Can UAE Employers Deduct Damages from End-of-Service Benefits? What the Law Says About Equipment Liability and Employee Rights

An employee’s end-of-service benefits are often seen as a guaranteed financial right at the conclusion of employment. However, disputes can arise when employers attempt to deduct amounts citing alleged damage to company property. Under the UAE’s updated labour framework, such deductions are not entirely prohibited — but they are tightly regulated and subject to clear legal conditions.


The governing provision is Article 51(7) of Federal Decree-Law No. 31 of 2021, which allows employers to deduct from an employee’s end-of-service benefits any amounts that are legally payable, whether under the law itself or pursuant to a court judgment. Crucially, this right is not absolute. It must be exercised strictly in accordance with the procedures and safeguards outlined in the law and its implementing regulations.

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The UAE has waived visa overstay fines for tourists and certain residents who were unable to leave the country following widespread airspace closures and flight suspensions across the region.

In a statement, the Federal Authority for Identity, Citizenship, Customs and Ports Security said the exemption applies to individuals whose departures were delayed because flights were cancelled, suspended, or rescheduled amid what officials described as “exceptional regional circumstances”.

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A US federal appeals court has rejected a legal challenge to efforts by President Donald Trump’s administration to ban diversity, equity and inclusion (DEI) programmes within federal agencies and among businesses holding government contracts.

A three-judge panel of the Richmond, Virginia-based 4th US Circuit Court of Appeals overturned an injunction that would have prevented the administration from enforcing executive orders signed shortly after Trump returned to office last year, aimed at dismantling DEI initiatives across the public and private sectors.

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