Dismissal from work is one of the toughest challenges any employee may face in their career. When this decision comes suddenly and without justification, it not only affects financial stability but also undermines dignity and instills a sense of injustice. This is the essence of arbitrary dismissal, which occurs when an employer terminates an employee’s contract without a legitimate or reasonable cause based on the law or agreed contractual terms.
In this comprehensive article presented by jobsdz.com, we will dive deep into this critical issue, break down its legal complexities, and provide you with a clear roadmap to understand cases of arbitrary dismissal, your full rights, and the practical steps you must take to protect yourself and reclaim your entitlement.
What Exactly Is Arbitrary Dismissal?
The Legal Concept and Its Difference from Lawful Termination
Before diving into the details, we must clearly define the term. Arbitrary dismissal is the termination of employment by the employer for unlawful or insufficient reasons, unrelated to the employee’s competence, professional conduct, or business requirements. In other words, it is dismissal that does not rest on a “serious and genuine cause.”
For a deeper understanding, let’s compare lawful and arbitrary termination:
Lawful Termination: Occurs for legal and acceptable reasons such as:
- Disciplinary causes: When an employee commits serious misconduct (to be detailed later).
- Economic causes: Company restructuring or genuine financial difficulties leading to job elimination.
- Professional incompetence: Failure to meet performance goals despite adequate opportunity and training.
- Expiry of fixed-term contract.
- Reaching retirement age.
Arbitrary Dismissal: Occurs when the declared reason is false or insufficient to justify dismissal, such as:
- Personal reasons: A personal dispute with the manager unrelated to work.
- Discriminatory reasons: Dismissal based on gender, race, religion, political opinion, or marital status (e.g., pregnancy).
- Retaliation: Termination because the employee claimed legitimate rights (like overtime pay or leave).
- Weak excuse: Fabricated or exaggerated reasons over a minor error not warranting dismissal.
According to the International Labour Organization (ILO), protection against unjust dismissal is a fundamental right ensuring job security and fostering sound labor relations. For more on international standards, see the Termination of Employment Convention, 1982 (No. 158).
The Most Common Cases of Arbitrary Dismissal You Should Recognize
Arbitrary dismissal wears many masks. Recognizing these cases is your first step in distinguishing them and defending your rights. Here are the most common types with practical examples:
1. Dismissal for Discriminatory Reasons
One of the most unjust and unlawful forms, where employees are targeted for their identity, not their performance.
- Gender discrimination: Terminating a woman because of pregnancy or after maternity leave, or denying her a deserved promotion in favor of a male colleague, then dismissing her.
- Religious discrimination: Ending employment due to religious practices that do not interfere with work.
- Racial or ethnic discrimination.
- Political or union-related discrimination.
Real Example: An engineer was dismissed after announcing her pregnancy under the pretext of “department restructuring,” yet shortly after, another engineer was hired in her role. This is a strong indicator of discriminatory arbitrary dismissal.
2. Retaliatory Dismissal
Occurs when the employer seeks to “punish” the employee for exercising a legitimate legal right.
- Claiming entitlements: Being fired for demanding overdue salary, overtime pay, or annual leave.
- Whistleblowing: Termination for reporting illegal or unethical practices (corruption, fraud, safety violations).
- Filing a complaint: Dismissal after approaching the labor office or a regulatory body.
- Refusal to commit an unlawful act: Dismissal after refusing a manager’s illegal request (e.g., forging invoices).
Real Example: An accounting staff discovers financial fraud and reports it to senior management. A week later, he is dismissed for “poor performance” despite previously excellent evaluations.
3. Dismissal Due to Union Activity
Most labor laws guarantee union rights. Thus, dismissing an employee for establishing, joining, or participating in union activities is an obvious case of arbitrary dismissal.
4. Constructive Dismissal (“Pushed to Resign”)
A manipulative form where the employer does not dismiss directly but creates an unbearable work environment to force resignation. Courts often treat such resignations as arbitrary dismissals.
Examples include:
- Unjustified salary cuts or removal of key benefits.
- Significant demotion to a lower role without employee consent.
- Transfer to an unreasonably distant workplace.
- Creating a hostile environment through bullying, constant insults, isolation, or meaningless tasks.
Real Example: A senior employee is stripped of responsibilities, assigned trivial archiving tasks, excluded from meetings, and deprived of key work information. Feeling humiliated, he resigns under pressure.
5. Dismissal Without Legal Procedures
Even if there is a legitimate cause, failure to follow legal procedures may turn lawful dismissal into arbitrary dismissal. Such procedures usually include:
- Written notice (notice period): Giving the employee time before dismissal takes effect.
- Right to defense: Allowing the employee to respond to accusations before dismissal (hearing session).
- Gradual disciplinary measures: For minor offenses, employers must begin with verbal warnings, then written warnings, then salary deductions, before dismissal.
Important: Visit our blog at jobsdz.com/ar/blog for detailed articles on labor law and legal procedures in the workplace.
I Was Dismissed! What Should I Do? (6-Step Action Plan)
Shock, anger, and anxiety are normal feelings. But you must remain calm and act wisely. Here’s a clear step-by-step plan:
Step 1: Do Not Sign Any Documents Immediately!
Employers may pressure you into signing “final clearance” or “resignation letters.” Do not sign anything before fully understanding it and consulting a lawyer. Signing may mean waiving your rights, including the right to sue for arbitrary dismissal. Request copies of all documents to review.
Step 2: Request the Dismissal Reason in Writing
You have the full right to know why you were terminated. Ask HR or your direct manager for an official dismissal letter explaining the reasons in detail. This document is crucial for any legal action. If refused, document the refusal by sending an email requesting the reasons, thus proving your attempt.
Step 3: Collect Evidence and Documents (Critical Stage)
Legal cases are built on evidence. Start gathering:
- Employment contract and amendments.
- Performance records: Annual evaluations, letters of appreciation, positive emails proving competence.
- Attendance logs showing punctuality.
- Written communications (emails, texts) relevant to dismissal or prior harassment.
- Witness testimony from colleagues who witnessed incidents.
- Company policies and internal regulations.
Tip from jobsdz.com: Create a well-organized file (paper + digital) with all these materials to support your lawyer.
Step 4: Document Events Chronologically
Write down everything leading to your dismissal: dates, times, places, people present, exact words exchanged. Memory fades, but written notes preserve accuracy.
Step 5: Consult a Labor Law Specialist
Do not fight this battle alone. Labor laws are complex and vary by country. A specialized lawyer will:
- Assess the strength of your case based on evidence.
- Explain your rights and possible compensation.
- Clarify procedures and deadlines for filing a case.
- Negotiate with your employer on your behalf.
- Represent you before the labor court.
Step 6: File a Complaint with the Official Authority
In parallel, you can submit a formal complaint to your country’s labor authority (e.g., Ministry of Labor, Labor Office). They may attempt mediation before escalating to court.
What Are My Legal and Financial Rights If Arbitrary Dismissal Is Proven?
If the court rules your dismissal was arbitrary, you may be entitled to compensation designed to repair the harm caused. This differs across countries but usually includes:
- Reinstatement: Some legal systems order reinstatement to the original role, though often impractical.
- Financial compensation (most common): Based on:
- Salary: Usually calculated on the last full wage.
- Service length: Longer service means higher compensation.
- Type of damage: Material (income loss) and moral (reputation, psychological suffering).
- Notice period compensation: If not granted, you are entitled to its pay.
- End-of-service benefits: Required in most systems (except gross misconduct cases).
- Unused leave pay.
Numeric Example: Suppose an employee earning 5,000 units per month with 10 years of service is dismissed arbitrarily. The law may grant:
- Service compensation: 10 × 5,000 = 50,000
- Moral damages: 2 × 5,000 = 10,000
- Notice pay: 2 × 5,000 = 10,000
Total potential compensation = 70,000 units (before other entitlements).
⚠️ Note: These figures are illustrative only. Exact amounts depend on your country’s labor law and court decision. For accurate info, refer to local legislation (e.g., the Algerian Ministry of Justice legal portal).
Prevention Is Better Than Cure: How to Protect Yourself
While you cannot always prevent arbitrary dismissal, you can strengthen your position:
- Keep copies of your employment contract and related documents outside the office.
- Document your achievements with performance reviews and letters of appreciation.
- Use written communication to confirm verbal agreements or instructions.
- Stay professional, avoid personal conflicts.
- Know your rights by studying your country’s labor law and company policies.
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Conclusion
Arbitrary dismissal is not just job loss—it is a violation of a fundamental worker’s right. A deep understanding of its cases, prompt evidence collection, and legal expertise can transform your situation from victimhood into empowerment. Never hesitate to defend your rights—the law exists to protect you.