Questions & Answers
Is waiver of end of service gratuity legal in the UAE?
Employee Waiver Agreement, is it legal?
Our employer did not pay our final salary and end of service gratuity. They demand that we sign this agreement, and if not, we were told we receive no money.
After signing the waiver, the employer has not paid. It appears they never planned to pay. They planned to show the document in the court.
Dear Sir/ Madam,
I hope you are fine.
With regard to your question, such an agreement is not legal. The UAE Labour Law provides that. According to Article 132 of the UAE Labour Law, the worker who has completed one or more years of continuous service shall be entitled to the end of service gratuity at the end of his employment.
Furthermore, the Law provides for the calculation of the gratuity. Thus, the end of service gratuity shall be calculated as follows – 21 days wage for each of the first five years of service and 30 days’ wage for each additional year of service provided always that the aggregate amount of end of service gratuity should not exceed two years wage. Therefore, if you complete one or more years of service to a company, you are entitled to your end of service gratuity.
However, should your employer refuse to pay you, you have to first issue a complaint before the Labour Department and if it is not resolved at that stage, it would be transferred to court. If such waiver agreement is presented to the Court, such agreement is contrary to what the law provides, therefore, the Court would not accept such.
Should you have further comments/clarification, do not fail to contact me on aws@awsuwaidi-advocates.com/ info@awsuwaidi-advocates.com/ 045547635.
Best Regards,
Aws M. Younis
Abdulla Al Suwaidi Advocates & Legal Consultants
