UAE's Two-Year Labour Claims Rule: Understanding Your Commission Rights

Key Takeaways

• UAE labour law is governed by Federal Decree-Law No. 33 of 2021
• Employees and employers both have specific rights and obligations under the law
• MOHRE handles labour disputes and can be contacted for complaints
• Understanding your rights is essential for a fair working relationship

Employee Wins First Instance Ruling, But Company Appeals Citing Time LimitationLast updated: October 27, 2025 | By UAE Labour Law TeamQuestion: I filed a case against my company because they refused to pay me the commission for a deal that was completed and closed in 2022. The First Instance Court awarded me the claimed amount. The company has now appealed the judgment, claiming that I am not entitled

to the commission due to the passage of more than two years. Is the company correct in this claim?Answer: The company's appeal centers on Article 54(9) of Federal Decree-Law No. 33 of 2021, as amended by Federal Decree-Law No. 9 of 2024, which states that "litigation concerning any rights accrued under this Decree-Law may not be considered after two years from the date of termination of employment."This

two-year limitation rule represents a significant extension from the previous one-year limitation period. The amendment, which came into effect on August 31, 2024, fundamentally changed how long employees can pursue unpaid entitlements, including commissions, after their employment ends.Understanding the Two-Year Limitation DefenseThe plea that a labour claim cannot be heard after two years from employment

termination is classified as a substantive defense under UAE law. This classification carries important procedural implications:Key aspects of the two-year rule:It can be raised at any stage of the proceedings, including for the first time during the appeal processThe defense remains valid unless the employer has explicitly or implicitly waived this rightCourts must examine this defense when properly

raised by either partyLabour Cassation Court Ruling No. 146/2024, dated December 17, 2024, established crucial precedent on how courts must handle this defense. The Cassation Court ruled: "It was established that the appellant adhered to the defense of inadmissibility of the case and had not waived it explicitly or implicitly, as the company submitted to the court that the original case should not

be heard regarding the commission due to the passage of time. If true, this would affect the court's decision. The contested ruling ignored this argument, did not examine it, and issued its judgment regarding the commission without addressing it. Therefore, the ruling is flawed due to lack of reasoning and a violation of the appellant's right to defense, necessitating its annulment."When Does the

Two-Year Period Start?The critical question in commission disputes is determining when the two-year limitation period begins. Based on established case law, the limitation period for commission claims begins when the right becomes "capable of being exercised."For commission payments:The limitation period starts when company profits are officially announcedNot when the financial year endsNot when the

deal closesOnly when the commission amount can be calculated and determinedThis principle protects employees from having to file premature claims before they can accurate...

About This Article

This article provides general information about UAE labour law and employment regulations. The information is based on Federal Decree-Law No. 33 of 2021 and subsequent amendments. For specific legal advice regarding your situation, please consult with a qualified legal professional or contact the Ministry of Human Resources and Emiratisation (MOHRE).