How to Resolve UAE Gratuity Disputes in 2025: A Simple Step-by-Step Guide
You’ve put in long hours in the UAE—maybe teaching kids in school, helping a family as a domestic worker, or working in a private company. Now you’re ready to move on, but your employer holds up your gratuity payment or says you’re not getting it. That’s tough to hear. This can happen in any setting — whether you’re in mainland UAE, a free zone like JAFZA, DMCC, or Hamriyah Free Zone, or even enrolled in DIFC’s DEWS savings scheme. The good news is that UAE labour laws and the Ministry of Human Resources and Emiratisation (MOHRE) have clear processes to help you get what’s owed. In 2025, you can sort this out with a few clear steps. I’ve guided friends through this mess before, and I’ll break it down for you like we’re just talking it over. Let’s get your money sorted!
What UAE Law Says About Gratuity
Under Federal Decree-Law No. 33 of 2021 (updated 2023), employees with at least one year of service are entitled to gratuity based on basic salary:
– 1–5 years: 21 days per year
– 5+ years: 30 days per year, capped at 2 years salary
– Under 1 year: usually no gratuity unless your contract allows
Start by estimating your payout with our UAE Gratuity Calculator. If you’re in a free zone, use the Free Zone Gratuity Calculator for zone-specific rules. Domestic workers follow Federal Decree-Law No. 9 of 2022, with entitlements set by Cabinet-approved mechanisms; see our Domestic Worker Gratuity Guide for details.
Step-by-Step: Filing a Gratuity Complaint
Dealing with a UAE gratuity dispute in 2025 is doable. Here’s how to handle a gratuity complaint in 2025 through MOHRE’s official process.
Check Your Contract
First, pull out your employment contract and give it a good look. Since 2022, UAE contracts are fixed-term (up to three years, renewable). Check start date, basic salary, and any gratuity details. If you’re part-time, make sure your hours arIf you’re part-time, make sure your hours are counted correctly. Not clear? Call MOHRE at 600 59 0000 or ask a labour lawyer. I once helped a buddy find a key gratuity term in their contract that saved their case.
Gather Your Evidence
You’ll need proof to support your gratuity complaint. Round up:
- Your contract (paper or digital).
- Payslips showing basic salary.
- Proof of work, like an offer letter or timesheets.
- Messages about gratuity (emails or WhatsApp texts).
- Your Emirates ID and passport.
Keep these in one place—it makes things easier and strengthens your case.
File with MoHRE
To start a gratuity complaint in UAE, reach out to MOHRE:
- Go to MOHRE complaints registeration page, use the MOHRE app, or call 600 59 0000.
- Fill out a labour complaint with your employer’s details and the gratuity issue.
- Upload your documents.
- Get a case number to track your complaint.
MOHRE usually works to fix things within 14 working days, contacting your employer to find a fair solution. If you’re in JAFZA, see our JAFZA gratuity guide before raising a dispute with JAFZA Authority.
What Happens Next?
After you file:
- Investigation: MOHRE checks your documents and talks to your employer.
- Mediation: They might set up a mediation session to help settle the dispute. If you both agree, you’re done.
- Court: If mediation fails or your claim is over AED 50,000, it could go to a labour court. Either party can file with the competent court within 15 working days of the MOHRE decision.
- Court process: A judge reviews everything. Lawyers are helpful for bigger claims.
If a final decision isn’t honored, authorities can enforce judgments and impose significant fines (certain labour-law violations carry penalties up to AED 1,000,000), and licenses can be impacted.
Employer Responsibilities to Avoid Disputes
If you’re an employer, here’s how you need to stay compliant and avoid disputes:
- Pay on Time: Gratuity should be disbursed within 14 days of contract termination to avoid penalties.
- Calculate Correctly: Use only the basic salary (21 days for 1–5 years, 30 days after, capped at two years for employees; for domestic workers, follow Law No. 9 of 2022 and any approved mechanisms; verify against your contract and MOHRE guidance, or double-check with our UAE Gratuity Calculator, which applies the official MOHRE formula.
- Keep Records: Maintain clear records of employee service, salary, and any unpaid leave.
- Clear Contracts: Mention gratuity terms in detail in contracts to avoid confusion.
- No Unauthorized Deductions: Deductions (e.g., for loans) need employee consent and proof (Article 53).
Consequences of Non-Compliance:
- Fines from AED 5,000 to AED 1,000,000.
- License suspension.
- Legal action from employees, including domestic workers.
Key Labour Law Articles
These UAE labour law gratuity rules from Federal Decree-Law No. 33 of 2021 help in a UAE gratuity dispute:
- Article 51 (Decree-Law 33/2021): Gratuity = 21 days’ wage per year for the first five years, 30 days thereafter, capped at two years’ salary. (Source: UAE Gov Portal)
- Article 53: All dues, including gratuity, must be paid within 14 days of contract end. (Source: UAE Gov Portal)
- Article 44: Serious misconduct, if proven, may forfeit gratuity. (Source: UAE Gov Portal)
- Executive Regulations (Cabinet Res. 1/2022): Explain how to prorate gratuity for part-time/flexible work. (Source: UAE Gov Portal)
- Domestic Workers (Law No. 9/2022): Entitlements follow Cabinet-approved rules and must be settled within 10 days of contract expiry. (Source: UAE Gov Portal)
See more at UAE legislation.
Why Disputes Happen
UAE gratuity disputes often come from:
- Wrong math: Using total salary or miscounting service years.
- Late payments: Missing the 14-day deadline.
- Contract confusion: Unclear terms spark arguments.
- Unfair firing: Invalid terminations may still mean you get gratuity.
- Unpaid leave: Employers need records to exclude those days.
Talking to your employer early can stop things from escalating.
Some disputes arise from company shutdowns or absconding claims, where gratuity eligibility changes — our Company Shutdown Gratuity UAE: Absconding & Suspension (2025 Guide) explains how MOHRE handles these scenarios.
Mistakes to Avoid
Workers:
- Don’t quit without notice (30–90 days). It risks your gratuity.
- Don’t assume allowances count—only basic salary does.
- Keep documents safe.
Avoiding these mistakes can save both workers and employers from a prolonged gratuity dispute in 2025.
Employers:
- Communicate openly with employees about their entitlements.
- Pay within 14 days to avoid fines.
- Use clear contract terms.
- Don’t deduct without proof and consent.
Our gratuity calculator is useful for both workers and employers, providing accurate calculations according to MOHRE guidelines.
FAQs
Conclusion
A UAE gratuity dispute in 2025 doesn’t have to drag on. With the right documents and MOHRE’s process, most employees resolve their gratuity complaints quickly. Laws like Article 51 protect you, and MOHRE often resolves cases quickly and fairly for both workers and employers. If that fails, a labour court is next. If you need formal help? Register your complaint with MOHRE or call 600 59 0000 to get support.
Author Bio
Written by Noor Al Emarat — Editorial Team at Gratuity Calculator UAE. The team focuses on accurate, practical guidance covering gratuity calculations, HR processes, and UAE labour law. Every article is carefully reviewed to help both employees and employers understand end-of-service benefits and workplace rights with confidence.
