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End of service benefits in the UAE; what employees are entitled to and how they can claim them

In the United Arab Emirates, end-of-service gratuity is a legal entitlement for private-sector employees after one continuous year of service. The benefit is calculated using a strict formula based on basic salary rather than negotiation.
Gratuity accrues at 21 days of basic salary for each of the first five years, increasing to 30 days annually thereafter. Housing allowances are excluded from the calculation, which is capped at two years' total pay.
Contract expiry, dismissal, and resignation all qualify for gratuity, provided the employee meets the one-year service threshold. Since recent reforms, resignation no longer reduces entitlements, and employers may only withhold payment under specific legal grounds.
Employers have 14 days from contract termination to settle benefits. If payment is delayed or refused, employees should file a complaint with MOHRE, which may refer unresolved disputes to the Labour Court.
Employees should check if their contract falls under specialized legal frameworks like DIFC or ADGM, as these may differ. Additionally, workers should avoid signing settlement waivers under pressure, as claims generally must be brought within one year.

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