Questions & Answers
My previous organization has not yet released EOSB because I contacted a client. Is this legal?
I recently joined a new organization in the Hamriyah Free Zone, and my previous organization has not released my end-of-service benefits.
The HR has instructed the finance team not to do so because I had contacted one of their clients.
In my DMCC contract, there is no Non-Compete clause, but the offer letter has one, and now they are not releasing the end-of-service.
Is this legal? What are my rights?
Dear Questioner,
Thank you for your message.
Kindly note that your previous employer is not legally entitled to withhold your end-of-service benefits, as this is a right granted to employees under UAE Labour Law, provided that the minimum period of service is met.
The presence of a non-compete clause only has bearing if it is clearly stated in your employment contract, and not solely in the offer letter.
Should your employer believe there has been a breach, they must pursue it through the proper legal channels, and cannot unilaterally withhold your dues.
You have the right to file a formal complaint with the competent authority, either the DMCC or Hamriyah Free Zone, depending on where the company is registered.
If you wish to take further legal action or require assistance in this matter, we would be pleased to support you.
Best regards,
Mohammed Salah
Legal Consultant
Dear Inquirer,
Thank you for your message.
If your employment contract under DMCC does not include a non-compete clause, then the enforceability of the clause in your offer letter alone is legally questionable.
Employers cannot lawfully withhold your End of Service Benefits (EOSB) unless there is a final court judgment confirming a breach of contractual obligations.
Blocking your EOSB due to alleged client contact, without a proper legal basis, may be considered unlawful under the UAE Labour Law.
To protect your rights and possibly recover your entitlements, we recommend booking a legal consultation or authorizing our office to act on your behalf.
Under UAE law, end-of-service benefits cannot be withheld without a legal basis or court judgment.
A non-compete clause mentioned only in the offer letter, and not in the official employment contract, is generally not enforceable.
Our legal center specializes in such disputes and can assist you in claiming your rights.
For more details and legal support, please contact us via WhatsApp.
Hello,
No, it is not legal for your previous employer to withhold your end-of-service benefits (EOSB) simply because they believe you violated a non-compete clause — especially if your official employment contract (filed with DMCC or MOHRE) does not include a non-compete clause.
The company has not gone to court and proven harm. They are withholding EOSB without legal grounds or a judgment.
Under UAE Labour Law (Federal Decree Law No. 33 of 2021, Article 53), employers are obligated to pay end-of-service gratuity within 14 days of the employee's last working day, unless there's a court order preventing it.
A non-compete clause in an offer letter is only enforceable if it appears in the final signed labour contract registered with DMCC or MOHRE.
If the registered contract doesn’t mention a non-compete, then that clause is not legally binding. Even if there were a valid clause, the employer must prove actual harm in court to enforce it.
For further assistance, kindly share your WhatsApp number.
Dear Sir,
Withholding your end-of-service benefits due to contacting a client is not legal, especially since there is no non-compete clause in your official DMCC contract.
The offer letter does not override the registered employment contract. You have the right to claim your dues through the DMCC authority or the labor court.
If you need further assistance, feel free to contact us, and our office can assist you
