Deceased Worker’s Entitlement

Practical Guidelines for the Employer to Pay the Deceased Worker’s Entitlement in the New Ministerial Decision

The Ministry of Human Resources and Emiratization issued Decision No. 496/2023 on July 20, 2023, which pertains to the disposition of workers’ entitlements in case of their death. It is important to note that Article 15 of Federal Employment Law No. 33/2021 already mandates the actions employers need to take regarding employees’ entitlements in the event of their death. As per the law, within ten days of the worker’s death or the employer becoming aware of the death, the employer should transfer the employee’s entitlements to the concerned family member, whom the worker may have designated in writing to receive their rights. 

However, if the employer is unable to transfer the employee’s money to their family for any reason, the Ministry Decision No. 496/2023 has introduced additional mechanisms to address the situation. At the same time, the Decision also outlines administrative sanctions for employers who fail to comply with the requirement.

Ministerial Decision’s Stipulations

In pursuance of Article 3 thereof, in cases where the employer is unable to hand over the worker’s entitlements to his family members or the right holders after the prescribed 10 days, the employer shall deposit the employee’s entitlements with the Court Treasury.

The Decision specifies that the deposit of the worker’s entitlement should be placed with the Court in whose jurisdiction the employer-company is located. Ministry, in their turn, shall calculate the sum of such entitlements.

As to the sanction, Article 4 says that in case the employer fails to comply with the provisions of the Ministry Decision, the Ministry may suspend the employer-establishment’s file administratively and such suspension will remain in place until the employer submits evidence of payment of the entitlements in accordance with the provisions of the Decision.

Possible Complications & Solutions

Though it sounds quite clear that, in case the employer cannot transfer monies to the employee’s family, it should deposit them with the court within whose jurisdiction it is located, multiple complications may be encountered on the way, including the reason for which the employer cannot determine or find the right family member. Furthermore, not all companies may be sufficiently certain about the right court with whom to place the deposit.

It, therefore, would be wise, if the proper arrangement is done proactively, during the lifetime of the employee, by obtaining detailed written instructions on the possible transfer in the event of his death.

 Conclusion

This has always been a basic principle of inheritance law that any earnings, allowances and compensations accrued during an employee’s working period will fall into the deceased’s estate and shall subsequently pass onto the heirs after the employee’s death. Now the Decision paves a faster and considerably easier way to make such payment directly to the designated family member, bypassing any lengthy and complicated process of obtaining an inheritance certificate and instructions from the court. Yet, caution shall be exercised to obtain exhaustive information in order to comply with the legal requirements and not to get stuck into a dispute with either heirs or the regulatory body.

For more guidance and information, feel free to contact Al Dhaheri International Advocates & Legal Consultants, your trusted Dubai lawyer, and one of the leading law firms in Dubai, using the contact details provided on our website. Our dedicated team is ready to promptly and efficiently address any inquiries you may have regarding the application of relevant law.

by  – Alona Sadovets