SITUATION
An employer operating in a Free Zone wants to understand:
Whether End of Service Benefits (EOSB) are mandatory for their employees
Where to find the exact penalty amounts for non-payment
Whether an employee can voluntarily waive EOSB by signing a written waiver at the time of contracting.
ANSWER
EOSB in a free zone company is non-negotiable. Federal law applies in full. Employee waivers are void. Penalties apply per affected employee on top of the owed amount.
EOSB is mandatory and cannot be waived or excluded in a free zone.
EOSB is governed by Article 51 of UAE Federal Labour Law No. 33/2021 (the UAE Labour Law)
This is an imperative (mandatory) norm — it applies regardless of what the employment contract says
Free zone employment laws explicitly confirm that UAE Labour Law sets the statutory minimum for all employment relationships within a free zone.
Free zone companies may enhance the statutory minimum (e.g., offer more generous EOSB terms)
The penalties for non-payment?
Penalties for failure to pay EOSB are established under UAE Labour Law No. 33/2021
Fines range fr...