The Preservation of Employees’ Entitlements Upon Death: Legal Obligations and Best Practices in the UAE

In the United Arab Emirates (UAE), the protection of employees’ rights is a cornerstone of labour legislation, particularly in sensitive circumstances such as the death of an employee. UAE Labour Law and related regulations outline the procedures and obligations for settling dues and entitlements when an employee passes away in service. These laws seek to uphold the dignity of the deceased while safeguarding the financial security of their dependents or heirs.

 

Statutory Framework and Immediate Employer Obligations

The UAE Labour Law mandates:
“In the event of the worker’s death, the employer shall pay the wage and other entitlements to the worker’s family within a period not exceeding ten (10) days from the date of death.”

 

This strict ten-day deadline is not a formality but a binding legal duty. Non-compliance can lead to administrative penalties or litigation. The rule underscores the importance of swift action to maintain financial stability for the deceased’s family.

 

Entitlements Payable Upon Death

When an employee dies during employment, several categories of dues become payable:

 

1. Final Salary and Accrued Payments
   All outstanding salary must be settled, including unpaid basic pay, overtime, commissions, or incentives earned.

2. End-of-Service Gratuity
   The estate is entitled to gratuity in accordance with Article 51 of the Labour Law:

   • 21 days’ basic salary per year for the first five years of service;

     • 30 days’ basic salary for each subsequent year.
       Even employees who die during probation or without completing a full year of service may be entitled to partial benefits, depending on the contract.

3. Unused Annual Leave
   Any accrued but unused leave must be compensated at the employee’s last drawn basic salary.

4. Contractual or Statutory Benefits
   Employers must honour any additional benefits under contract or company policy, such as performance bonuses, education allowances, pension contributions, or unclaimed travel tickets.

5. Repatriation and Funeral Costs (for Expatriates)
   Employers are generally responsible for the repatriation of the body unless the family requests otherwise. Where policies or contracts specify repatriation, these must be followed. Some employers also provide ex gratia contributions toward funeral expenses, though not required by law.

 

Identifying and Paying Legal Beneficiaries

Determining rightful beneficiaries is central to compliance. Under UAE Labour Law, entitlements must be paid to the employee’s family, defined as:

 

• For Muslims: heirs under Sharia principles;

• For non-Muslims: heirs under the succession laws of their home country, where applicable.

 

Beneficiaries must typically present a succession certificate or court order. Employers should not release funds without formal documentation and may instead deposit dues with the labour court for judicial distribution. Coordination with:

 

• The Ministry of Human Resources and Emiratisation (MoHRE),

• The relevant embassy or consulate, or

• UAE courts is often required.

 

Administrative Compliance and Recordkeeping

Employers should maintain meticulous records of:

 

• Contracts, salary structures, and leave balances;

• Beneficiary details (if designated).

 

Practical steps include promptly notifying authorities, liaising with family or consular representatives, engaging legal counsel, and ensuring data privacy when handling sensitive information.

 

Practical Guidance for Employers

• Show Empathy: Assign a senior HR or legal representative to support the family.

• Avoid Informality: Never release entitlements on verbal claims; insist on court-verified proof.

• Consult Authorities: Seek guidance from MoHRE or courts in complex situations.

 

Conclusion

In the UAE, the death of an employee triggers a clear legal process to protect the rights of both the deceased and their heirs. Employers must balance strict compliance with empathy, ensuring that settlements are handled with speed, fairness, and dignity. Ultimately, the measure of a responsible employer lies not only in how it treats employees in life, but also in how it honours their rights after death.