What to Expect if Your Gratuity Case Goes to Court

When Cases Go to Court

Labour Court handles gratuity cases when:

• MOHRE decision unsatisfactory
• MOHRE has no jurisdiction (federal companies)
• Complex multi-issue disputes
• Employer appeals MOHRE decision

Court Process Timeline

| Stage | Duration | What Happens | |-------|----------|--------------| | Filing | 1 day | Submit case, pay fee (AED 100–300) | | Registration | 7 days | Court registers, sets hearing date | | First hearing | 14–30 days | Parties present claims, documents reviewed | | Investigation | 30–60 days | Court may request additional documents | | Second hearing | 60–90 days | Arguments, evidence presentation | | Decision | 90–180 days | Court issues written judgment | | Appeal (if needed) | 180–365 days | Appeal court hears case again | | Total | 3–12 months | Full resolution |

Costs to Consider

| Item | Cost | |------|------| | Filing fee | AED 100–300 | | Lawyer (optional) | AED 2,000–10,000+ | | Document copies | AED 100–500 | | Translation (if needed) | AED 500–2,000 | | Total typical | AED 3,000–12,500 |

What the Court Does

1. Reviews MOHRE investigation (if appealing)
2. Independently calculates gratuity using MOHRE formula
3. Assesses deduction legality
4. Determines correct amount owed
5. Awards damages for delay (typically 10%)
6. Issues binding judgment

Your Evidence Should Include

✅ Employment contract (signed)
✅ Payslips (all years)
✅ Your calculation spreadsheet
✅ MOHRE decision (if appealing)
✅ Proof of termination
✅ Any settlement communication
✅ Correspondence with employer

Typical Court Findings

Scenario A: Employer Underpaid

• Court calculates correct amount: AED 5,000
• Employer paid: AED 3,000
• Amount owed: AED 2,000
• Delay penalty (10%): AED 200
• Court orders: AED 2,200 + interest
• Timeline: 3–6 months

Scenario B: Employer Refused Payment

• Court calculates: AED 4,500
• Employer paid: AED 0
• Court awards: Full AED 4,500 + 10% penalty
• Total judgment: AED 4,950
• Timeline: 4–6 months

Scenario C: Deduction Dispute

• Calculated gratuity: AED 6,000
• Employer deducted: AED 1,500 (for "damages")
• Court reviews: Deduction not justified
• Court awards: AED 6,000 (full amount)
• Timeline: 5–8 months

Likely Court Decisions

Most cases court finds:

• ✅ Employee's calculation correct (80% of cases)
• ✅ Deductions unjustified (60% of cases)
• ✅ Interest owed (95% of cases)
• ✅ Additional 10% compensation for delay (70% of cases)

Courts rarely:

• ❌ Side completely with employer
• ❌ Award less than MOHRE formula

Appeal Process

If unsatisfied with court decision:

1. File appeal within 30 days
2. Appeal court reviews:
   • Calculation accuracy
   • Legal interpretation
   • Procedural fairness
3. Appeal takes another 3–6 months
4. Final decision is binding

Working with a Lawyer

Pros:

• Representation in court
• Expert guidance
• Better chance of maximum award

Cons:

• Cost (AED 2,000–10,000+)
• May not be necessary (courts familiar with gratuity cases)

Most employees win even without a lawyer (gratuity formula is straightforward).

Red Flags for Court Cases

⚠️ Employer destroys records → Court awards in your favor
⚠️ Multiple breaches → Court may award punitive damages
⚠️ Retaliation → Additional legal remedies

After Court Judgment

Employer must pay within:

• 30 days (typically)
• If delayed: 0.5% monthly interest
• Non-payment: Enforcement proceedings

If employer doesn't pay:

• File execution request
• Court orders employer assets seized
• Enforcement court collects

Success Rate

Gratuity court cases success:

• ✅ 85–90% of employees win (formula-based)
• ✅ Average award increase over MOHRE: 5–15%
• ✅ Average resolution: 4–6 months

Cost-Benefit Analysis

| Scenario | Worth Going to Court? | |----------|---| | Owed AED 500 | ❌ No (legal costs exceed amount) | | Owed AED 2,000–3,000 | ⚠️ Maybe (depends on case strength) | | Owed AED 5,000+ | ✅ Yes (legal fees justified) |

Tips for Court Success

✅ Organize documents chronologically
✅ Create calculation spreadsheet showing formula
✅ Get written quotes from employment lawyers
✅ Gather payslip evidence from early in employment
✅ Document all communication with employer
✅ Be prepared to wait 4–6 months for judgment

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

Disclaimer: Court procedures vary by emirate. Consult employment lawyer for specific advice.