What to Expect if Your Gratuity Case Goes to Court
TL;DR: UAE labour court resolves gratuity disputes in 3-12 months when MOHRE mediation fails, requiring filing fees (AED 100-300) and documented evidence. Courts independently verify calculations, award 10% delay penalties, and issue binding judgments enforceable through asset seizure, with 85-90% employee success rate in formula-based disputes.
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
- Reviews MOHRE investigation (if appealing)
- Independently calculates gratuity using MOHRE formula
- Assesses deduction legality
- Determines correct amount owed
- Awards damages for delay (typically 10%)
- 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:
- File appeal within 30 days
- Appeal court reviews:
- Calculation accuracy
- Legal interpretation
- Procedural fairness
- Appeal takes another 3–6 months
- 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.
