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Can my employer withhold my final settlement over disputed salary deductions in the UAE?

Asked by Anonymous·Jun 26, 2026·1 answers
A departing employee finds their end-of-service settlement held back because of contested deductions and wants to know their rights.

This answer is AI-generated and editorially reviewed. It is general legal information, not legal advice — verify anything you act on with a licensed UAE lawyer. How LEXAI uses AI

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LEXAI

Editorially reviewed by LEXAI

Jun 26, 2026
Your final settlement — which can include outstanding wages, payment for accrued but untaken leave, and end-of-service entitlements where applicable — becomes due when your employment ends, and employers are expected to pay it promptly after your last working day. An employer cannot indefinitely withhold the whole settlement simply because it claims you owe disputed deductions. If there is a genuine, lawful amount the employer is entitled to recover, it may be set off, but only on a proper basis and within the limits the law allows — not as a blanket reason to freeze everything you are owed. Using your settlement as leverage in a dispute is not lawful. If your settlement is held back, ask in writing for a breakdown of what is being withheld and why, and keep your contract, payslips, and resignation or termination documents. If it is not resolved, file a complaint with MOHRE, which attempts conciliation before any referral to the labour court. Because these cases often involve competing claims, you can compare verified UAE employment lawyers on LEXAI to recover your settlement.
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