How the UAE labour dispute system works
Labour relations in the private sector are governed by Federal Decree-Law No. 33 of 2021. Article 54, which sets out the dispute procedure, was amended by Federal Decree-Law No. 20 of 2023 and again by Federal Decree-Law No. 9 of 2024. The core rule has not changed: a labour claim must start at MOHRE. You cannot go straight to court.
The system applies to private-sector employees in mainland UAE. Employees in the Dubai International Financial Centre and Abu Dhabi Global Market are covered by those free zones' own employment laws and courts. Domestic workers are covered by Federal Decree-Law No. 9 of 2022, and their complaints also go to MOHRE.
Key rules after the recent amendments
- MOHRE can issue a binding decision on disputes worth up to AED 50,000, and on any dispute where a party breaches a settlement MOHRE has approved.
- A MOHRE decision has the force of a writ of execution and can be enforced like a judgment.
- Either party can appeal a MOHRE decision to the Court of Appeal within 15 working days of being notified. The appeal suspends enforcement, and the Court of Appeal's ruling is final.
- For claims above AED 50,000, if there is no settlement within 14 days, MOHRE refers the dispute to the competent court with a summary and its recommendations.
- Where a dispute stops an employee's salary, MOHRE can order the employer to keep paying it for up to two months.
- Labour claims must be brought within two years of the right becoming due, up from one year, under the 2024 amendments.
The labour dispute process, step by step
- Raise it with the employerAsk for what you are owed in writing and keep a copy. Written requests and replies are useful evidence later.
- File a MOHRE complaintSubmit the complaint through the MOHRE app or website, an approved service centre or the call centre, listing your claims and attaching documents.
- Amicable settlementA MOHRE officer contacts both sides to try to reach a settlement. An approved settlement is binding.
- MOHRE decision up to AED 50,000If there is no agreement on a smaller claim, MOHRE decides it with a binding, enforceable decision.
- Referral to court for larger claimsClaims above AED 50,000 that are not settled within 14 days are referred to the labour court, and the case is registered there.
- AppealA MOHRE decision can be appealed to the Court of Appeal within 15 working days. Its ruling is final.
- EnforcementIf the other side does not comply, open an execution file to collect what is owed.
What an employee can claim
- Unpaid wages and agreed allowances.
- End-of-service gratuity, based on length of service and basic salary.
- Pay in lieu of unused annual leave.
- Pay in lieu of notice where the required notice was not given.
- Compensation for unlawful dismissal, which can be up to three months' wages.
- A repatriation ticket, where due under the contract and the law.
- A service certificate and cancellation of the work permit.
Employers can also file complaints, for example to recover advances or claim compensation for damage caused by an employee.
How end-of-service gratuity is calculated
Under Article 51 of Federal Decree-Law No. 33 of 2021, a full-time employee who has completed at least one year of service is entitled to gratuity based on the last basic salary: 21 days' basic pay for each of the first five years, and 30 days' basic pay for each year after that. Total gratuity cannot exceed two years' pay. Part years count in proportion, unpaid absence days are excluded, and the employer may deduct amounts the employee legally owes.
| Service | Calculation | Approximate gratuity |
|---|---|---|
| 3 years | 3 × 21 days × (6,000 ÷ 30) | AED 12,600 |
| 5 years | 5 × 21 days × 200 | AED 21,000 |
| 8 years | (5 × 21 + 3 × 30) days × 200 | AED 39,000 |
These are simplified examples. The actual figure depends on the contract and the exact length of service.
Unfair dismissal and protection for employees who complain
Dismissing an employee because they filed a genuine complaint with MOHRE or a justified case against the employer is unlawful. The court can award compensation based on the type of work, the harm and the length of service, up to three months' wages, on top of gratuity and other dues. Employees should not hold back a legitimate complaint for fear of losing their job.
If you are an employer
Keep proper records of attendance, leave and salaries paid through the Wage Protection System, and document written warnings and the reasons for any termination. These records are your main defence at MOHRE and in court. Final dues must be paid within 14 days of the end of employment; late payment exposes the employer to further claims and MOHRE action.
Typical timelines
| Stage | Timeline |
|---|---|
| MOHRE settlement attempt | Up to 14 days (by law) |
| MOHRE decision on claims up to AED 50,000 | Usually within a few weeks |
| Appeal against a MOHRE decision | Within 15 working days of notification (by law) |
| Labour court case at first instance | Usually 1 to 4 months |
| Limitation period | Two years from when the right becomes due |
Timelines not set by law are typical estimates and can be longer where an accounting expert is appointed.
Fees and costs
- MOHRE complaint: filing a complaint with MOHRE is normally free for employees.
- Court fees: claims filed by employees are exempt from court fees at all stages where the claim does not exceed AED 100,000. Larger claims carry the usual fees.
- Experts and enforcement: an accounting expert's deposit or execution fees may apply in some cases.
- Our legal fees: we quote after reviewing the contract and claims, usually a fixed fee for straightforward claims and fees by stage for larger disputes.
Documents you need
- Your MOHRE-registered employment contract and any amendments.
- Passport, Emirates ID and work permit.
- Salary statements or Wage Protection System records.
- The termination or resignation letter and related correspondence.
- A list of your claims and how each amount is calculated.
Common mistakes to avoid
- Waiting until the two-year limitation period is almost over.
- Signing a full and final settlement before receiving everything owed.
- Leaving the job without proper notice, which can be used against the employee.
- Calculating gratuity on total salary instead of basic salary.
- Missing the 15-working-day deadline to appeal a MOHRE decision.
How Husain Al Ali Advocates can help
We act for employees and employers at every stage: preparing the complaint and calculating entitlements, negotiating at MOHRE, appealing its decisions, representing clients in the labour courts and enforcing judgments. Call +971 4 451 0523 or message us on WhatsApp.
This page is general information about UAE law, not legal advice.
Do not rely solely on the information available on the website; you should consult a lawyer to clarify many matters.
Related guides: UAE labour law, labour cases under UAE law.
Frequently asked questions
Can I file a labour case directly in court?
No. A complaint must first be filed with MOHRE. The court only hears the case after MOHRE refers it.
Which claims does MOHRE decide itself?
Claims worth up to AED 50,000, and any dispute where a party breaches a settlement MOHRE has approved.
How long does MOHRE have to settle a dispute?
For claims above AED 50,000, if there is no settlement within 14 days, MOHRE refers the dispute to court.
How do I appeal a MOHRE decision?
File an appeal with the Court of Appeal within 15 working days of being notified. The appeal suspends enforcement, and the court's ruling is final.
What is the time limit for a labour claim?
Two years from the date the right became due, under the 2024 amendments.
Do employees pay court fees in labour cases?
Employee claims are exempt from court fees where the claim does not exceed AED 100,000.
Will I be paid during the dispute?
MOHRE can order the employer to keep paying your salary for up to two months if the dispute has stopped it.
How much compensation can I get for unfair dismissal?
Up to three months' wages, assessed by the court based on the circumstances, length of service and harm.
Does this apply to DIFC or ADGM employees?
No. DIFC and ADGM employees are covered by their own employment laws and courts.
Do I need a lawyer for a MOHRE complaint?
It is not mandatory, but a lawyer helps you calculate your claims correctly, avoid unfair settlements and meet the appeal deadline.