Employee Benefits & End-of-Service Claims in the UAE

Our associate legal team assists UAE-based employers with the design, implementation, and compliance review of employee benefit arrangements, including end of service gratuity calculations, pension arrangements for GCC national employees, and workplace savings schemes such as the DIFC Employee Workplace Savings (DEWS) plan for employers operating within the DIFC.

Employee benefits in the UAE operate under a different framework than in many other jurisdictions. Rather than the tax-advantaged retirement plans common in some countries, UAE employers generally structure benefits around the end of service gratuity required under UAE Labour Law, mandatory health insurance obligations, and, for GCC national employees, contributions to the relevant government pension and social security authority.

Our associate team helps employers understand and structure these obligations correctly, and helps employees resolve disputes when benefits are not paid correctly.

Areas of Focus:

End of Service Gratuity and Pension Arrangements:

Employee Benefit Services We Assist With

Advising employers on end of service gratuity calculation and compliance. Reviewing and drafting employee benefit and compensation policies. Advising on health insurance obligations under Dubai and Abu Dhabi insurance regulations. Advising on pension and social security contribution obligations for GCC national employees. Assisting employers with DIFC Employee Workplace Savings (DEWS) plan compliance for DIFC-registered entities. Reviewing bonus, incentive, and equity-based compensation arrangements for compliance with UAE employment regulations.

Equity and Incentive Compensation:

Equity and Incentive Compensation

Some UAE employers, particularly multinational groups and free zone companies, offer equity-based or incentive compensation arrangements to senior staff. Our associate legal team can advise on structuring these arrangements in a way that is compatible with UAE employment law and the specific free zone or mainland regulatory framework that applies to the employer.

Workplace Savings Schemes (including DEWS):

Workplace Savings and Retirement Arrangements

For employers registered within the DIFC, the DEWS scheme replaced the traditional end of service gratuity with a defined contribution savings plan, and our associate team can advise on registration and ongoing compliance obligations under that scheme. Employers outside the DIFC generally remain subject to the standard end of service gratuity requirements under UAE Labour Law.

Health Insurance and Welfare Benefits:

Health Insurance and Welfare Benefits

Employers in Dubai and Abu Dhabi are required to provide health insurance coverage to their employees under the respective Emirate’s health insurance regulations. Our associate team can advise employers on meeting these obligations, as well as on structuring additional welfare benefits such as allowances, leave policies, and other employee welfare arrangements in compliance with UAE Labour Law.

Employee Benefit Disputes:

Employee Benefit Disputes

Our associate legal team also assists employees who believe their end of service gratuity, health insurance entitlement, or other benefits have not been paid or provided correctly, helping to pursue the matter with the employer directly or, where necessary, through the Ministry of Human Resources and Emiratisation or the relevant labour court.

Frequently Asked Questions: Employee Benefits in the UAE

What is end of service gratuity?

End of service gratuity is a benefit payable to eligible employees at the end of their employment under UAE Labour Law, calculated based on length of service and final salary.

Is health insurance mandatory for employees in the UAE?

Yes, employers in Dubai and Abu Dhabi are required to provide health insurance coverage to their employees under the respective Emirate’s regulations.

What is the DEWS scheme?

DEWS is the DIFC Employee Workplace Savings scheme, a defined contribution savings plan that replaced the end of service gratuity for employers registered within the DIFC.

Do GCC national employees receive different benefits than other employees?

Yes, GCC national employees are generally covered by their home country’s pension and social security scheme rather than the standard end of service gratuity.

Can an employee dispute their end of service gratuity calculation?

Yes, our associate legal team can review the calculation and assist with pursuing a dispute if the amount paid does not match what is owed under UAE Labour Law.

What happens if an employer does not provide required health insurance?

Employees can raise this with the relevant health authority or Ministry of Human Resources and Emiratisation, and our associate team can advise on the appropriate steps.

Can employers offer equity compensation to employees in the UAE?

Yes, though it needs to be structured in compliance with UAE employment law and the specific regulatory framework of the employer’s free zone or mainland jurisdiction.

Do part-time or temporary employees receive end of service gratuity?

Entitlement depends on the specific employment contract terms and applicable UAE Labour Law provisions; our associate team can assess individual cases.

Can our team help draft an employee benefits policy?

Yes, our associate legal team can assist employers with drafting and reviewing employee benefit and compensation policies compliant with UAE regulations.

What is the Wage Protection System?

The Wage Protection System is a UAE electronic salary payment monitoring system designed to ensure employees are paid on time and in accordance with their contracts.

Can disputes over bonuses or incentive pay be pursued?

Yes, disputes over unpaid or miscalculated bonus and incentive compensation can be reviewed and pursued by our associate legal team.

Are UAE employee benefits the same across all free zones?

No, some free zones, such as the DIFC, have their own specific benefit schemes like DEWS, while others follow the standard UAE Labour Law framework.

Can foreign employees pursue an employee benefits claim after leaving the UAE?

This depends on the specific circumstances and timing; our associate team can advise on whether a claim can still be pursued.

Does this service help both employees and employers?

Yes, our associate legal team advises employers on compliance and structuring, and assists employees in pursuing unpaid or disputed benefits.

How do I start an employee benefits case with your team?

Employee Benefits: Overview in Other Languages

English

Our associate team advises UAE employers and employees on end of service gratuity, health insurance obligations, and workplace savings schemes such as DEWS.

Arabic (العربية)

يقدم فريقنا المعتمد المشورة لأصحاب العمل والموظفين في دولة الإمارات بشأن مكافأة نهاية الخدمة والتزامات التأمين الصحي وخطط الادخار الوظيفية مثل نظام DEWS.

French (Francais)

Notre equipe associee conseille les employeurs et les employes aux Emirats sur l indemnite de fin de service, les obligations d assurance maladie et les regimes d epargne salariale comme le DEWS.

German (Deutsch)

Unser assoziiertes Team beraet Arbeitgeber und Arbeitnehmer in den VAE zu Abfindungen, Krankenversicherungspflichten und betrieblichen Sparplaenen wie DEWS.

Spanish (Espanol)

Nuestro equipo asociado asesora a empleadores y empleados en los Emiratos sobre la indemnizacion por fin de servicio, las obligaciones de seguro de salud y los planes de ahorro laboral como el DEWS.

Russian (Русский)

Наша партнерская команда консультирует работодателей и работников в ОАЭ по выходным пособиям, обязательствам по медицинскому страхованию и накопительным программам, таким как DEWS.

Chinese (中文)

我们的合作团队就离职补偿金、健康保险义务及DEWS等职场储蓄计划,为阿联酋雇主和员工提供建议。

Italian (Italiano)

Il nostro team associato consiglia datori di lavoro e dipendenti negli Emirati su indennita di fine servizio, obblighi assicurativi sanitari e piani di risparmio come il DEWS.

Portuguese (Portugues)

Nossa equipe associada aconselha empregadores e empregados nos Emirados sobre indenizacao por fim de servico, obrigacoes de seguro saude e planos de poupanca como o DEWS.

Czech (Cestina)

Nas spolupracujici tym radi zamestnavatelum a zamestnancum ve Spojenych arabskych emiratech ohledne odstupneho, povinnosti zdravotniho pojisteni a sporicich planu jako DEWS.

Filipino

Ang aming kasosyong koponan ay nagpapayo sa mga employer at empleyado sa UAE ukol sa end of service gratuity, obligasyon sa health insurance, at mga workplace savings scheme tulad ng DEWS.

Swahili (representative African language)

Timu yetu washirika hushauri waajiri na wafanyakazi katika UAE kuhusu malipo ya mwisho wa huduma, wajibu wa bima ya afya, na mipango ya akiba ya mahali pa kazi kama DEWS.

Employee Benefit — Official Sources and Further Reading

Debt recovery and litigation in the United Arab Emirates run through official channels. The government and court resources below are the primary references for the procedures described on this page:

UAE Ministry of Justice — the register of licensed advocates and legal consultants.
the UAE Government official portal — official summaries of UAE law for individuals and businesses.
Abu Dhabi Judicial Department — court services, mediation and enforcement in Abu Dhabi.

Employee Benefits & End-of-Service Claims in the UAE