What To Do If the Company Is Not Giving Gratuity 

Written ByMuhammad Ibrahim Updated on

According to the UAE Labor Law, the right to end-of-service gratuity payment is granted to an employee who has worked for at least one year. The employer must pay the gratuity within 14 days of employee termination or resignation. In case the company is not giving gratuity or making a delay, you can report it to MOHRE or file a case under the UAE Labor Law. 

Steps for claiming unpaid gratuity in UAE

What To Do

If the company denies the gratuity or causes a delay, you can take legal steps in this case. You can report the case to Ministry of Human Resources & Emiratisation or take legal action under the UAE labor court.  Here is what to do if the company denies your gratuity if you fulfil the gratuity eligibility criteria: 

Request the Company

To get your gratuity, first Contact HR or your manager in writing. Request your gratuity politely and keep a record. Hopefully, the manager will take action and pay your gratuity. 

File a Complaint

If the employer does not pay the gratuity payment within 14 days, you can complain to MOHR.

  • Go to www.mohre.gov.ae, use the MOHRE mobile app, or call their helpline (600-590-000).
  • Select “Submit Labour Complaint”, log in, and fill out the form, attaching relevant documents. State “gratuity not paid”.
  • For in-person assistance, you can also visit a Tawafuq Customer Happiness Centre. MOHRE supports English, Arabic, Urdu, Hindi, and many other languages. 
  • MOHRE will take immediate action on your complaint and will attempt to mediate between you and your employer. 
  • Hopefully, your issue will be resolved and you will get your payment. If the issue persists, you can take legal action. 

File a Case At the UAE Labour Court

If your issue is not resolved by MOHRE , you can take legal action against your employer. Here is how you can do it:

  • Use the MOHRE referral letter and file a case at the UAE Labor Court under the UAE Labor Law. 
  • Submit all the evidence, including the employment contract, salary records, previous steps taken, complaint documents, and correspondence.
  • The company must pay your gratuity if you win the case. 

What If The Company Is Closed or Bankrupt?

According to the law, the employees are still entitled to unpaid gratuity, salaries, and other benefits even in case the company shuts down or is declared bankrupt. 

If there’s not enough money to pay all debts, employees will get what they can from the remaining assets. If the assets are too low and employer is not able to pay gratuity, employees may not get full. However, employees are still prioritised over most creditors.

How To Prevent Future Issues

Here are some tips that will help you avoid such issues in the future:

  • Keep all the records of your employment, such as start date, salary changes, salary slips, and termination/resignation letters
  • Resign properly and give a proper resignation letter according to the company law. 
  •  Resigning without notice may reduce or affect your gratuity.
  • Avoid misconduct during your employment. Misconduct like theft can lead to the denial of gratuity. 
  • Use the Gratuity Calculator Dubai and calculate your accurate gratuity. There are many benefits of using gratuity calculator.
Infographic showing tips to prevent gratuity issues in UAE

FAQs

If the employer is not giving the gratuity, you can make a complaint to MOHER. The MOHER take quick action and resolves your issue immediately. If your gratuity problem is not resolved, you can file a case under the UAE Labour Law at the Labour Court.

Yes, gratuity is mandatory in the UAE. According to the UAE labour law, if an employee has worked for one continuous year without any serious misconduct, the employer must pay the gratuity. 

You can complain about gratuity to MOHER via  www.mohre.gov.ae, the MOHRE mobile app, or call their helpline (600-590-000). You can also visit the Tawafuq Customer Happiness Centre for in-person assistance.

In the UAE, banks can hold or freeze your gratuity payment only if you have an outstanding loan or debt with that bank.

The bankrupt owner has to pay gratuity. Employees remain protected and receive priority for their dues in the company’s bankruptcy.  but it depends on how much money is left after assets are sold.

Conclusion

The UAE labor law states that every employer must give end-of-work benefits to the employee. If you have completed at least one continuous year with your employer, you have the right to get gratuity. 

If your employer is not giving gratuity, you can report to MOHRE. The MOHRE will take immediate action and help you get your payment. If you are not satisfied with Ministry of Human Resources & Emiratisation, you can file a case in the UAE Labor Law. You will get your pending gratuity if you win the case. 

Aslam o Alaikum, I am Muhammad Ibrahim, an expert in gratuity, labour law, and employee benefits with 10 years of experience in the UAE. I hold a degree in Human Resource Management and specialize in gratuity calculations and end-of-service benefits. In my free time, I enjoy reading and traveling.

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