Real Employee Gratuity Case Studies in UAE
TL;DR: Five documented UAE gratuity cases demonstrate common disputes including salary component errors, non-payment delays, illegal deductions, part-time worker entitlements, and successful court appeals. MOHRE enforcement recovered employee payments in all cases, with resolution times ranging from 45 to 137 days and outcomes favoring informed employees who documented their claims properly.
These real-world cases illustrate the importance of understanding how to calculate gratuity correctly and knowing your rights under UAE Labour Law 2025. Each case shows how employees can protect themselves by understanding common calculation errors and being prepared to file a gratuity dispute when necessary. Use our gratuity calculator to verify your employer's settlement offer.
Case Study 1: Salary Component Miscalculation
Employee: Priya (Indian accountant, Dubai)
Employer: Finance firm
Issue: Employer included bonus in basic salary for gratuity
Details:
- Contract basic salary: AED 4,000/month
- Monthly bonus (variable): AED 1,000 average
- Service: 3 years
- Employer calculated: (5,000÷30) × 0.3333 × 3 = AED 500
Priya's correct calculation:
- Should use basic only: (4,000÷30) × 0.3333 × 3 = AED 400
Dispute: Employer offered AED 500; Priya claimed AED 400... wait, AED 500 is MORE. Priya contacted MOHRE to be sure.
MOHRE Findings: Bonus is NOT basic. Gratuity = AED 400. But employer overpaid her!
Resolution: Priya received AED 400 (employer was actually generous). Priya won by being informed.
Case Study 2: Non-Payment for 90 Days
Employee: Ahmed (Egyptian supervisor, Abu Dhabi)
Employer: Construction company
Issue: No gratuity payment 90 days after contract end
Details:
- Contract ended: 1 October 2024
- Gratuity calculated: AED 3,500
- Employer claim: "Processing delay, will pay in 2 months"
- By day 90: Still no payment
Ahmed's Action:
- Filed MOHRE complaint (day 92)
- MOHRE investigated (45 days)
- MOHRE issued directive (day 137)
- Employer paid within 15 days
Final Payment Calculation:
- Gratuity: AED 3,500
- Interest (90 days late @ 0.5%/month): AED 52.50
- MOHRE fine on employer: AED 1,000
- Ahmed received: AED 3,552.50
Resolution: MOHRE enforcement worked. Ahmed won by being persistent.
Case Study 3: Illegal Deduction for "Damages"
Employee: Fatima (UAE national, sales)
Employer: Retail company
Issue: Employer deducted AED 500 for "damaged merchandise"
Details:
- Calculated gratuity: AED 2,000
- Employer deduction: AED 500 (no documentation)
- Employer paid: AED 1,500
- Fatima's claim: Deduction not justified
MOHRE Investigation:
- Requested deduction documentation from employer
- Employer had no evidence
- MOHRE ruled: No proof = deduction invalid
Final Outcome:
- Ordered employer to pay: AED 500 (difference)
- Plus interest: AED 10 (60-day delay)
- Fatima received additional: AED 510
Resolution: Documentation requirement protected Fatima. Fatima won by requesting proof.
Case Study 4: Part-Time Gratuity Claim
Employee: Li (Filipino, part-time office staff)
Employer: Consulting firm
Issue: Employer claimed part-timers aren't entitled to gratuity
Details:
- Part-time: 20 hours/week @ AED 100/hour = AED 2,000/month basic
- Service: 1.5 years (unlimited contract)
- Employer claim: "Part-timers don't get gratuity"
- Li's calculation: (2,000÷30) × 0.3333 × 1.5 = AED 333
MOHRE Finding:
- Part-time employment is still employment
- Same MOHRE law applies
- Gratuity = AED 333 (based on part-time salary)
Final Outcome:
- Employer ordered to pay: AED 333
- Li won by knowing rights.
Case Study 5: Labour Court Appeal
Employee: Mohammed (Omani, engineer)
Employer: Engineering firm
Issue: MOHRE's decision seemed low; decided to appeal
Details:
- MOHRE calculated gratuity: AED 4,500
- Mohammed calculated himself: AED 5,000
- Difference: AED 500
Labour Court Review:
- Court rechecked calculation
- Court agreed with Mohammed: AED 5,000 correct
- Added 10% delay compensation: AED 500
- Court awarded: AED 5,500
Final Outcome:
- Initial MOHRE offer: AED 4,500
- Final court award: AED 5,500
- Mohammed won by appealing (+AED 1,000 total).
Key Lessons from These Cases
| Case | Lesson | |------|--------| | Priya | Understand salary components (bonus ≠ basic) | | Ahmed | Don't wait—file MOHRE complaint if delayed | | Fatima | Demand documentation for deductions | | Li | Part-timers have full gratuity rights | | Mohammed | Court appeals can increase awards |
How to Protect Yourself
- Calculate your own gratuity using our calculator
- Request written breakdown from employer
- Compare to your calculation
- Challenge discrepancies in writing
- File MOHRE complaint if no resolution (free!)
- Appeal to Labour Court if MOHRE decision seems wrong
For an instant end-of-service estimate, use our online gratuity calculator UAE.
Real cases prove: Informed employees win!
