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My Employer Is Refusing to Pay My Gratuity

“My employer is refusing to pay my gratuity, and I don't know if they're even allowed to do that.”

End-of-service gratuity is a statutory or scheme-based payment owed to an eligible employee at the end of employment, calculated differently depending on whether federal law, the DIFC's funded scheme, or the ADGM's regulations govern your contract.

Gratuity isn't a bonus your employer can withhold at their discretion — it's a legal entitlement once you meet the qualifying service period, and refusing to pay it is a breach you can pursue through a formal claim. How it's calculated, and even what it's called, changes sharply between the mainland, DIFC and ADGM. LEXNOVA can help you describe your situation and explore lawyers who handle gratuity and end-of-service disputes in the right jurisdiction — every match is reviewed by a person, and any advice comes from the lawyer you choose.

LAST REVIEWED 21 SEPTEMBER 2026

WHERE THIS IS HANDLED

MOHRE then the Labour Court for mainland claims; the DIFC Courts for DIFC employers and DEWS disputes; the ADGM Courts for ADGM employers.

How the answer changes by jurisdiction

  • Dubai mainland

    Federal Decree-Law No. 33 of 2021 (as amended) sets a statutory gratuity formula based on your basic wage and years of service. It's generally paid as a lump sum at the end of employment, and a refusal to pay can be pursued through MOHRE and, if needed, the Labour Court.

  • Abu Dhabi mainland

    Identical federal rules apply — Abu Dhabi mainland employment follows the same statutory gratuity formula and the same MOHRE-first claim process as Dubai mainland.

  • DIFC

    The DIFC doesn't use the federal lump-sum gratuity model at all. Instead, it mandates DEWS — a funded, defined-contribution workplace savings scheme your employer must pay into throughout your employment, closer in structure to a pension than a one-off payout. If your employer failed to contribute, or a legacy gratuity arrangement predates DEWS, the DIFC Courts handle the claim, not MOHRE.

  • ADGM

    The ADGM Employment Regulations 2024 state expressly that gratuity is payable even where the employment is terminated for cause (the mainland federal law and the DIFC law also keep accrued end-of-service entitlements on dismissal for cause), and an employer cannot lawfully make visa cancellation conditional on you waiving your entitlements. Claims go to the ADGM Courts.

WHAT YOU CAN DO NEXT

STEP 01

Work out which regime actually applies to you

Your entitlement, and even the basic structure of what you're owed, depends entirely on whether your employer is mainland, DIFC or ADGM. A DIFC employee shouldn't expect the federal lump-sum formula; an ADGM employee is owed gratuity even if dismissed for cause, which the ADGM rules say expressly — and the mainland federal law does not remove gratuity on dismissal either.

STEP 02

Calculate what you believe you're owed

For mainland employees, this generally turns on your basic wage — not total salary — and your years of service, with part years counted in proportion once you have completed one year. For DIFC employees, check whether and how much your employer actually contributed to your DEWS account over your employment — the record should be visible to you. For ADGM employees, confirm the calculation applies regardless of how your employment ended, including termination for cause.

What termination pay adds up to on the mainland (Federal Decree-Law No. 33 of 2021): first, notice of 30 to 90 days as agreed, paid at your last wage, or an equal payment in lieu (Article 43); second, gratuity once you have a year's continuous service, at 21 days' basic wage for each of the first five years and 30 days' for each year after, capped at two years' wage (Article 51), so seven years comes to 165 days' basic wage; third, untaken annual leave, paid on the basic wage (Article 29; Executive Regulation, Article 19); fourth, unpaid wages, all due within 14 days of the contract ending (Article 53); and fifth, compensation only if a dismissal is found unlawful, set by the court and capped at three months' wage (Article 47; see 'I Was Fired Without a Real Reason'). DIFC and ADGM differ; see 'Federal, DIFC, or ADGM: The Three UAE Employment Regimes'.

STEP 03

Request a formal, written breakdown from your employer

Ask for the calculation in writing, referencing your basic wage, service period and any deductions applied. A written refusal or a demonstrably wrong calculation is far stronger evidence than a verbal dispute when you escalate.

STEP 04

File your claim through the right forum

Mainland: a MOHRE complaint, with escalation to the Labour Court if unresolved. DIFC: a claim with the DIFC Courts, which may also involve the DEWS scheme administrator directly if the dispute is about missed contributions. ADGM: a claim with the ADGM Courts.

STEP 05

Don't accept a visa-cancellation-for-waiver trade

In ADGM in particular, an employer cannot lawfully condition cancelling your visa on you signing away your gratuity or other entitlements — if this is being pressured on you, it's a red flag worth raising with a lawyer before you sign anything.

STEP 06

Move before the limitation period closes

Federal law generally gives you two years from termination to claim. DIFC and ADGM apply their own limitation rules. Either way, don't let the deadline drive your timeline — evidence, employer cooperation and your own memory of the details all degrade well before any legal deadline arrives.

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FAQ

It's based on your basic wage and your years of continuous service (part years count in proportion once you have completed one year), following the formula set out in federal employment law. It's calculated on the basic wage component of your salary, not your total package including allowances.

No. DIFC replaced the lump-sum gratuity model with DEWS, a funded workplace savings scheme your employer must contribute to throughout your employment, closer in structure to a pension than a one-off payout.

DEWS is the DIFC Employee Workplace Savings scheme — a mandatory, funded arrangement where your employer pays contributions into an account on your behalf, rather than owing you a lump sum calculated only at the end of your employment.

Yes. The ADGM Employment Regulations 2024 provide for gratuity even where termination was for cause — and although ADGM states this expressly, it is not unique: the mainland federal law does not remove gratuity on dismissal, and the DIFC law also calculates gratuity and outstanding leave up to the termination date on dismissal for cause.

In ADGM, this is expressly not permitted — an employer cannot condition visa cancellation on a waiver of your entitlements. If you're facing this kind of pressure, don't sign under time pressure; get legal advice first.

This is a straightforward breach you can pursue formally: MOHRE conciliation and, if needed, the Labour Court for mainland employers; the DIFC Courts for DIFC employers; the ADGM Courts for ADGM employers.

On the mainland, it's generally calculated on your basic wage specifically, not your total package including housing, transport or other allowances — a distinction worth checking carefully if your employer's figure looks low.

You generally remain entitled to gratuity if you meet the minimum service period; under the mainland federal law, resigning does not reduce or remove it, while DIFC and ADGM apply their own rules.

Generally yes, under the mainland federal regime — very short periods of service may not qualify. Confirm your specific service length and jurisdiction's threshold rather than assuming either way.

Yes, these are commonly pursued together where both are outstanding, particularly through MOHRE conciliation on the mainland, which can address multiple heads of claim in one process.

You should have visibility of your DEWS account and contribution history as an employee. If contributions appear to be missing, this is a specific, documentable dispute you can raise with the scheme administrator and, if needed, the DIFC Courts.

Under federal law, the general limitation period is two years from the end of employment. DIFC and ADGM have their own limitation rules, so confirm the specific period that applies to your jurisdiction.

Yes — Abu Dhabi mainland employment follows the same federal law and the same MOHRE process as Dubai mainland, since this isn't an emirate-specific regime.

Your entitlement doesn't disappear because the company is in financial difficulty. Depending on the circumstances, you may need to pursue a claim against remaining company assets or through insolvency proceedings — a lawyer can advise on the right route given the specific situation.

Generally yes. Under the current federal law, dismissal — even without notice under Article 44 — does not remove the gratuity: the law expressly preserves it even on disciplinary dismissal, and the employer may deduct only amounts due by law or under a court judgment. 'Gross misconduct' is not itself a statutory term, so get advice if your employer is withholding the gratuity on that basis.

No. ADGM states it expressly, but the mainland federal law also preserves gratuity on disciplinary dismissal, and the DIFC law calculates the gratuity payment and outstanding leave up to the termination date on dismissal for cause — worth flagging specifically if you're comparing what you'd be owed under each regime.

Not always — straightforward, clearly calculable shortfalls sometimes resolve through direct request or MOHRE conciliation without one. A lawyer becomes more valuable once your employer disputes the calculation, delays indefinitely, or the claim involves DIFC's DEWS scheme or ADGM's regulations.

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A connection or introduction does not constitute a guarantee, endorsement, or assurance of outcome. Users should independently confirm the professional's qualifications, authorization, fees, scope of engagement, and suitability.

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