When a Company Bankrupt in UAE, goes bankrupt, or is liquidated, employees often worry about losing their end-of-service entitlements. Here’s what UAE law says about protecting your gratuity and how to claim it.
Need to calculate gratuity? Use our free calculator
Are Gratuity Claims Protected in Bankruptcy?
Yes. Under UAE law, employee end-of-service entitlements are treated as priority debts in insolvency proceedings. This means gratuity, unpaid salaries, and leave encashment must be settled before other creditors are paid.
📋 Official source: UAE Government Portal – Labour Rights
What to Do If Your Employer Is Insolvent
- File a MOHRE complaint immediately via mohre.gov.ae or call 800-60
- Register as a creditor in the bankruptcy proceedings through the UAE courts
- Gather documentation: employment contract, pay slips, bank statements, Emirates ID
- Contact a labour lawyer if the amounts are significant
The UAE Insolvency Law
The UAE Federal Decree-Law No. 9 of 2016 on bankruptcy and its amendments govern company insolvency. Employees are classified as preferred creditors for unpaid wages and end-of-service benefits.
📋 Official source: UAE Government Portal – Insolvency & Bankruptcy
If the Company Has No Assets
If the company has been fully liquidated with no remaining assets, recovery can be difficult. This is why MOHRE strongly encourages employees to file complaints at the first sign of financial distress — not after full closure.
FAQs
Can I claim gratuity if I was made redundant due to company closure?
Yes. Redundancy due to company closure entitles you to full gratuity, leave encashment, and notice period pay.
Is there a government fund that covers unpaid gratuity?
The UAE does not currently have a state-backed insurance fund covering unpaid gratuity (unlike some other countries). DIFC and ADGM have their own DEWS savings schemes which do protect employees in this scenario.
Know your entitlement before you need it. Use our UAE Gratuity Calculator to calculate what you’re owed.