Labour QuestionsQuestion & AnswersWhat Are Employee Rights After Termination in the UAE?

What Are Employee Rights After Termination in the UAE?

When an employment relationship ends in the UAE, the employee remains entitled to several financial and legal rights. These rights are protected under Federal Decree-Law No. 33 of 2021 Regarding the Regulation of Employment Relationship, regardless of whether the termination was initiated by the employer or the employee.

What Are the Main Employee Rights After Termination?

After termination, an employee in the UAE is typically entitled to the following:

• End-of-service gratuity (if eligible)
• Unpaid salary and wages
• Compensation for unused annual leave
• Notice period compensation (if applicable)
• Any contractual bonuses or commissions
• Repatriation ticket (in certain cases)

End-of-Service Gratuity

Employees who complete at least one year of continuous service are entitled to end-of-service gratuity. The calculation is based on the basic salary and the length of service.

The gratuity is calculated as:

• 21 days’ basic salary for each year of service for the first 5 years
• 30 days’ basic salary for each additional year

The total gratuity should not exceed two years’ salary.

Unpaid Salary and Final Settlement

The employer must pay all outstanding salary amounts, including any pending wages, overtime, or allowances. This is typically referred to as the final settlement.

Unused Annual Leave

Employees are entitled to compensation for any unused annual leave. This is calculated based on the employee’s basic salary at the time of termination.

Notice Period Compensation

If either party fails to serve the notice period, the other party is entitled to compensation equivalent to the salary for that period.

Commissions and Bonuses

If the employment contract includes commissions or performance-based bonuses, the employee may still be entitled to receive them, depending on the terms of the agreement and the work already completed.

Repatriation Ticket

In most cases, the employer must provide the employee with a return ticket to their home country unless the employee joins another employer within the UAE.

When Must the Employer Pay the Final Settlement?

The employer is required to pay all employee dues within 14 days from the termination date, as per UAE Labour Law.

What If the Employer Refuses to Pay?

If the employer fails to pay the employee’s entitlements, the employee has the right to file a labour complaint. Supporting evidence such as contracts, salary records, and communication logs will strengthen the claim.

Conclusion

Employee rights after termination in the UAE are clearly protected by law. Understanding these rights is essential to ensure that all financial entitlements are properly received after the end of employment.