End of Service Benefits Lawyer Dubai: Claim Your Gratuity Rights

Employees in Dubai who are leaving their jobs are entitled to an end-of-service gratuity under the UAE Labour Law. This article explains the rights that accrue on termination, the steps required to claim the benefit, and the typical documents and timelines involved.

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WHAT IS THE LEGAL BASIS FOR END-OF-SERVICE GRATUITY IN DUBAI?

The end-of-service gratuity is prescribed by Federal Decree-Law No. 33 of 2021 regulating Labour Relations in the UAE, which applies to all private-sector employees working in Dubai unless they are employed in a free-zone that has its own labour regulations. The law sets out the formula for calculating the gratuity, the minimum service period required to qualify, and the circumstances in which the payment may be reduced or forfeited.

HOW IS THE GRATUITY AMOUNT CALCULATED?

The gratuity is calculated on the basis of the employee's last basic salary. For each of the first five years of service, the employee receives 21 days' basic salary for each year. For each year beyond five years, the entitlement increases to 30 days' basic salary per year. The total gratuity is the sum of these amounts, capped at the equivalent of two years' total salary. The calculation uses only the basic salary; allowances, bonuses, or overtime are not included unless the employment contract expressly states otherwise.

WHAT MINIMUM PERIOD OF SERVICE IS REQUIRED TO QUALIFY?

An employee must complete at least one year of continuous service to be entitled to any gratuity. Service periods of less than one year do not accrue a gratuity payment, although any accrued leave or other entitlements must still be settled. The law treats probationary periods as part of continuous service if the employee is confirmed after the probation ends.

WHAT DOCUMENTS ARE NEEDED TO SUBMIT A CLAIM?

To claim the gratuity, the employee should prepare:

1. A copy of the employment contract or the latest version showing the basic salary.
2. The latest salary slip or a certificate from the employer confirming the last basic salary.
3. A service certificate issued by the employer stating the start and end dates of employment and the reason for termination.
4. Any written correspondence relating to the resignation or termination, such as a resignation letter or termination notice.
5. A copy of the employee's Emirates ID and passport page showing the residency visa.

These documents enable the employer or the labour authorities to verify the period of service and the salary basis used for the calculation.

WHAT IS THE STEP-BY-STEP PROCEDURE TO REQUEST THE GRATUITY?

1. Notify the employer - Submit a written request for the end-of-service gratuity, preferably via email or registered mail, citing the relevant provision of the UAE Labour Law.
2. Employer's response - The employer must respond within five working days, either by arranging payment or by providing a written explanation if they dispute the entitlement.
3. Internal resolution - If the employer agrees, payment should be made within the next payroll cycle or as agreed, typically within 14 days of the request.
4. Escalation to MOHRE - Should the employer refuse or delay payment without valid cause, the employee may file a complaint with the Ministry of Human Resources and Emiratisation (MOHRE) through its online portal or by visiting a Tas'heel centre.
5. MOHRE mediation - MOHRE will schedule a mediation session within ten working days of receiving the complaint. Both parties must attend; the mediator will attempt to reach a settlement.
6. Referral to labour court - If mediation fails, MOHRE will issue a referral letter allowing the employee to lodge a claim before the Dubai Labour Court. The claim must be filed within three months of the referral date.
7. Court proceedings - The court will examine the evidence, apply the gratuity formula, and issue a judgment. The losing party may be ordered to pay the gratuity plus any applicable court fees, which are modest and based on the claim value.

WHAT ARE THE TYPICAL TIMELINES FOR EACH STAGE?

• Employer response: ≤ 5 working days after receipt of the request.
• Payment after agreement: usually within the next payroll cycle, not exceeding 14 days.
• MOHRE complaint filing: can be done immediately after the employer's refusal.
• Mediation scheduling: within 10 working days of complaint receipt.
• Court claim filing: must be submitted within 3 months of receiving the MOHRE referral letter.
• Court judgment: varies, but labour courts aim to conclude cases within 60-90 days from the first hearing, depending on case complexity.

ARE THERE ANY COSTS OR FEES INVOLVED IN CLAIMING THE GRATUITY?

Filing a complaint with MOHRE is free of charge. If the case proceeds to the Dubai Labour Court, the claimant must pay a court fee that is calculated as a percentage of the claimed amount, currently set at 6 % of the claim value, with a minimum and maximum threshold prescribed by the court's fee schedule. Legal representation fees are not set by law and vary according to the lawyer's experience and the case's difficulty.

CAN THE GRATUITY BE REDUCED OR FORFEITED?

The law permits reduction or forfeiture of the gratuity only in specific situations, such as:

• Termination due to the employee's fault, proven by a disciplinary investigation that results in a dismissal for cause under Article 120 of the Labour Law.
• Voluntary resignation before completing one year of service, which results in no gratuity entitlement.
• Cases where the employee has caused material loss to the employer through intentional misconduct, and the employer can prove the loss in court.

In all other circumstances, including resignation after one year of service, lay-off, or expiry of a fixed-term contract, the full gratuity as calculated by the formula must be paid.

WHAT HAPPENS IF THE EMPLOYER BECOMES INSOLVENT?

If the employer is insolvent or undergoes liquidation, the employee's gratuity claim ranks as a preferential debt under the UAE Bankruptcy Law. The employee should file a proof of claim with the liquidator or the court overseeing the insolvency proceedings. The liquidator will settle preferential debts, including end-of-service gratuities, before distributing remaining assets to unsecured creditors.

FREQUENTLY ASKED QUESTIONS

What is the governing law for end-of-service gratuity in Dubai?
Federal Decree-Law No. 33 of 2021 on Labour Relations sets out the gratuity calculation, eligibility, and payment rules for private-sector employees in Dubai, unless the employee works in a free-zone with its own labour regulations.

How long does an employer have to pay the gratuity after a valid request?
Although the law does not specify a exact number of days, standard practice and MOHRE guidance indicate that payment should be made within the next payroll cycle, typically not exceeding 14 days after the employer acknowledges the entitlement.

Can an employee claim gratuity if they resign during the probation period?
No. Service of less than one year does not accrue a gratuity entitlement, so resignation during probation results in no gratuity payment, although any accrued leave or other dues must still be settled.

Is the gratuity calculated on gross salary or basic salary only?
The gratuity is based on the employee's last basic salary only, as stipulated in Article 51(2) of Federal Decree-Law No. 33 of 2021. Allowances, bonuses, and overtime are excluded unless the contract expressly provides otherwise.

What should an employee do if the employer refuses to pay without justification?
The employee should first lodge a formal complaint with MOHRE via its online portal or a Tas'heel centre. MOHRE will attempt mediation; if unsuccessful, it will issue a referral to the Dubai Labour Court, where the employee can file a claim within three months of receiving the referral.

Are there any circumstances where the gratuity can be reduced?
Yes. The gratuity may be reduced or forfeited if the termination is for cause under Article 120 of the Labour Law, such as proven misconduct, or if the employee resigns before completing one year of service. In all other cases, the full amount calculated by the statutory formula is due.

If your matter involves end of service benefits lawyer in the United Arab Emirates, you are welcome to request a consultation with Nour Attorneys. Our team can assess your position under the law currently in force and outline the options available to you. Request a consultation

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