What to Do If the Company Is Not Giving Gratuity in the UAE 2025

After dedicating five years to a company in Dubai, Mr. Ahmed resigned, anticipating his rightful end-of-service benefits. However, his employer withheld his gratuity without justification. This situation, where the company is not giving gratuity, is unfortunately not uncommon in the UAE. Understanding your rights and the legal avenues available is crucial in such scenarios.

Read this article to know what to do if the company is not giving gratuity, in addition to another important details.

If you find yourself in a similar predicament, our experienced legal team is here to assist you. Click the WhatsApp button at the bottom of your screen.

What is the End-of-Service Gratuity Under the UAE Law?

The gratuity is a financial right legislated by the law, which the employer owes to the employee under specific conditions. The employer is obligated to pay this amount to the employee, or those he is responsible for (such as his children, spouse, or parents), upon the termination of their contract.

The value of this gratuity is determined based on the number of years the employee has served, the reason for the termination of the employment, and the monthly salary received during the period of employment.

Common Reasons Employers Withhold Gratuity

While gratuity is a legal obligation, some employers may attempt to withhold it. Common justifications include:

• Incomplete Service Period: Employees who have not completed one year of service are not eligible for gratuity.
• Termination for Misconduct: If an employee is terminated for reasons such as dishonesty or violation of company policies, the employer may withhold gratuity.
• Resignation Without Notice: Resigning without serving the contractual notice period can lead to forfeiture of gratuity.
• Contractual Clauses: Some contracts may have clauses that affect gratuity eligibility, especially in fixed-term contracts.

It’s essential to review your employment contract and understand the terms related to gratuity.

Steps to Take If Gratuity Is Not Paid

If you’re facing a situation where gratuity is not paid by the employer, and if the company is not giving gratuity, consider the following steps:

1. Review Your Contract: Ensure you meet all the criteria for gratuity eligibility.
2. Communicate with Your Employer: Initiate a formal discussion or send a written request for the pending gratuity.
3. File a Complaint with MOHRE: If the employer remains unresponsive, file a complaint with the Ministry of Human Resources and Emiratisation (MOHRE). They offer mediation services to resolve such disputes.
4. Seek Legal Assistance: If mediation fails, consult a legal expert to explore further legal action.

Calculating Your End-of-Service Gratuity in the UAE

In some texts and references, the end of service benefits is mentioned alongside other terms like retirement gratuity and savings gratuity. These expressions intersect in the idea that they represent a certain financial compensation for a specific reason, but our focus here is on the end of service benefits

For employees in the private sector in the UAE, the value of the end of service benefits is also based on the duration of employment, their wages, and the nature of their work. Employees receive 21 days’ wages for each year of service, and after completing five years, they receive a full month’s salary for each subsequent year.

UAE law specifies that an employee is entitled to an end of service benefits upon the termination of their service. This entitlement also applies to full-time expatriate workers who have completed one year or more in service.

Additionally, the calculation of the gratuity for part-time workers, job sharers, or any other type of employment other than full-time is as follows:

• The number of hours specified in the contract divided by the number of hours in a full-time contract multiplied by one hundred equals the percentage multiplied by the value of a full-time worker’s gratuity.
• In cases of temporary work lasting less than a year, the end-of-service gratuity does not apply.
• Other legal articles have discussed the end of service gratuity in more detail, such as in the case of an employee’s death, death due to work, and entitlement in cases of unfair dismissal. Therefore, if you face any such situation and need legal advice, do not hesitate to contact us through the WhatsApp button at the bottom of the screen.

There might be a father claiming the rights for his son who died due to work, among other scenarios. Thus, with our extensive experience in UAE law, we are fully equipped to assist you, regardless of the situation.

Eligibility for End-of-Service Gratuity in the UAE

While the UAE Labour Law mentainsend-of-service gratuity, specific criteria determine employee eligibility. Let’s delve into who qualifies for this benefit and what are the exclusions.

• Employees whose service at the workplace is not less than one year of continuous work.
• Those whose employment has ended due to the expiration of the contract or who have resigned in a manner compliant with applicable regulations.
• Employees who have served their workplace for a total period of not less than one year in temporary employment systems.

FAQs

You might need to read: Winning Your Wrongful Termination Case in the UAE

If the company is not giving gratuity, it’s important to know that UAE labour law is firmly on your side. Employers are legally obligated to pay end-of-service benefits to eligible employees, and failure to do so can be challenged through official legal channels. Whether your gratuity has been delayed, denied without justification, or ignored completely, you have the right to take action and claim what is lawfully yours.

To ensure your rights are protected and to take the correct steps toward recovering your entitlements, we encourage you to seek advice from a legal expert. You may contact our office by clicking the WhatsApp button at the bottom of the screen to begin a confidential consultation with one of our lawyers in dubai.