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Arbitrary or unlawful dismissal is termination of a UAE employee for an illegitimate reason — classically, firing a worker for filing a serious complaint or claim against the employer that proves well-founded. The current Labour Law narrowed the old, broader concept: most terminations are now lawful if a legitimate reason exists and notice is served, but unlawful termination still triggers court-awarded compensation of up to three months' wages on top of notice pay and end-of-service gratuity. The burden fight in these cases is practical: the employee must show the dismissal was retaliation or otherwise illegitimate, while the employer points to documented performance or restructuring grounds. You meet this concept in almost every contested MOHRE complaint that escalates to the labour courts, and it is the main lever for negotiating exit settlements above the bare statutory minimum.