Most employment disputes in the UAE arise when the relationship ends: unpaid salary, leave balances, notice pay, end-of-service gratuity and, sometimes, a claim that the termination itself was unlawful. Private-sector employment is governed by Federal Decree-Law No. 33 of 2021, amended in 2024 by Federal Decree-Law No. 9 of 2024. Those amendments changed both the time limit for claims and the route they follow.
Start with MOHRE
A labour claim begins with a complaint to the Ministry of Human Resources and Emiratisation (MOHRE), which first tries to settle the dispute. For disputes of up to AED 50,000, MOHRE can issue a binding decision, which either party may challenge before the court within a short period. Larger disputes that are not settled are referred to the competent court.
The two-year time limit
Following the 2024 amendments, a labour claim must generally be brought within two years of the end of employment. A claim filed late may not be heard at all, so employees should not wait to see whether a former employer pays voluntarily.
What is usually owed
Entitlements typically include unpaid wages up to the last working day, accrued and unused annual leave, pay in lieu of any notice not worked, and the end-of-service gratuity, which is calculated on the last basic wage and the length of continuous service. The employment contract, payslips and bank statements are the starting point for any calculation.
Unlawful termination
The Labour Relations Law treats termination as unlawful in defined cases, notably where an employee is dismissed because they filed a well-founded complaint with the Ministry or a claim against the employer. The court then sets fair compensation, taking into account the type of work, the harm and the length of service, but it cannot exceed three months' wages at the last wage received. This is in addition to notice pay and the end-of-service gratuity, not a substitute for them.
For employers
Clear contracts, accurate wage records, documented warnings and a written termination decision with the correct notice are the best protection against later claims. Paying final entitlements promptly also limits exposure.
Frequently asked questions
Can I go straight to court?
In general, no. A complaint must first be registered with MOHRE, which attempts settlement or decides smaller claims.
Does this apply to free zones?
It applies in most free zones, but the DIFC and ADGM have their own employment laws and courts, and domestic workers are covered by a separate law.
Legal sources
Federal Decree-Law No. 33 of 2021 regulating Labour Relations
Federal Decree-Law No. 9 of 2024 amending certain provisions of Federal Decree-Law No. 33 of 2021
Cabinet Resolution No. 1 of 2022 (Executive Regulations)