Employment relationships in the UAE are governed by Federal Decree-Law No. 33/2021 on Regulation of Labour Relations, with implementing regulations provided by Cabinet Decision No. 1/2022. This article explores the legal grounds for an employee to sue a company for failing to compensate additional expenses.

Legal Framework:

In the UAE, labour law outlines the foundation of the employer-employee relationship through the employment contract. As per Article 8, the employer is obligated to construct an employment contract with the worker, specifying terms such as remuneration and other entitlements. The contract can be for a fixed term, renewable as agreed by both parties.

In cases of employment contract extension or renewal, the new period is considered an extension of the original, impacting the calculation of the worker’s continuous service. Article 8, along with Cabinet Decision No. 1/2022, Article 10, mandates that the employment contract should include essential details such as the employer’s name and address, worker’s details, job specifics, wage, benefits, annual leave entitlements, and termination procedures. Additionally, any changes to the contract, such as work patterns, require mutual agreement, adherence to procedures, and settlement of all entitlements from the previous contract.

The amount or type of remuneration is an essential provision of the employment contract. Additionally, Article 22 mandates that remuneration should be specified in the employment contract. In the absence of such specification, the competent court will determine it as a labour dispute. Employers are required to pay remuneration in accordance with regulations and conditions specified in the Implementing Regulation of the Decree-Law.

According to Article 54, if an employer fails to compensate additional expenses or breaches any rights stipulated in the Decree-Law, the employee may submit a request to the Ministry of Human Resources and Emiratisation (MoHRE). MoHRE has the authority to settle disputes amicably. If no resolution is reached, MoHRE may issue a final decision for disputes with a value not exceeding AED 50,000. The employee may file a lawsuit before the competent Court of Appeal within 15 working days from the date of notification of MoHRE’s decision.

As per Article 55, labour cases are exempted from judicial fees, providing financial relief for workers pursuing their rights through legal channels. Similar to Article 54, under Cabinet Decision No. 1/2022, Article 31 of the Implementing Regulation outlines the process for settling individual labour disputes. MoHRE is involved in amicable settlements, and if resolution is not possible, the dispute is referred to the competent court within 14 days.


Employees in the UAE are protected by comprehensive labour law. The legal framework emphasizes the significance of fair and transparent employment relationships, with mechanisms in place to address disputes and ensure timely compensation for affected parties.


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