Labour Law

End-of-Service Gratuity

Labour Law
What it is: End-of-service gratuity is a statutory lump-sum payment owed to employees who complete a qualifying period of service, calculated on the basic wage and length of service under the UAE Labour Law. Distinct rules and savings schemes may apply in DIFC and ADGM. When it applies: Gratuity becomes due on the end of employment, whether by resignation or termination, once the minimum service period is met. Disputes often concern the correct wage base, service length, deductions or non-payment. How a lawyer helps: A lawyer verifies your eligibility, calculates the correct gratuity using the proper wage components and service period, and identifies any wrongful deductions. The lawyer combines the gratuity claim with unpaid wages and notice where relevant, and pursues payment through the Ministry of Human Resources and Emiratisation or the applicable free-zone authority, escalating to the labour courts if needed. First steps: Keep your contract, payslips showing basic wage, joining and leaving dates and the final settlement, note any disputed deductions, and consult a lawyer to confirm the correct figure and deadlines. Accurate calculation is often where cases are won or lost. This is general information, not legal advice for a specific case.

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End-of-Service Gratuity

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