Payment of bonuses becomes mandatory if the same is mentioned in the employment contract

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Question: I am considering taking up a job in the UAE. Are bonuses common in the country? What about gratuity? Can I get these aspects added to my employment contract?

Response: Pursuant to your queries, it is assumed that you have received a full-time employment offer from an entity based in the mainland of UAE. Therefore, the provisions of Federal Decree Law No. 33 of 2021 on the Regulation of Employment Relations (the ‘Employment Law’) and those of Cabinet Resolution No. 1 of 2022 on the Implementation of Federal Decree Law No. 33 of 2021 Regarding the Regulation of Employment Relations (the 'Cabinet Resolution No. 1 of 2022') are applicable.

An employer, at its discretion, may award bonuses to its employees. The Employment Law is silent on mandatory bonus payments. However, an employer may include bonuses as one of the benefits in the salary payable to an employee in the employment contract. It can also be specified separately.

Payment of bonuses becomes mandatory if the same is mentioned in the employment contract. Therefore, you may request your employer to include it.

Article 14(4) of Cabinet Resolution No. 1 of 2022 mentions that any employer in the UAE which employs more than 50...

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