Long-serving employees in the UAE are sometimes asked to sign documents that purport to waive or settle their end-of-service benefits before employment ends. A July 2025 judgment, in which Vishal Tinani led the case for the employee, is a reminder that such waivers may not hold.
The case in brief
The employee had worked for the same organisation from July 1996 until May 2023. After the dispute passed through the Ministry of Human Resources and Emiratisation, the court calculated gratuity from a verified final salary of Dh14,000 and awarded about Dh336,000.
- The court held that pre-termination waivers of end-of-service benefits are void.
- Claims for a Dh4,000 flight ticket and legal interest were rejected.
- The employee was ordered to repay Dh100,000 on a loan that was admitted — a reminder that set-offs cut both ways.
This protects employees’ rights and ensures they receive their full statutory entitlements.
Practical takeaways
For employees
- Keep payslips, contracts and salary certificates — the verified final salary drives the calculation.
- Do not assume a document you signed during employment has extinguished your rights.
- Disclose loans and advances early; courts will account for them.
For employers
- Budget for gratuity liabilities on long-tenure staff rather than relying on waivers.
- Make sure salary records are consistent across payroll, contracts and WPS data.
- Document any loans to employees with clear repayment terms.
Employment in the UAE is governed by Federal Decree-Law No. 33 of 2021. Every case turns on its facts, so take advice before signing any settlement.
This article is general information, not legal advice. Every matter depends on its facts — contact us for advice on your situation.
