Asan Tata— November 2, 2026An Abu Dhabi labour court has ordered a company to pay a former employee AED 316,333 in unpaid wages, leave pay and end-of-service gratuity. The case, reported by Al Khaleej newspaper on 1 November 2026, is a useful reminder for every private-sector worker in the UAE: your salary, your leave and your gratuity are protected by law, and the employer must prove it paid you, not the other way round.
This article explains what the court ordered, why the employer lost the case, and what you should do if your own pay is delayed or missing.
Quick Answer
The Abu Dhabi Labour Court of First Instance ordered a company to pay a former employee AED 316,333 after more than 13 years of service. The award covers AED 232,500 in unpaid salaries, AED 9,000 in annual leave compensation and AED 74,833 in end-of-service gratuity. The court found that the company could not produce acceptable proof that it had paid these amounts. If your employer owes you money, you can complain to the Ministry of Human Resources and Emiratisation (MOHRE) free of charge, and MOHRE will first try to settle the dispute within 14 days.
What the Court Ordered
The employee worked for the company for 13 years, 11 months and 20 days. His contract set his gross monthly salary at AED 15,500. When the working relationship ended, he said he had not received his outstanding wages, his leave pay or his end-of-service gratuity. He filed a lawsuit against his former employer.
In his claim, he asked for AED 232,500 in unpaid wages, AED 75,164 in end-of-service gratuity and AED 9,000 in annual leave compensation. He also asked the court to make the company pay the legal costs and to make the judgment immediately enforceable.
The court awarded him almost everything he claimed. The only figure it reduced was the gratuity, which it set at AED 74,833 after calculating it under the legal rules. The final award breaks down as follows:
| Item | Amount claimed | Amount awarded |
|---|---|---|
| Unpaid salaries | AED 232,500 | AED 232,500 |
| Annual leave compensation | AED 9,000 | AED 9,000 |
| End-of-service gratuity | AED 75,164 | AED 74,833 |
| Total | AED 316,664 | AED 316,333 |
Two points matter here. First, this was a judgment of the Labour Court of First Instance, so it should not be treated as a final ruling that can never be challenged. Second, a court order is not the same as money in the bank: the reports do not confirm that the company has already paid.
Why the Employer Lost: Proof of Payment
The most important lesson of this case is about evidence. During the proceedings, the court explained that the employer carries the burden of proving that wages were paid. It is not enough for a company to simply deny a claim. It must show proper records.
In this case, the company failed to produce legally acceptable evidence that the employee had received the outstanding amounts. It also did not submit documents strong enough to challenge his claims about unpaid salaries. Because the employer could not prove payment, the court accepted the employee’s figures for wages and leave pay in full.
This is why payslips, bank statements and Wage Protection System (WPS) records matter so much. In the UAE private sector, salaries are normally paid through the WPS, which creates a clear electronic trail for both sides.
End-of-Service Gratuity: The Rules Behind the Award
End-of-service gratuity is a payment that eligible private-sector employees receive when their job ends. It is set out in Federal Decree-Law No. 33 of 2021, the UAE Labour Law, and it is calculated on the employee’s last basic wage, not on the full salary package. Allowances such as housing and transport are not included unless the contract says otherwise.
The basic formula is simple:
- An employee needs at least one year of continuous service to qualify. Less than one year means no gratuity.
- For each of the first five years of service, the gratuity is 21 days of basic wage per year.
- For each year after the fifth year, it is 30 days of basic wage per year.
- Part of a year counts on a pro-rata basis once the one-year minimum is met.
- The total gratuity cannot exceed two years of basic wage.
Since the 2021 law took effect on 2 February 2022, resigning no longer reduces the gratuity. An employee who resigns after one year of service receives the same full entitlement as an employee whose contract is ended by the employer. The old system, which cut the payment for early resignations, no longer applies.
One exception exists. An employee dismissed for serious misconduct under Article 44 of the Labour Law, for example fraud or violence at work, can lose the gratuity entitlement.
The gratuity in this court case was slightly lower than the employee claimed. That is normal. Courts calculate the figure from the basic wage and the exact service period, so the final number can differ from the amount written in the claim.
Annual Leave Pay: A Separate Entitlement
Annual leave compensation is separate from gratuity, and it must be settled on its own. Under the Labour Law, a private-sector employee is entitled to 30 days of paid annual leave per year after completing one full year of service. An employee with more than six months but less than one year of service earns two days of leave per month.
If employment ends before the leave is used, the worker must be paid for the unused balance. The payment is calculated on the basic wage. In this case, the court awarded AED 9,000 for leave covering the final two years of employment, because the company could not prove it had already paid that amount.
Workers should track their leave carefully. Keep a copy of every approved leave request and check your final settlement statement line by line.
The 14-Day Rule for Final Settlement
Under the Labour Law, the employer must pay the worker’s wages and all other entitlements within 14 days from the end date of the employment contract. This includes outstanding salary, end-of-service gratuity and payment for unused annual leave.
If the 14 days pass without payment, the worker has the right to escalate. Do not wait months before acting, as evidence becomes harder to gather over time.
There is also a long-stop deadline. Under Article 54 of the Labour Law, labour claims must generally be filed within two years from the date the entitlement fell due, most commonly the termination date. This is longer than the old one-year limit, but it is still a hard deadline. Missing it can end your claim.
How to File a Labour Complaint with MOHRE
MOHRE is the first stop for private-sector labour disputes in the UAE mainland. Filing a complaint is free, and MOHRE tries to settle the dispute before any case reaches court. Here are the steps:
Step 1: Gather your documents
Before you file, collect your employment contract, your Emirates ID, recent payslips, bank statements showing salary transfers, WPS records, leave approvals and any messages about pay or termination. Clear documents make your case much stronger.
Step 2: Get free advice first
Call the Labour Claims and Advisory Centre on 80084 for free guidance before you file. For general MOHRE enquiries, the call centre number is 600 590 000.
Step 3: File the complaint
File through the MOHRE app or the eServices portal on mohre.gov.ae, signing in with UAE Pass. You can also visit a Tas’heel service centre in person for help with filing.
Step 4: MOHRE tries to settle
MOHRE contacts both you and your employer and tries to reach an amicable settlement, normally within 14 days of the complaint. If you reach an agreement, MOHRE records it and closes the case.
Step 5: Decision or court referral
If no settlement is reached, what happens next depends on the size of the claim. For claims of AED 50,000 or less, MOHRE can issue a final, binding decision itself. For larger claims, MOHRE refers the case to the Labour Court. Workers who are referred to court should register the case with the competent court within 14 days of the referral approval.
One useful protection: labour claims below AED 100,000 are exempt from judicial fees, according to UAE government guidance. That removes one barrier for workers with smaller claims.
Documents Every Worker Should Keep
This court case shows that disputes are won on documents. Keep these records from your first day at work: a signed copy of your contract and any amendments, every payslip plus bank statements showing each transfer, WPS salary records, approved leave requests and your leave balance, written messages about pay delays or termination, and your final settlement statement, checked line by line before you sign it.
Never sign a final settlement or a receipt that says you received money you did not receive. Once you sign, it becomes very hard to prove otherwise. If a document is in a language you do not understand, ask for a translation before you sign.
What This Case Does Not Prove
It is important to read this case correctly. It does not mean every worker will receive a similar amount. Every case turns on its own contract, salary, service period and evidence. The AED 316,333 figure reflects this worker’s long service of nearly 14 years and his AED 15,500 monthly salary.
Finally, remember that this was a first-instance judgment. Either side may challenge it through the appeal process, and the reports do not state that the money has been paid. Treat the case as a guide to your rights, not as a promise of an outcome.
Frequently Asked Questions
How much gratuity do I get after 13 years of service?
It depends on your last basic wage. The formula is 21 days of basic wage for each of the first five years, plus 30 days for each year after that, capped at two years of basic wage. With a basic wage of AED 10,000, for example, the calculation would be 105 days for the first five years plus 240 days for eight further years, giving 345 days of basic wage, subject to the cap.
Can my employer refuse to pay my gratuity if I resign?
No. Since 2 February 2022, resigning does not reduce your gratuity, as long as you have completed at least one year of continuous service. The only common exception is dismissal for serious misconduct under Article 44 of the Labour Law.
How long does my employer have to pay my final settlement?
The employer must pay all wages and entitlements within 14 days from the end date of your contract. If payment is late, you can complain to MOHRE.
Is filing a MOHRE complaint free?
Yes. Filing a labour complaint with MOHRE is free, and advice from the Labour Claims and Advisory Centre on 80084 is also free. Labour claims below AED 100,000 are exempt from court fees if the case is referred to court.
What if my employer says it already paid me?
Then the employer must prove it. As this court case shows, the burden of proving payment rests on the employer. Bank transfers and WPS records are the usual proof. If your employer cannot produce them, the court may accept your claim.
Does this case apply to domestic workers and free zone employees?
Domestic workers are covered by a separate law with its own complaint timelines, so they should check the domestic worker rules before filing. Many free zones follow the mainland Labour Law, but DIFC and ADGM have their own employment and end-of-service systems.
Disclaimer: This article is general information only and is not legal advice. Labour cases depend on individual contracts and facts, so workers with a dispute should seek free advice from MOHRE on 80084 or consult a licensed legal professional before taking action.
Last Updated: 2 November 2026
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