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UAE: Can an employer refuse to pay salary during dispute with employee?

An employer should pay the salary to an employee on the due dates and in accordance with the amount agreed in an employment contract

Question: I have a dispute with my employer and the court is hearing our case. But the employer has not paid my 2-month salary even though I continued working full-time with the company. Is the employer liable to pay my salary during the dispute and court hearing? Can I file a case against the employer for not paying my 2-month salary?

Answer: It is assumed that your claim amount with your employer is more than Dh50,000, therefore, the provisions of UAE employment law and its subsequent amendment are applicable.

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In the UAE, an employer should pay the salary to an employee on the due dates and in accordance with the amount agreed in an employment contract and in accordance with the regulations approved by the Ministry of Human Resources and Emiratisation (MoHRE). This is in accordance with Article 22 of the Federal Decree Law no. 33 of 2021 'Regarding the Regulation of Employment Relationships' and its amendments, “The employer shall pay the salaries or wages to its workers on their due dates in accordance with the regulations approved in the Ministry, as well as the conditions, rules and procedures specified by the Implementing Regulation hereof”.

Furthermore, in case of a dispute between an employer and an employee, upon receipt of the complaint, initially MoHRE may attempt to amicably settle the dispute. However, a dispute may be referred to the competent court if there is no amicable settlement within the time limit prescribed by MoHRE. This is in accordance with Article 1(4) of the Federal Decree Law no. (20) of 2023 'Amending certain Provisions of Federal Decree-Law no. (33) of 2021 Regarding the Regulation of Employment Relationships':

“The dispute shall be referred to the competent court if attempts to reach an amicable settlement within the time limit prescribed in the implementing regulation of this Decree-Law and in cases other than those described in paragraph (2) of this article do not succeed. This should be accompanied by a memorandum which summarises the dispute, the parties' arguments, in addition to the Ministry's recommendations.”

Furthermore, during a dispute resolution process, if the employee's salary is withheld, the MoHRE may call upon an employer to pay the employee their salary for up to two months. This is in accordance with Article 1(5) of the Amendment to certain 'Provisions of Employment Law’:

“As part of the dispute resolution process, the Ministry may order the employer to provide the employee’s salary for a maximum of two (2) months, if the dispute results in the employee’s salary being withheld.”

In conclusion, while there is an ongoing court case between you and your employer, you are entitled to receive your salary during the ongoing proceedings if you continue to be employed by your employer. Additionally, if the dispute remains unresolved and you continue working, you can claim two months' remuneration.

Ashish Mehta is the founder and Managing Partner of Ashish Mehta & Associates. He is qualified to practise law in Dubai, the United Kingdom and India. Full details of his firm on: www.amalawyers.com. Readers may e-mail their questions to: news@khaleejtimes.com or send them to Legal View, Khaleej Times, PO Box 11243, Dubai.

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