In the bustling job market of Dubai and the wider UAE, understanding your rights as an employee is crucial. One area that often leads to confusion is the matter of commission payments and end-of-service benefits. This comprehensive guide aims to shed light on these important aspects of employment law in the UAE, helping you navigate your rights and entitlements.

The One-Year Rule: Commission Claims in the UAE

Many employees in Dubai work on commission-based structures, particularly in sales and real estate sectors. But what happens if your employer fails to pay your commission? Can you still claim it after a significant period has passed?

According to UAE labour laws, there’s a crucial time limit you need to be aware of. Generally, you cannot claim any labour rights that are more than one year old. This includes commission payments that have been pending for over 12 months.

However, it’s important to note that all rights less than a year old are still due to you. This means if you have unpaid commissions from the past 11 months, you’re well within your rights to claim them.

Key Takeaways on Commission Claims:

  • Claims for labour rights, including commissions, have a one-year limitation period
  • Any unpaid commissions within the last 12 months can be legally claimed
  • Employers cannot refuse to pay commissions that are less than a year old

Calculating End-of-Service Benefits for Commission-Based Employees

End-of-service benefits are a crucial part of employment packages in the UAE. But how are these calculated for employees who work on commission?

The UAE Labour Law No. 33 of 2021 provides clear guidelines on this matter. For commission-based workers, end-of-service benefits, including annual leave salary, are calculated based on the average amount the worker received for actual working days during the six months preceding the claim.

Step-by-Step Calculation Process:

  1. Identify the total commission earned in the last six months
  2. Count the number of actual working days in this period
  3. Divide the total commission by the number of working days to get the daily average
  4. Use this daily average as the basis for calculating end-of-service benefits

This method ensures that commission-based employees receive fair end-of-service benefits that accurately reflect their earnings.

Annual Leave Allowance: Your Rights Explained

Another common question among employees in Dubai relates to annual leave allowances. The UAE Labour Law is clear on this matter as well.

According to Article 29 of Labour Law No. 33 of 2021, employees are entitled to wages for accrued leave days, even if they quit work before using them. This applies regardless of the duration of the leave.

Key Points on Annual Leave Allowance:

  • You’re entitled to payment for unused leave days when you leave your job
  • This right applies to leave accrued during your entire employment period
  • You can claim leave wages for partial years, proportionate to the time worked

It’s worth noting that you can claim annual leave allowance for up to two years, provided you make the claim within the one-year limitation period mentioned earlier.

Protecting Your Rights: Steps to Take

If you find yourself in a situation where your employer is withholding commissions or disputing your end-of-service benefits, there are steps you can take:

  1. Document Everything: Keep detailed records of your work, commissions earned, and any communication with your employer regarding payments.
  2. Know the Law: Familiarise yourself with the UAE Labour Law, particularly the sections relating to wage payments and end-of-service benefits.
  3. Communicate Clearly: Raise your concerns with your employer in writing, clearly stating your claim and the legal basis for it.
  4. Seek Professional Advice: If the issue persists, consider consulting with a labour law expert or the UAE Ministry of Human Resources and Emiratisation.
  5. Act Promptly: Remember the one-year limitation period and ensure you file any claims within this timeframe.

Conclusion: Empowering Employees in the UAE Job Market

Understanding your rights regarding commissions, end-of-service benefits, and annual leave allowances is crucial for every employee in the UAE. By staying informed and proactive, you can ensure you receive the compensation and benefits you’re entitled to under UAE law.

Remember, the UAE labour laws are designed to protect both employers and employees. By adhering to these laws and understanding your rights, you can navigate your career in Dubai and the UAE with confidence and security.


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