To whom the employee's entitlements will be disbursed in the event of the employee's demise?

To whom the employee’s entitlements will be disbursed in the event of the employee’s demise?

The Ministry of Human Resources and Emiratisation “MOHRE” issued the new Ministerial Decision No. 720 of 2023 “Ministerial Decision” regarding preserving the employee’s employment entitlements in the event of his or her death. The Ministerial Decision affirmed that the employer must pay the entitlements of his deceased employee to a member of the employee’s family; whom the employee had specified in writing, within 10 days of the date of death or from the date the employer became aware of his employee’s death.

If the employee passed away and the employer failed to pay the entitlements to their family or the holder of such right, within 10 days, the employer must deposit those entitlements in the trusts account at MOHRE, in accordance with the calculation scheme applies by MOHRE in this respect.

However, the employer’s failure to pay the employment entitlements within 10 days will result in administrative suspension of the company, and this suspension will continue until the employer submits a proof indicating the payment for employment entitlements of the relevant deceased employee. This decision repeals any other decisions or provisions that conflict with it and shall be effective from the date of its issuance, on November 22, 2023.

This Galadari Alert was authored by Mostafa Shehata. For more information on Employment practice in the UAE please contact Mostafa on:

Mostafa Shehata Senior Associate [email protected]