End-of-service benefits are a vital financial entitlement for employees working in the United Arab Emirates. These benefits, which serve as a form of gratuity for the employee’s service, are regulated under the UAE Labour Law and are applicable to employees who complete at least one year of continuous service with an employer. However, not all employees receive these benefits smoothly upon resignation or termination. Disputes over unpaid end-of-service gratuities are unfortunately common, and understanding the legal process to claim them is essential for employees seeking justice.
This article outlines the complete process for claiming unpaid end-of-service benefits in the UAE, including legal rights, steps for resolution, and when it becomes necessary to escalate the matter to the authorities. Written from a professional and employee-centric standpoint, this guide will equip individuals with the information they need to confidently pursue their rightful dues.
Understanding End-of-Service Benefits in the UAE
Under the UAE Labour Law, end-of-service benefits are mandatory for most full-time employees working under unlimited or limited contracts. These benefits are generally calculated based on the employee’s basic salary and the duration of their service. For example, employees are typically entitled to 21 days’ worth of basic salary for each of the first five years of service, and 30 days’ worth for every additional year beyond that. However, there are legal exceptions and deductions based on how the contract ended, including cases of termination for gross misconduct or voluntary resignation under certain conditions.
For this reason, understanding the specific terms of your employment contract and the legal framework is essential before initiating a claim.
Initial Steps: Internal Resolution
When an employee suspects that their end-of-service benefits have been unjustly withheld, the first step should always be an internal resolution attempt. In many cases, delays may be caused by administrative oversights or unclear communication rather than deliberate avoidance.
The employee should begin by sending a formal written request to the employer or the human resources department. This request should clearly state the outstanding amount, refer to the applicable contract terms or legal provisions, and ask for a resolution within a reasonable timeframe. Maintaining written records of all communication is crucial in case the matter escalates.
If the employer responds positively, the issue may be resolved without any further legal steps. However, if the employer refuses to pay or fails to respond, it becomes necessary to file an official labour complaint.
Filing a Complaint with the Ministry of Human Resources and Emiratisation (MOHRE)
If an internal resolution is unsuccessful, the employee must lodge a formal complaint with the Ministry of Human Resources and Emiratisation (MOHRE). This step is required before any labour case can be heard in court. The complaint can be submitted either online through MOHRE’s official portal, via the customer service hotline, or by visiting a Tasheel service centre.
The employee will need to provide documentation that supports their claim. This typically includes the original employment contract, a copy of the resignation or termination letter, proof of final working day, calculation of unpaid gratuity, and any relevant communication with the employer.
Once the complaint is submitted, MOHRE will contact both parties and schedule a mediation session. The goal of this session is to reach an amicable resolution through dialogue. If an agreement is reached, MOHRE will document the outcome and close the case. If not, the matter is referred to the competent labour court.
Labour Court Proceedings
If the dispute cannot be resolved through MOHRE mediation, the employee will be issued a referral letter allowing them to file a case with the Labour Court in the jurisdiction where they worked. Labour court proceedings in the UAE are structured to be accessible for employees, and individuals can represent themselves without the need for legal representation. However, those unfamiliar with the court system or who face complex legal issues may choose to consult labour lawyers in Dubai for professional assistance.
To initiate the case, the employee must file a formal claim along with the referral letter, copies of all supporting documents, and any evidence that supports their position. The court will review the claim and schedule hearings, during which both parties may present their arguments, submit documents, and call witnesses if necessary.
One key aspect of labour court proceedings is the timeline. Although the legal process aims to be efficient, cases can sometimes take several weeks or months depending on the complexity and the backlog of the courts. Throughout the process, it is important for the claimant to remain diligent, attend all hearings, and comply with court instructions.
Evidence and Documentation
The outcome of a case involving unpaid end-of-service benefits relies heavily on evidence. The most critical documents include the original employment contract, salary slips, bank statements showing salary transfers, termination or resignation letters, and any formal correspondence regarding the dispute.
In addition, if the employer promised specific benefits or end-of-service payments beyond the legal minimum, written proof of those commitments will be required. Courts in the UAE typically favour written documentation over verbal agreements, so employees should always ensure they keep proper records during their employment.
Court Judgment and Execution
Once the court reaches a decision, a judgment is issued. If the court finds in favour of the employee, the judgment will specify the amount the employer must pay, which may include the unpaid end-of-service benefits, outstanding salaries, leave encashment, and any court fees or fines.
If the employer fails to comply with the judgment within the specified time, the employee can initiate an execution request. This involves asking the court to take enforcement action, which could include freezing the employer’s bank accounts, imposing travel bans, or seizing assets. The UAE judicial system has mechanisms in place to ensure that judgments are enforced and that employees can receive the compensation they are awarded.
Time Limits and Legal Deadlines
Employees should be aware of the time limitations for filing labour claims in the UAE. Generally, claims for unpaid wages and end-of-service benefits must be filed within one year from the date of contract termination. Failing to file within this period can result in the claim being dismissed, regardless of its merits.
Therefore, it is crucial to act promptly and seek guidance early if there are signs of a dispute. If unsure about how to proceed, employees may consult with experienced labour lawyers in Dubai who can assess the situation, advise on the legal options, and assist with filing the claim if needed.
Preventing Future Disputes
While understanding the process for claiming unpaid benefits is important, prevention is always better than resolution. Employees are encouraged to ensure that their employment contracts are clear, detailed, and include provisions for end-of-service benefits. Regularly reviewing salary records, maintaining copies of communication, and requesting written confirmations can also reduce the risk of disputes later.
Additionally, knowing your rights under the UAE Labour Law can empower you to make informed decisions throughout your employment, whether you’re negotiating a new contract or preparing to resign.
Conclusion
Claiming unpaid end-of-service benefits in the UAE involves a well-defined legal process that begins with internal communication and may progress to formal complaints and court action. Employees have the right to receive what they are legally entitled to, and the UAE government has established accessible procedures to ensure these rights are protected.
Understanding each step—from initiating a complaint to enforcing a court judgment—is essential for any employee facing a dispute over gratuity payments. While many employees manage to resolve their claims independently, those facing complex or high-stakes cases may benefit from legal advice or representation.
The key to a successful claim lies in preparation, documentation, and a clear understanding of the law. Employees who stay informed and act promptly are far more likely to achieve a favorable outcome and secure the compensation they rightfully deserve.
