Understanding UAE Law: Can Final Settlements Be Paid in Cash or Must They Go Through a Bank?

Please help me to know the UAE law about the final settlement process for an employee who has resigned or been terminated.

1) Is it compulsory to process the settlement through a bank only, or is it compulsory to settle by CASH?

2) In case the employee is requesting to settle his payment by cash as he wants to close the bank account, what procedures need to be followed.

Dear,

As you said in the above details, it's the final settlement of the employee. You should pay him through the bank. The amount can be transferred immediately to his account, after which he can close the bank account as well.

Dear Mr. Sandeep Sharma,

Thank you for your reply. However, I would like to know about the UAE law on the subject. Please help.

UAE Labour Law on Final Settlement

As per the UAE Labour Law, the employer is supposed to settle the amount with immediate effect once the notice period is adhered to. The UAE Labour Ministry will credit the employer once the employer has made the visa cancellation request and a request to the Emirates Ministry of Labour (Online Process... a few minutes to make the request). The employer is bound to credit your account within a maximum of 15-20 days. Many employers state that it will take 45 days, but this is contrary to the Labour Law.

End-of-Service Contract and Legal Recourse

If your employer has made you sign an end-of-service contract in Arabic, then it likely says that you have been paid your dues and have no further claim. However, in case you are not paid before leaving the UAE, you can take the employer to the Labour Court. The Labour Court is a neutral and just judiciary that works in favor of employees. They will ensure you get paid. But don't wait until the last moment.