal Decree-Law No. 33 of 2021 deals with unlawful termination of the worker’s service.
The rules that apply to a specific matter depend on the state, any free zone involved and the current text of the law, so check the official source before relying on them.
Sources
Official texts for the points on this page. General information, not legal advice. An article number is cited only where it was verified.
- Saudi Labour Law, art. 77https://laws.boe.gov.sa/BoeLaws/Laws/LawDetails/08381293-6388-48e2-8ad2-a9a700f2aa94/1
- UAE Federal Decree-Law No. 33 of 2021, art. 47https://uaelegislation.gov.ae/ar/legislations/1541