Labor & Employment Cases

For employees with one year or more of service: 21 days’ basic wage per year for the first five years, then 30 days per year thereafter, capped at two years’ total wage. Partial years are pro-rated, and allowances (housing, transport) are excluded. Most disputes turn on what counts as "basic salary" — the MOHRE-registered contract is the reference.

Termination is unlawful if it was due to a genuine complaint the employee filed with MOHRE or a lawsuit against the employer that proved valid. The court then awards compensation assessed by the nature of work, the harm, and length of service — capped at three months’ wage. Other entitlements (gratuity, leave, notice) remain due independently of this compensation.

A labor claim cannot be heard after one year from the date the entitlement fell due — one of the shortest limitation periods in UAE law. You must also start with a MOHRE complaint before going to court. Delay is the single most common reason we see full labor entitlements lost.

A non-compete is valid only if it is specific and reasonable in three elements together: geography, duration (max two years), and the type of activity — and only to the extent needed to protect legitimate business interests. Overbroad clauses can be struck down or narrowed by the court, and the employer bears the burden of proving actual harm. Never sign an admission of breach before having the clause reviewed.