Gratuity on the Death of an Employee in the UAE

When a worker dies, the end of service gratuity is not lost. Article 15 of the Labour Law deals with who receives the dues, within what period, and who pays to send the body home if the family asks.

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What is owed when a worker dies

A death is hard enough without a payroll question on top of it, so here is the position in plain terms. Under Federal Decree Law No. 33 of 2021, a contract ends on the death of the worker, or on their full permanent inability to work as shown by a medical certificate (Article 42). The money the worker had earned does not disappear.

Article 15(1) refers to the wages or financial entitlements due to the worker, in addition to the end of service benefits the worker was entitled to under the law. All of that can be handed to the family. So the unpaid salary, the pay for unused annual leave and the gratuity can all be part of what the family receives.

Who receives the money

Article 15(2) lets the worker name, in writing, the person in their family who should receive their rights in case of death. If your relative did that, the document matters. Ask the employer whether they hold such a nomination.

If there is no written nomination, the employer deals with the worker's family. We do not set out rules of inheritance here, because that depends on the worker's nationality, religion and family situation and on the courts. If the family and employer disagree about who should receive the money, or the family cannot be reached, Article 15(4) allows the Ministry, together with the authorities concerned, to set a mechanism to keep the worker's entitlements when they cannot be handed over.

The timing

Article 15(1) says the employer may hand over the entitlements to the worker's family within a period not exceeding 10 days from the date of death or from the date the employer became aware of it. That period is shorter than the 14 days in Article 53 that applies to ordinary payments at the end of a contract.

The word used is that the employer may hand over, within that period. If you are the family and nothing has been paid after ten days, ask for a written statement of what is owed and when it will be paid. If the employer does not engage, you can submit a request to MOHRE under Article 54.

Sending the body home

Article 15(3) is specific: the employer bears all the costs of preparing and transporting the body of the deceased worker to their home country or place of residence, if the family requests it. That is separate from gratuity and not deducted from it.

If a family is told to pay for repatriation of remains, they can ask the employer to explain the legal basis for charging them. The practical steps, documents and permits involved come from the police, the health authority, the embassy and the airline, and they change by emirate and by country. Ask the employer's HR team and your embassy for the current list rather than relying on a checklist from a forum.

If the death was caused by work

Article 37 sets out compensation for work injuries and occupational diseases. If the injury or disease led to death, the family is entitled to compensation equal to the worker's basic wage for 24 months. The amount cannot be less than AED 18,000 or more than AED 200,000. It is calculated on the basic wage the worker was receiving before death and is shared among the eligible beneficiaries under the Implementing Regulation.

Article 37(3) also says the family's rights in end of service benefits and other financial entitlements are preserved. In other words, work injury compensation does not replace gratuity. It comes in addition. Article 38 lists cases where the worker is not entitled to injury compensation, such as injury under the influence of alcohol or drugs, or from deliberate violation of posted safety instructions.

A worked illustration

This is an illustration of how the lines add up, not a statement about any real case. The compensation line only applies if the death meets the conditions in Articles 37 and 38.

What a family can do first

1. Ask the employer for a written list of what is owed: salary, leave pay, gratuity and any other entitlement.
2. Ask whether the worker named a recipient in writing under Article 15(2).
3. Ask who is paying for the repatriation of remains and get that in writing under Article 15(3).
4. Keep the contract, payslips, labour card, bank statements and any messages with the employer.
5. If the 10 day period passes without payment or a clear answer, submit a request to MOHRE.
6. Speak to your embassy. Consulates often help families with employer and legal questions.

A UAE qualified lawyer can help with inheritance and with a dispute over who receives the money. Do not sign any waiver that says all dues have been paid until you have received the money.

Important note

This guide is general information based on official sources and is not legal advice. Cases involving death raise inheritance, nationality and evidence questions. Please speak to MOHRE, your embassy or a UAE qualified lawyer.

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