Dubai Worker Wins Dh336,000 in End-of-Service Pay After 27-Year Tenure
An employee in Dubai has been awarded Dh336,000 in end-of-service compensation after nearly three decades of service and a legal battle with their former employer.
The worker began employment in July 1996 under an open-ended contract that lasted until May 2023. With almost 27 years of service and a final monthly salary of Dh14,000, the employee sought assistance after the employer failed to settle end-of-service dues amicably.
Legal Ruling Based on UAE Labour Law
The case was heard after the employee filed a complaint with the Ministry of Human Resources and Emiratisation (MOHRE). A court-appointed expert confirmed the employment duration and final salary, which played a crucial role in the ruling. The court calculated the end-of-service gratuity in line with Article 51 of Federal Decree-Law No. 33 of 2021.
This law provides 21 days’ salary for each of the first five years and 30 days’ salary for each year thereafter, with a maximum cap of two years’ wages. The employee’s total compensation was thus determined as Dh336,000.
Waiver Claims Dismissed
The court also ruled that any waiver of end-of-service benefits made before the employment ends is invalid. This meant that any settlement the employer claimed to have previously agreed with the employee was dismissed as legally unenforceable.
“This decision reaffirms a fundamental principle of UAE labour law, employees cannot be compelled to waive their end-of-service benefits before the employment relationship ends,” said legal advisor Vishal Tinani, who represented the employee. “It protects employee rights and ensures they receive their full legal entitlements.”
Return Flight Claim and Interest Rejected
The court, however, did not approve all of the employee’s claims. A demand for Dh4,000 to cover a return flight ticket was denied. The court ruled that the employer was not obligated to pay for repatriation under the terms of the termination.
Additionally, the court rejected a request for legal interest on the judgment amount, stating that such interest typically applies to commercial cases, not employment disputes.
Employer’s Counterclaim Partially Accepted
The employer submitted a counterclaim, which led to a partial ruling in their favor. The employee was ordered to repay Dh100,000 as a confirmed personal loan. Other parts of the counterclaim, including allegations of forgery and breach of trust, were dismissed due to a lack of evidence. The court also refused to pause the case pending a separate criminal investigation, which was still in the preliminary stages.
Impact on UAE Labour Rights
The ruling, announced in November 2024, has been described by Tinani as a milestone case. It underscores the UAE’s commitment to upholding employee rights and ensuring fair treatment under its labour regulations.
This decision is expected to serve as a reference point for similar disputes, especially those involving long-serving employees and complex contract histories.
