Employer Obligations When an Employee Dies in the UAE

When an employee dies in the UAE, the sponsoring employer carries legal obligations that go well beyond notifying HR. UAE labor law and Philippine OFW regulations create a dual-track set of requirements — and families who do not know what the employer owes them often walk away with far less than they are entitled to.

UAE Labor Law Obligations

Under UAE labor regulations, the employer must:

Cancel the labor file: The employer initiates the cancellation of the deceased's work permit and coordinates the exceptional visa cancellation with GDRFA (Dubai) or ICP (other emirates).

Calculate and deposit end-of-service gratuity: The employer must calculate all outstanding compensation — unpaid salary, accrued leave, flight allowance, and end-of-service benefits — and deposit them. Under the law, this must be settled within 10 days of death.

Coordinate repatriation: For workers under active employment contracts, the employer is legally responsible for the costs of preparing, packing, and shipping the remains back to the home country. This includes embalming, casket, and air cargo freight.

The gratuity payment goes into the deceased's bank account, which is frozen upon death notification. The family cannot access these funds until probate is complete — a painful irony that means the employer's largest financial obligation sits untouchable in a frozen account.

The Compulsory OFW Insurance (RA 8042 / RA 10022)

For Filipino OFWs hired through licensed Philippine recruitment agencies, the agency must secure a compulsory insurance policy at zero cost to the worker. This is a legal requirement under Republic Act 8042, as amended by RA 10022, and runs parallel to OWWA benefits.

The compulsory insurance provides:

• Natural death benefit: USD 10,000
• Accidental death benefit: USD 15,000
• Actual repatriation costs: Paid directly to the logistics provider
• Compassionate visit allowance: Covers travel for one family member to visit the UAE if the worker is hospitalized for more than seven consecutive days

This policy is separate from any private life insurance the worker may have purchased independently. Many families are unaware it exists because the worker never receives documentation — the agency holds the policy.

What to Do When the Employer Defaults

If the employer refuses to pay repatriation costs, stalls on gratuity calculations, or denies any obligation:

1. Contact the Migrant Workers Office (MWO) — Abu Dhabi: +971 56 270 9157; Dubai: +971 56 353 5558. They can file a formal labor complaint with the Ministry of Human Resources and Emiratisation (MoHRE).

2. Request OWWA intervention — OWWA can tap the repatriation assistance fund to cover costs when the employer defaults, and then pursue the employer for reimbursement.

3. Document everything — Get the employer's commitments (or refusals) in writing. Verbal promises from HR or PRO staff dissolve when the labor case reaches MoHRE.

4. Contact the recruiting agency in the Philippines — Ask the MWO or DMW to help pursue the compulsory insurance claim. The agency must have secured the policy required under RA 8042, as amended by RA 10022.

The Dependent Visa Cascade

When the deceased sponsored family dependents, their visas face automatic cancellation. The surviving spouse must apply for a one-year widow visa extension through GDRFA/ICP before the grace period expires, or face overstay penalties of AED 50 per day.

The employer is not legally responsible for the dependents' visa situation, but practically, the employer's speed in processing the visa cancellation of the deceased determines how quickly the surviving spouse can file for the extension.

The Filipino Dies in the UAE — Family Guide includes a detailed employer accountability checklist and letter templates for demanding compliance, making it harder for employers to delay or dodge their legal obligations.