If your employer has shut down or disappeared without paying you, start with a MoHRE labour complaint. MoHRE can cancel your work permit without the employer's consent if it cannot reach them (Ministerial Resolution No. 47 of 2022, Article 5). The employer's worker protection insurance can cover up to AED 20,000 of your dues, or MoHRE can draw on a bank guarantee of at least AED 3,000 per worker. If the company goes bankrupt, unpaid wages and gratuity up to three months' pay rank as preferred debts (Federal Decree-Law No. 51 of 2023, Article 179).
Who this guide is for
This guide is for private-sector workers on the mainland whose company has closed, stopped trading, or whose owner cannot be reached, leaving wages or end-of-service dues unpaid. If your salary is only late and the company is still running, start with our unpaid salary checklist and our guide to the salary payment deadline and WPS.
Free zone, DIFC and ADGM workers and domestic workers follow different routes. Check with the authority that issued your work permit.
What protections exist when the employer cannot pay?
| Protection | What it covers | Source |
|---|---|---|
| MoHRE complaint | Settlement, and a MoHRE decision for claims up to AED 50,000 | Labour Law, Article 54 |
| Worker protection insurance or bank guarantee | Insurance up to AED 20,000 per worker, or a guarantee of at least AED 3,000 per worker | Ministerial Resolution No. 318 of 2022 |
| Collective dispute measures | Guarantees paid out, permits cancelled, assets seized | Ministerial Resolution No. 47 of 2022, Article 12 |
| Bankruptcy priority | Wages and gratuity up to three months' pay | Federal Decree-Law No. 51 of 2023, Articles 146 and 179 |
The insurance scheme. In 2018 the mandatory AED 3,000 bank guarantee per worker was replaced by a low-cost insurance option. Under Ministerial Resolution No. 318 of 2022, an employer must either give a bank guarantee of at least AED 3,000 per worker or buy an insurance policy. The UAE Government portal says the policy covers up to AED 20,000 per worker if the company goes bankrupt or fails to pay. That includes:
- unpaid wages for up to the last 120 days;
- end-of-service gratuity;
- the ticket home;
- medical costs for work injuries;
- repatriation of the body if the worker dies.
MoHRE says payment is made on a decision by MoHRE or the concerned labour court, so the route starts with a MoHRE complaint. Health insurance is not covered.
Group claims. Where a dispute involves at least 100 workers, it is a collective labour dispute (Ministerial Resolution No. 47 of 2022, Article 9). If the workers' claims are proven, MoHRE can pay out the guarantees or insurance without the employer's consent. It can also cancel work permits so workers can leave or change status, ask for a precautionary seizure of the company's assets, and stop the company getting new permits (Article 12).
If the company is declared bankrupt. The bankruptcy trustee must use cash on hand to pay wages due before the proceedings began, within 10 days of the decision to open bankruptcy proceedings (Article 146). In the order of debts, end-of-service dues and unpaid regular wages rank as preferred debts, paid before ordinary creditors. They are capped at three months' wage or salary in total and exclude allowances and bonuses (Article 179(7)(d)). Secured creditors, court and trustee costs, court-ordered maintenance and government dues come first. Any amount you are owed above the cap is still a claim, but it does not share this priority. Workers usually take part in bankruptcy through the court process, so take advice if one is opened.
Can I move to a new job if the company is shut?
Usually, yes. The options are:
- Cancellation at your request. If MoHRE cannot reach the employer within five working days of your complaint, it can complete the cancellation of your work permit at your request. This can be extended by five more working days if the employer asks for time. The exception is where the employer shows you are under investigation for a crime related to your work (Ministerial Resolution No. 47 of 2022, Article 5).
- Fictitious companies. If MoHRE finds the company is fictitious, it can cancel your permit at your request. The resolution also says legal action is taken against both the worker and the employer in that case, so get advice if this applies.
- Closure or bankruptcy. The Labour Law lists permanent closure of the business as a ground for the contract ending (Article 42). Under Cabinet Resolution No. 1 of 2022 (Article 25), MoHRE may cancel the permit on its own after a bankruptcy ruling and issue a new one.
- While a court case runs. You may apply for a temporary work permit with a new employer, unless an absconding report was filed against you (Ministerial Resolution No. 47 of 2022, Article 3).
Ministerial Resolution No. 47 of 2022 has been amended since it was issued, and its Article 2 was repealed by Ministerial Resolution No. 782 of 2023 (Article 5), so confirm the current procedure with MoHRE. Once your permit is cancelled, change your residence status within your grace period. See our guide to overstay fines and grace periods.
Step by step
- Record the facts now. Note the last day you were paid, the last day you worked and the date the office closed. Photograph any closure notice.
- Calculate what you are owed. Use the unpaid salary action plan, and include gratuity and leave.
- File a MoHRE complaint quickly. Ministerial Resolution No. 782 of 2023 (Article 1) and MoHRE's guidance refer to 30 days from the breach. File through the MoHRE app, website or 600590000.
- Tell MoHRE if colleagues are affected. Many unpaid workers may lead to a collective dispute and MoHRE's wider powers.
- Ask MoHRE about the guarantee or insurance. Payment comes on a MoHRE or court decision.
- Ask for your permit to be cancelled if you want to move. Keep the reference number.
- Follow the court referral. If MoHRE refers the case, register it within 14 days (Ministerial Resolution No. 47 of 2022, Article 3). See our guide on the court referral stage.
- Check ILOE. Closure is not a resignation, so you may be able to claim unemployment insurance within 30 days.
Documents checklist
- Employment contract and offer letter
- Payslips and bank statements showing the last salary received
- WPS or bank records showing missed payments
- Photos of the closed premises or any closure notice
- Messages with the owner or managers
- Names and contacts of colleagues in the same position
- MoHRE complaint and permit cancellation reference numbers
- Any court or bankruptcy notices
Common mistakes
- Waiting for the owner to come back. MoHRE's 30-day window keeps running.
- Leaving the UAE before filing. It is harder to follow a complaint and a court case from abroad.
- Stopping work without telling MoHRE. Under Article 45 of the Labour Law, a worker may leave without notice for the employer's breach only after notifying MoHRE 14 working days in advance.
- Expecting the insurance to pay everything. Cover is capped at AED 20,000 and needs a MoHRE or court decision.
- Ignoring the permit. An open permit on a dead company can block a new job.
When to speak to a licensed lawyer
Advice is worth considering if you are owed more than the AED 20,000 insurance cover, if the company has entered bankruptcy or liquidation, if there are assets you believe can be attached, or if the employer claims you absconded. The free case check can help you set out the facts first, and CaseDaleel can introduce an independent licensed professional only if you choose.
Frequently asked questions
Can MoHRE pay me if the company has no money?
On a MoHRE or court decision, payment can come from the employer's worker protection insurance (up to AED 20,000 per worker) or bank guarantee (at least AED 3,000 per worker).
Am I a priority creditor if the company goes bankrupt?
Yes, unpaid wages and gratuity rank as preferred debts, but only up to three months' pay and after secured creditors, costs and some other debts.
Can I change jobs without the owner's approval?
MoHRE can cancel your permit at your request if it cannot reach the employer within five working days, extendable by five more.
Does the insurance cover my gratuity?
Yes, end-of-service gratuity is one of the covered items, within the AED 20,000 overall limit.
Can I claim unemployment insurance?
Possibly, because closure is not a resignation, but you must meet all ILOE conditions and claim within 30 days.
What if dozens of workers are unpaid?
At least 100 workers make it a collective dispute, where MoHRE can pay out guarantees, cancel permits and ask for a seizure of the company's assets.
Official sources
- UAE Government portal — Insurance against defaulting employers
- MoHRE — Register a labour complaint (private sector)
- UAE Government portal — Ministerial Resolution No. 47 of 2022 (unofficial English translation, PDF)
- UAE Legislation — Federal Decree-Law No. 51 of 2023 on Financial Reorganisation and Bankruptcy (official Arabic text)
- MoHRE — Federal Decree-Law No. 33 of 2021 and Cabinet Resolution No. 1 of 2022 (consolidated PDF)
General information, not legal advice. CaseDaleel is not a law firm.