The contract
The wage split between basic and allowances drives almost every calculation. It is the first document to read, and often the source of the dispute.
Employment & labour
What you are owed,
and how to get it.
Most UAE employment disputes are not really arguments about the law. They are arguments about arithmetic, documents and deadlines — and they are usually winnable on paper.
What this covers
For the employee
and the employer.
Advice across the life of the relationship: contracts and structure at the start, investigations and restructuring in the middle, and settlement at the end.
Federal Decree-Law No. 33 of 2021 reshaped a great deal of UAE employment practice — most visibly by removing the old reductions that cut an employee's gratuity for resigning. Many final settlements are still being calculated as though the previous law applied, and a surprising number simply understate what is due.
The most common disputes are also the most arithmetic: an end-of-service figure calculated on the wrong wage, untaken annual leave that was never encashed, notice that was neither served nor paid, or overtime and commission quietly dropped from a final payment. These are provable claims, and they are usually resolved faster than people expect.
On the employer side the work is preventative more often than adversarial: contracts and handbooks that will survive scrutiny, restrictive covenants drafted so that they are actually enforceable, disciplinary and investigation processes that produce a defensible record, and terminations handled so they do not become claims.
End of service
Unpaid wages
Termination
Non-compete
MoHRE
Workplace investigations
When people call
Where settlements
go wrong.
The recurring problems in UAE final settlements and workplace disputes.
01
An end-of-service figure that looks low
Gratuity is calculated on basic salary, and the accrual rate rises after five years. Small errors in the wage used or the service period compound into large ones.
02
Leave that was never paid out
Untaken annual leave is payable on termination, including leave accrued in the final part-year. It is one of the most commonly omitted lines.
03
Notice neither served nor paid
Where notice is not worked, the party at fault compensates the other — calculated on the last total wage, not basic alone.
04
Termination that felt retaliatory
Where a dismissal follows a legitimate complaint or claim, a labour court may award additional compensation. It is a claim to be argued, not an automatic entitlement.
05
Non-compete and restrictive covenants
Enforceability turns on scope, duration and legitimate interest. Both defending and drafting these is a drafting problem first.
06
Workplace investigations
Internal investigations into misconduct or regulatory breach need a process that will hold up later — for the employer and for the person investigated.
What actually matters
Get the arithmetic
right first.
Before anyone argues about fairness, establish precisely what the numbers and documents say.
The service record
Start date, last working day, unpaid leave and any break in service change the figure. Approximations create disputes; dated records resolve them.
The final settlement
Compare what was paid against each entitlement separately — gratuity, leave, notice, arrears — rather than accepting a single lump sum.
The deadline
Employment claims are time-sensitive, and entitlements are payable within days of the contract ending. Delay narrows the options.
Common questions
Questions worth
asking.
General information only. Free zones such as the DIFC and ADGM operate their own employment regimes.
How is end-of-service gratuity calculated?
Under Federal Decree-Law No. 33 of 2021, an employee completing at least one year of continuous service receives 21 days of basic salary for each of the first five years and 30 days for each year after that, capped at two years' wage. You can work out your own figure with the free calculator on this site.
Do I lose gratuity if I resign?
No. The reductions that used to cut gratuity for resigning employees were removed by the 2021 law. Once you complete one year of continuous service the entitlement is the same whether you resign or are terminated.
I was dismissed for misconduct — do I lose everything?
Not everything. Dismissal for gross misconduct can remove the gratuity, but untaken annual leave and any unpaid wages, overtime or commission remain payable.
Is my untaken annual leave paid out?
Yes, including leave accrued during your final part-year. It is paid at your basic daily wage and is one of the entitlements most often left out of a settlement.
Does this apply if I work in the DIFC or ADGM?
Not directly. The DIFC and ADGM have their own employment laws and, in the DIFC, a workplace savings scheme that replaces the traditional gratuity. The analysis is different and needs to be done under the right regime.
Related areas
Matters rarely stay
in one category.
This issue commonly overlaps with the areas below — which is why one counsel across all of them matters.
Practice
Debt recovery & enforcement
Winning an award is one thing; collecting on it is another.
Learn more → PracticeCivil & real estate
Contractual claims and damages outside the employment relationship.
Learn more → PracticeNegotiation & settlement
Most employment disputes are resolved commercially, not at trial.
Learn more →Calculate your full end-of-service entitlement — gratuity, leave, notice and arrears →
Think your final settlement was short?
Underpaid end-of-service benefits are among the most common claims in the UAE — and among the most provable. Bring the contract and the payslip.