How Long Can You Claim Unpaid Commissions in the UAE?
Learn how long you can claim unpaid commissions in UAE. Discover the one-year rule, end-of-service calculations, and legal rights for commission workers.
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
You can claim unpaid commissions in the UAE for up to one year from when they became due. However, any commission payments older than 12 months cannot be legally claimed under UAE labour law, making timely action crucial for protecting your earnings.Commission-based employees in Dubai and across the UAE often face delays in payment, particularly in sales and real estate sectors. Understanding your
legal rights and time limitations protects you from financial losses and employer disputes.What is the One-Year Rule for Commission Claims?UAE labour law establishes a strict one-year limitation period for claiming unpaid commissions and other labour rights. This means you cannot pursue legal action for commission payments that have been outstanding for more than 12 months from their due date.Key
Time Limitation Facts:Within 12 months: All unpaid commissions can be legally claimedAfter 12 months: Commission claims become time-barred and unenforceableCalculation starts: From the date the commission payment was originally dueThis rule applies to all commission-based workers regardless of industry or employment level, making prompt action essential when employers withhold payments.How Are End-of-Service
Benefits Calculated for Commission Workers?Commission-based employees receive end-of-service benefits calculated differently from fixed-salary workers. According to UAE Labour Law No. 33 of 2021, these benefits use your average commission earnings over a specific period.Calculation Method Under Article 29:The calculation uses the average amount received for actual working days during the six months
preceding your claim or termination.Step-by-Step Calculation Process:Total commission earned in the last six months of employmentCount actual working days during this six-month periodCalculate daily average by dividing total commission by working daysApply this daily rate to determine end-of-service gratuity and annual leave paymentsThis method protects commission workers by accounting for income
fluctuations and seasonal variations in earnings.What Are Your Rights to Annual Leave Allowance?UAE labour law provides clear protections for annual leave entitlements, regardless of whether you use the leave days before termination.Annual Leave Payment Rights:According to Article 29 of Labour Law No. 33 of 2021, employees receive wages for all accrued leave days, even when quitting before taking
the time off.Key Entitlements Include:Payment for unused leave days from your entire employment periodProportionate leave wages for partial years workedAnnual leave allowance claims for up to two years (within the one-year limitation period)For commission workers, these payments calculate using the six-month average method described above, providing fair compensation based on actual earnings patterns.How
Can You Protect Your Commission Rights?Taking proactive steps safeguards your commission earnings and strengthens your legal position if disputes arise.Essential Documentation:D...
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).