What Happens in MOHRE Arbitration for Gratuity Claims

MOHRE Arbitration vs Court

| Factor | MOHRE Arbitration | Labour Court | |--------|---|---| | Cost | Free | Filing fee (AED 50–500) | | Speed | 30–90 days | 3–6+ months | | Complexity | Simple, informal | Formal legal procedures | | Appeal | Limited | Full appeal available | | Decision | MOHRE directive | Court judgment |

MOHRE Arbitration Process

Step 1: Complaint to MOHRE

• File gratuity complaint (see: How to File a Gratuity Dispute)
• MOHRE reviews: calculation, contract, payroll records

Step 2: MOHRE Investigation (30–60 days)

• MOHRE contacts employer
• Requests documentation
• Investigates calculation discrepancies

Step 3: MOHRE Findings

• MOHRE analyzes MOHRE formula compliance
• Assesses deduction legality
• Determines correct entitlement

Step 4: MOHRE Decision & Directive

• Issues written decision
• Directs employer to pay
• Employer has 15 days to comply

Step 5: Enforcement

• If employer complies: ✅ Case closed
• If employer doesn't comply: Escalate to court or MOHRE enforcement

When Arbitration Works Best

✅ Clear calculation errors (easy to verify)
✅ Late payment disputes (straightforward)
✅ Deduction clarity (obvious violations)
✅ Employer willing to settle (cooperative)

❌ Complex disputes (multiple issues)
❌ Uncooperative employers
❌ Employer bankruptcies

Key Benefits

Speed: 3 months vs 6+ months in court
Cost: Free vs filing fees + lawyer costs
Simplicity: No legal procedures required
Expertise: MOHRE knows labour law intimately

Escalation to Labour Court

If unsatisfied with MOHRE decision:

1. Appeal within 30 days to Labour Court
2. Court reviews MOHRE decision
3. Court may:
   • Uphold MOHRE
   • Overturn and award more
   • Award damages + interest

Court costs: Minimal (AED 100–300 filing)

For an instant end-of-service estimate, use our online gratuity calculator UAE.

Disclaimer: MOHRE procedures as of 2025. Consult MOHRE (16000) for your specific case.