Employers can only deduct gratuity for five specific reasons under UAE Labour Law

UAE Labour Law allows employers to make deductions from end-of-service benefits only in specific circumstances governed by Article 51(7) of Federal Decree-Law No. 33 of 2021 and Article 29 of Cabinet Resolution No. 1 of 2022. Permitted deductions include: loans or overpayments owed by the worker; pension and insurance contribution shortfalls; disciplinary penalties subject to MoHRE-approved lists; court-ordered debts; and damage caused by the worker attributable to mistake or violation of employer instructions. Deductions for violations or damage must occur within three months of the amount becoming due unless otherwise agreed. Outside these five categories, employers cannot lawfully deduct costs such as recruitment fees, visa, medical expenses, uniforms, or unexplained settlement amounts. If employees believe a deduction was wrongful, they should request written justification specifying which Article 29 category applies, avoid signing unqualified settlements, file a complaint with MoHRE, and note that disputes cannot be heard after two years from the work relationship end date.