An employee may face delay in payment of their salary, an incomplete calculation of their end-of-service gratuity, or a refusal to pay commissions due or accrued leave balance. Some companies may also attempt to diminish their employees' rights by offering incomplete settlements or requesting a signed discharge before entitlements are paid. This is where consulting a specialist lawyer becomes important, to identify the employee's rights, establish them, and claim them correctly.
Filing a complaint with the Ministry is an important step that needs follow-up
The Ministry of Human Resources and Emiratisation has jurisdiction to decide disputes in which the claim does not exceed AED 50,000, which includes a claim of exactly fifty thousand dirhams, and its decision has the force of an enforceable instrument. The Ministry also has jurisdiction over disputes concerning non-compliance with an earlier amicable settlement it issued, regardless of the value of the claim.
Either party may bring a case before the competent Court of First Instance within 15 working days of being notified of, or served with, the decision. Filing the complaint therefore does not, on its own, remove the need to prepare the claims and supporting documents and to follow up on the decision and the deadline for challenging it. A lawyer helps avoid entitlements being overlooked, inaccurate calculations, or missed legal deadlines.
How is the end-of-service gratuity calculated?
For a full-time foreign employee subject to the standard end-of-service gratuity scheme, the gratuity becomes due after completing one year of continuous service, and is calculated on the basis of the employee's last basic wage: 21 days' wage for each of the first five years of service, and 30 days' wage for each subsequent year. Part-years are calculated in proportion to their duration once the first year has been completed, unpaid leave is not counted within the calculation period, and the gratuity is subject to a maximum cap equal to two years' wage.
So if the monthly basic wage is AED 6,000 and the length of service is three complete years, the gratuity is: 6,000 ÷ 30 × 21 × 3 = AED 12,600, assuming there are no excluded periods.
How is the leave balance allowance calculated?
Annual leave during employment is on full pay, while the cash allowance for any accrued, unused leave balance at the end of employment is calculated on the basic wage, subject to any more favourable terms for the employee. So if the basic wage is AED 6,000 and the accrued balance is 15 days, the allowance is AED 3,000.
Other entitlements that should be reviewed
Entitlements are not limited to the gratuity and leave; they may also include unpaid wages, commissions due, and notice pay where its conditions are met. The basis of calculation differs according to the entitlement: notice pay is calculated on the employee's last wage, not limited to the basic wage. As a general rule, the employer is obliged to pay wages and entitlements within 14 days of the end of the contract.
How we protect your rights
We review the employment contract, payslips, bank transfers, correspondence and leave balance, prepare a detailed calculation of what is owed, help you prepare and follow up the complaint, and represent you before the court where necessary. We also review any settlement or discharge before you sign it, so that your decision is based on a clear understanding of your rights and of the amounts being offered to you.