Can my employer deduct money from my gratuity or final settlement in the UAE?

An employer in the UAE can make only lawful, justified deductions from your gratuity or final settlement — not arbitrary ones. Under the UAE Labour Law (Federal Decree-Law No. 33 of 2021), administered by MOHRE, deductions are restricted to specific, legitimate categories, such as amounts you genuinely owe the employer (for example, a documented advance or loan you agreed to repay), recovery of overpaid wages, or other liabilities permitted by law. Deductions must be properly justified and generally cannot exceed limits set by the regulations. Your employer cannot simply withhold or shrink your gratuity as a penalty for resigning, for joining a competitor, or out of dissatisfaction. Your end-of-service gratuity itself is calculated on basic wage at 21 days per year for the first five years and 30 days thereafter, capped at two years' wages, before any lawful deduction. If your employer applies deductions you do not recognise or refuses to explain them, ask for an itemised breakdown, then file a complaint with MOHRE if it is not resolved. For a contested deduction, you can compare verified UAE employment lawyers on LEXAI.