Table of Contents
Topic Summary
1. Delayed Salary Payments
In the UAE, employees rely heavily on timely salary payments as their primary source of income. A delay, even if brief, can have significant financial repercussions, making it essential to address payment issues promptly through formal channels rather than informal discussions.
2. Discrepancies in Commission Calculations
Commission structures can be complex, and misunderstandings or errors in calculation often lead to disputes. Employers and employees should seek clear documentation and resolution processes to ensure commissions are computed accurately and transparently.
3. Inaccurate Leave Balances
Misalignment in leave entitlements or recorded balances can cause employee dissatisfaction. It is imperative for organisations to maintain precise leave records and rectify any discrepancies through formal HR procedures to maintain trust and compliance.
4. Hasty Termination Decisions
Terminations made abruptly, particularly during peak operational periods, may not only be unfair but could also lead to legal consequences. Such decisions should follow due process, including thorough review and documented justification, to protect both parties involved.
5. The Importance of Formal Employment Dispute Resolution
Given that expatriates constitute approximately 88.5% of the UAE’s population and employment is intrinsically linked to livelihood, even minor employment grievances should not be dismissed as internal matters. Formal mechanisms and legal frameworks must be utilised to address conflicts effectively and uphold employees’ rights.
In the UAE, employment problems rarely start as legal disputes. They usually begin with something small: a salary processed late, a commission that wasn’t calculated the way the employee expected, leave balances that don’t match, or a termination decision made quickly during a busy period. These situations shouldn’t be treated as internal HR matters that can be resolved informally. With expatriates making up around 88.5% of the UAE’s population, employment is closely tied to both income and residency, so employees tend to escalate quickly when pay or job security is affected.
Once that escalation happens, the issue moves into a system that is active and structured. The UAE’s employee grievance procedure is regulated by the Ministry of Human Resources and Emiratisation (MOHRE), which handled more than 17,000 labour complaints in 2025, linked to salary disputes, end-of-service benefits, and termination. Under UAE Labour Law, complaints go through formal mediation and, if unresolved, are referred to the labour courts. At that stage, outcomes depend on documentation, contracts, payroll records, and written communication, not internal explanations.
For businesses operating in the UAE, grievance management is not just about employee relations. It is a compliance function that affects cost exposure, visa timelines, operational continuity, and legal risk.
What Qualifies as an Employee Grievance in the UAE
Most complaints raised through the system fall into a small number of operational categories.
Common grievances include:
- Unpaid or delayed salary
- Incorrect overtime, commission, or incentive payments
- Disputes over annual leave or unpaid leave balances
- End-of-service benefit calculations
- Contract changes without employee consent
- Termination or notice period disputes
- Arbitrary dismissal claims
From a founder’s perspective, any issue involving pay, contract terms, or termination should be treated as a potential formal case.
The Legal Framework Behind the Employee Grievance Procedure
The grievance process is governed by Federal Decree Law No. 33 of 2021 and administered by MOHRE for private-sector employees.
Key structural realities:
- Employees can file complaints directly with MOHRE via app, call centre, or service centre
- Employers are legally required to participate in the process
- Wage disputes may trigger a Wage Protection System (WPS) review
- Mediation is mandatory before any court escalation
Once a complaint is registered, the matter moves into a government-managed workflow. Internal company policies do not override the legal process.
Internal Resolution: What Employers Should Have In Place
The law does not require a formal internal grievance system, but internal handling determines how the case is viewed externally.
Operational controls that matter:
- Written employment contracts aligned with actual pay and role
- Accurate WPS salary payments
- Documented leave balances and approvals
- Written warnings or performance records
- Email or written communication relating to disputes
- A clear internal escalation channel
Most cases are decided based on documents, not verbal explanations. Missing records weaken the employer’s position before mediation begins.
The UAE Employee Grievance Procedure Explained
Once a complaint is filed, the issue moves out of internal company control and into a regulated workflow. The UAE’s employee grievance procedure is designed to resolve disputes quickly through mediation, with court involvement only if settlement fails. For employers, the process is structured, time-sensitive, and driven by documentation.
Step 1: Complaint Registration
The employee submits a complaint through MOHRE’s app, website, call centre, or a Tasheel service centre. The case is logged against the employer’s labour file, and the employer is notified to respond.
For salary-related complaints, MOHRE may review Wage Protection System (WPS) records to verify payment history.
Step 2: Case Review
A labour relations officer reviews the complaint and contacts both parties to understand the issue. Employers may be asked to provide supporting documents such as employment contracts, payroll records, leave balances, or termination details.
Early responses and complete documentation can significantly influence the direction of the case.
Step 3: Mediation
MOHRE schedules a mediation session by phone, online, or in person. Both employer and employee present their position, and the officer proposes a settlement based on Labour Law provisions.
If both parties agree, the settlement is recorded and becomes legally binding.
Step 4: Court Referral
If the dispute is not resolved within approximately 14 days, MOHRE issues a referral letter and transfers the case to the Labour Court. At this stage, the matter becomes a formal legal dispute, with hearings and a court-issued judgement.
Step 5: Resolution and Enforcement
Once a court decision or settlement is issued, both parties are required to comply. Any outstanding payments, compensation, or final settlement must be completed before the case is closed.
During the grievance process, operational actions such as visa cancellation, employee transfer, or replacement hiring may be delayed. In practice, outcomes depend on whether employment contracts, payroll records, and internal decisions are properly documented.
Financial And Operational Risks For Employers
The claim amount is rarely the full cost. The disruption is what drains time and focus.
Here are some typical exposure points:
- Court-ordered salary, notice pay, or contractual compensation
- Arbitrary dismissal compensation of up to three months’ salary under the labour law framework
- Administrative fines for labour violations, including wage-related non-compliance
- WPS non-compliance penalties and follow-on restrictions
- Legal, translation, and document preparation costs
- Delays in visa cancellation or replacement hiring
- Potential changes to company risk classification and increased scrutiny
Arbitrary Dismissal: A Common Escalation Trigger
Termination decisions carry the highest risk within the grievance cycle.
An employee may claim arbitrary dismissal if:
- The termination lacks a valid reason
- Notice periods are not honoured
- End-of-service benefits are disputed
- No performance or misconduct documentation exists
Verbal warnings or informal discussions carry little weight. Employers must show written evidence of performance issues, misconduct, or legitimate business restructuring.
Managing Grievance Risk
In the UAE, most grievance exposure comes from small operational decisions that were never formalised. A common example is a salary increase agreed verbally but never updated in the employment contract. If the employee later files a complaint, MOHRE will rely on the signed contract and WPS records, not the internal understanding.
If an incentive structure is adjusted but not documented and signed, any dispute is assessed against the original terms. Leave balances are another frequent trigger, especially when approvals were given informally but never recorded.
Termination is where these gaps become costly. Exiting an underperforming employee without written warnings or performance records can lead to an arbitrary dismissal claim, with compensation of up to three months’ salary.
In practice, the protection against grievance risk comes down to operational discipline. The controls that matter most are simple, but they need to be applied consistently:
- Treat payroll accuracy as a compliance function, ensuring WPS payments match the signed contract
- Update employment contracts whenever salary, incentives, role, or responsibilities change
- Avoid informal salary adjustments, side agreements, or verbal commitments
- Document performance concerns early with written warnings or review records
- Keep leave approvals, commission structures, and employee communications on record
- Address and resolve disputes before issuing a termination where possible
In Meydan Free Zone, employment contracts, visa processing, and records are managed through a digital system. Because the UAE grievance process is documentation-driven, having accurate and accessible records can materially affect both the speed and the outcome of dispute resolution.
In Conclusion
Employee grievances in the UAE rarely escalate because of the issue itself. They escalate when everyday decisions, payroll changes, role adjustments, leave approvals, or termination actions are handled informally and leave no clear record.
The employee grievance procedure is structured and evidence-driven. Once a complaint is filed, the focus shifts from explanation to documentation: contracts, WPS records, payment history, and written communication.
For founders and SMEs, the priority is operational discipline. Accurate payroll, updated contracts, and consistent records reduce financial exposure, protect visa timelines, and help maintain business continuity.
Frequently Asked Questions
1. What is the employee grievance procedure in the UAE?
The employee grievance procedure is a formal process managed by MOHRE to resolve workplace disputes. Employees can file a complaint if issues such as unpaid salary, termination disagreements, or benefit disputes are not resolved internally. The case goes through mediation first, and if no agreement is reached, it may be referred to the Labour Court.
2. Can an employee file a complaint without informing the employer first?
Yes. Employees can approach MOHRE directly through the app, call centre, or a service centre. In practice, many complaints are filed without prior formal notice to the employer, which is why internal documentation and payroll accuracy are critical at all times.
3. How long does the grievance process take?
MOHRE typically initiates mediation within a few days of the complaint. If the issue is not resolved within about 14 days, the case is referred to the Labour Court, where timelines depend on the complexity of the dispute and the court schedule.
4. What types of issues are most commonly reported to MOHRE?
Most complaints relate to salary delays, unpaid dues, end-of-service benefits, and termination disputes. Issues involving commission, leave balances, or contract changes can also escalate if they are not properly documented.
5. What happens if the employer does not respond to a MOHRE complaint?
Failure to respond can weaken the employer’s position and may lead to the case being escalated quickly to court. MOHRE decisions and court outcomes are based on available records, so delayed or incomplete responses increase compliance risk.
6. Can a visa be cancelled while a grievance is ongoing?
In most cases, visa cancellation, employee transfer, and final settlement cannot be completed until the dispute is resolved. This can delay replacement hiring and affect operational planning if the role remains legally active.
7. What documents should employers keep to protect themselves in a dispute?
Employers should maintain signed employment contracts, WPS salary records, leave and attendance records, written performance warnings, and documented communication related to any changes or disputes. In the UAE system, decisions are based on evidence, not verbal agreements.
