Understanding the situation
When employment in the UAE private sector ends, an employee may become entitled to end-of-service benefits, sometimes referred to informally as a gratuity. Whether a benefit is due, and how it is calculated, depends on the applicable law in force, the type of employment contract, and the length of continuous service.
Because the rules and their application can vary with the facts — including how the employment ended and what the contract provides — this article does not set out any calculation and should not be relied on to estimate a specific figure.
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Factors that may be relevant
Because these factors interact, the same length of service can lead to different outcomes for different employees. A general guide cannot substitute for a review of the individual contract and service record.
- The type of employment contract and its terms.
- The total length of continuous service with the employer.
- How the employment relationship ended.
- Any amounts already paid, advanced, or deducted during employment.
- The applicable law and procedure at the time the entitlement is assessed.
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Practical steps
- 1Keep a copy of every employment contract and any amendments.
- 2Retain payslips and salary certificates covering the period of employment.
- 3Record the exact start and end dates of employment.
- 4Note the circumstances in which the employment ended.
- 5Seek advice before agreeing to a final settlement figure if anything is unclear.
