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Losing a job in the UAE can be stressful, but employees are protected under a Federal Decree Law on the Regulation of Labour Relations, which clearly outlines what workers are entitled to receive after termination or resignation. From gratuity payments and unpaid salary to leave encashment and return airfare, here is what every UAE employee should know.

Final settlement must be paid within 14 days

Under UAE law, employers must pay all dues within 14 days from the end of the employment contract. This includes: • Outstanding salary • End-of-service gratuity (if eligible) • Payment for unused annual leave • Contractual bonuses or commissions due • Any agreed allowances • Other contractual benefits Failure to pay within the legal period can be challenged through Ministry of Human Resources and Emiratisation (MoHRE).

End-of-service gratuity: Who qualifies?

Full-time employees qualify for gratuity after completing at least one year of continuous service. Gratuity is calculated using basic salary only. It does not include: • Housing allowance • Transport allowance • Overtime • Bonuses • Commission What if you worked less than one year? Employees who complete less than one year of continuous service are generally not entitled to gratuity. What is the gratuity entitlement? • 1 to 5 years: 21 days’ basic salary per year • More than 5 years: 30 days’ basic salary per additional year The total gratuity cannot exceed two years’ basic salary. The formula is: Basic salary ÷ 30 = daily wage × total gratuity period Sample computation For example, if your basic salary is Dh4,000 and you worked six years, so your gratuity would be Dh18,000. Here is how it is computed: Daily wage: Dh4,000 ÷ 30 = Dh133.33 Gratuity for six years: 5 years × 21 days = 105 days 1 year × 30 days = 30 days Total gratuity period: 135 days Compute: Dh133.33 × 135 days = Dh18,000 Use the gratuity calculator here

Can gratuity be denied?

Yes, but only in limited circumstances involving gross misconduct as defined under UAE labour law. Employers may also deduct legally enforceable debts or court-ordered amounts from gratuity.

Unused annual leave must be paid

Employees are legally entitled to compensation for any accrued but unused leave. Annual leave entitlement is: • 30 days per year after one full year of service • Two days per month if service exceeds six months but is less than one year If employment ends before leave is used, the employee must receive payment for the unused balance. Employers cannot block annual leave for more than two years unless the employee agrees to carry it forward.

Your experience certificate is free

Employees can request an experience certificate free of charge after their employment ends. The certificate must include: • Date employment started • Date employment ended • Total service duration • Job title or role performed • Last wage received • Reason contract ended The UAE law prohibits employers from including anything in the certificate that could damage the worker’s reputation or reduce future employment opportunities.

Return ticket: Who pays?

Employers must pay the cost of returning the worker to: • The original recruitment location, or • Another agreed destination This does not apply if: • The employee joins another UAE employer, or • The termination resulted from misconduct attributable to the employee

Limited vs unlimited contracts

The UAE now primarily uses fixed-term contracts, though older unlimited contracts may still exist in converted form. Contract renewals count as continuous service, not a reset. This matters because gratuity is based on your total uninterrupted service period.

What to do if your employer refuses to pay

Employees should first request a written settlement breakdown from HR. If payment is delayed or disputed, workers can file a complaint with MoHRE. If mediation fails, the case may be referred to labour court.

Expert tips before signing your final settlement

Before signing any final settlement: • Check gratuity calculation uses basic salary only • Verify your joining and last working dates • Confirm unused leave is included • Review deductions carefully • Keep copies of your contract and salary slips • Request your experience certificate immediately Knowing your legal rights can prevent costly mistakes and ensure you receive everything owed under UAE law. ICA/CAM/Expat Media Read: UAE Federal Decree Law on Labour Relations
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