UAE labour authorities have outlined the statutory circumstances where employers are permitted to deduct wages under federal labour law. Lawful deductions include approved savings fund subscriptions, disciplinary penalties, excess wage recovery, and court-ordered debt settlements. The guidance aims to assist private-sector employers and payroll teams in maintaining statutory compliance.
Under Article 13, Clause 11 of Federal Decree-Law No. 33 of 2021, UAE employers must provide departing employees with an experience certificate free of charge upon request. The document must detail start and end dates, service duration, job title, last salary, and termination reason, without including statements that could harm the worker's reputation. Employees can obtain the document from their employer or download an official digital certificate valid for one month via the Ministry of Human Resources and Emiratisation app.
The UAE Ministry of Human Resources and Emiratisation has issued an advisory detailing conditions for cash compensation under the Involuntary Loss of Employment scheme. Qualified public and private sector workers can claim up to AED 20,000 per month for up to three months. Entitlement requires 12 consecutive months of contributions, submission within 30 days of dismissal, and clean disciplinary records.
Employees in the UAE who face job loss must satisfy specific statutory conditions to receive compensation under the Involuntary Loss of Employment (ILOE) scheme. Regulated by the Ministry of Human Resources and Emiratisation, the scheme requires claimants to have subscribed for at least 12 consecutive months and submit claims within 30 days of termination. Payouts provide up to 60 percent of the average basic salary for up to three months.
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