Questions & Answers
Am I entitled to full 3 months’ pay with benefits plus EOS gratuity after sudden termination?
Hello,
I have been working at a company in DMCC for nearly 5 years. I work in sales with varying annual results, ranging from overachieving to underachieving in a difficult market.
This year, my manager gave me a very high target and lower targets to my colleagues. Our sales are mostly achieved in the last 3 months of the year when companies finally spend their annual budget.
Now, my manager has suddenly decided to terminate me without any warning because of performance issues. They are offering to pay the minimum end-of-service gratuity plus 3 months’ basic salary and unpaid leave days.
Am I entitled to 3 months’ full pay, including benefits, in addition to the End of Service gratuity and unpaid leave days?
Hello,
Under the UAE Labour Law, if your employer terminates your contract, they must provide you with a written notice of at least 30 days or pay you the equivalent salary instead of notice.
You are entitled to receive your full salary during the notice period, even if you do not require you to work.
Regarding the compensation offer, you should receive your full end-of-service gratuity based on your total period of service, plus payment for any unused annual leave.
The 3 months’ basic salary offered by your employer may represent the notice period pay, but is not a substitute for your full gratuity entitlement.
You should review your employment contract and settlement offer carefully. If there is a shortfall or unfair treatment, you can file a complaint with MOHRE to recover your rightful dues.
Dear Inquirer,
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Dear Inquirer,
In cases of termination due to alleged performance issues, your entitlements will depend on the terms of your employment contract, DMCC regulations, and the UAE Labour Law.
While end-of-service gratuity and payment for accrued leave are standard, the question of whether you are entitled to 3 months’ full salary (including allowances/benefits) requires a detailed review of your contract and the circumstances of termination.
To properly assess your rights and negotiate or contest the settlement, we recommend a legal consultation. You may also authorize our office to represent you before the relevant authorities if needed.
Book a consultation with FUTURE VISION ADVOCATES & LEGAL CONSULTANCY today for tailored legal guidance.
The relationship between you and the employer shall be governed by the employment contract, which is organized by the Labour Relations (Organizing) Act and its amendments.
Based on that, any payment shall have a basis on the mentioned contract. The mode of your work and payment is based on a bonus plus the monthly salary, which has a special remuneration system.
So in order to provide accurate advice, we shall need to read the contract first to see how it regulates the after-service benefits and termination clause. If you wish to proceed, don't hesitate to share your contact number.
Dear questioner,
While the company's offer seems to cover some of the basics, you have strong grounds to argue for more, particularly for a higher "payment in lieu of notice" and compensation for what appears to be an arbitrary dismissal.
Take immediate action by filing a complaint with the DMCC Disputes Centre, and do not accept their current offer.
Thank you for contacting us via Legal Advice Middle East!
Your case falls under the scope of employment disputes in free zone companies, and we have successfully represented employees in almost identical situations where termination was based on alleged poor performance and the employer tried to limit compensation.
The key point is that while the company may offer a settlement, the law protects employees against arbitrary termination, especially if performance targets were set unfairly or termination happened without proper notice.
There are different possible routes. If you accept the settlement, you will receive only what is offered. If you challenge the termination, you may claim compensation for arbitrary dismissal in addition to your end-of-service gratuity, accrued leave, and unpaid salary.
The “3 months” offered by your employer appears to be a negotiated settlement, but legally, any compensation beyond gratuity and accrued entitlements depends on whether the termination can be proven to be arbitrary.
Courts in the UAE can award compensation up to a certain cap based on your last basic salary, but not automatically the full package with benefits.
The most strategic option is to review the exact terms of your employment contract, commission structure, and termination letter. This allows us to evaluate whether you can secure more than what the employer has put forward and negotiate from a stronger legal position.
This response is provided by RASHID ALKAITOOB ADVOCATES & LEGAL CONSULTANTS based solely on the information you’ve shared, and it does not constitute a final legal opinion.
A binding legal assessment requires reviewing your full employment documents and termination details. Our multilingual consultants in Arabic, English, Russian, Hindi, and Chinese are ready to assist you in protecting your rights.
From what you have explained, your case requires careful review under UAE Labour Law (Federal Decree-Law No. 33 of 2021 and its amendments), as well as DMCC’s own employment framework.
Termination on “performance issues” without prior warnings or documented evaluations is often questionable. Normally, unless there is termination for gross misconduct, you are entitled to:
- Notice period salary (usually 30 days, unless your contract specifies more),
- End of Service gratuity (based on length of service and final basic salary), and
- Payment of accrued but unused annual leave.
The “3 months” they are offering seems like an ex-gratia settlement rather than a statutory entitlement. Under UAE law, you are not automatically entitled to 3 months’ full pay, including benefits, unless:
- It is contractually agreed in your employment contract or company policy; or
- You were terminated in a way that could be challenged as an arbitrary dismissal. In such cases, the court may award compensation up to 3 months’ full wage (including allowances), in addition to gratuity and leave salary.
So the key question is whether the termination can be classified as an arbitrary dismissal (given sudden termination, a higher target than colleagues, and absence of warning letters). If yes, then you can claim up to 3 months’ full pay with benefits, not just basic salary.
Dear Questioner,
We have reviewed your case. Based on DMCC employment law, you may be entitled to more than what your employer is offering. It is important to address this matter quickly, as timing can directly affect your rights.
To proceed, please book an appointment via email and visit us at our Business Bay office, where we will review your documents and take care of the case in detail.
Best regards,
You are entitled to an end-of-service gratuity calculated based on your full monthly salary (including benefits) for two months for each of the first five years of your service, plus a monthly end-of-service gratuity for the sixth year (if your service extends to six years or more).
You are also entitled to accrue for your unused annual leave days.
