When Sara approached the end of her contract, she wondered whether she would receive her full end of service UAE gratuity and other dues. Under UAE law, end of service in UAE benefits are a legal right.
In this article, you’ll understand how end of service UAE works, including your rights of employees in UAE, and why engaging Lawyers in Dubai for Labour Law can protect your gratuity and ensure full compliance.
Need professional legal guidance on your EOSB claim or contract review? Click on the WhatsApp icon below.
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What is End of Service in UAE
End of service in UAE refers to the statutory gratuity payment (often called EOSB) that an eligible employee must receive when their employment ends.
Under Federal Decree‑Law No. 33 of 2021 and Article 51, any full‑time private-sector employee who completes at least one year of continuous service is entitled to end of service benefits.
Temporary or part‑time workers are also eligible on a prorated basis, but service periods with unpaid leave are excluded from calculation.
Employers must pay this gratuity within 14 days of contract termination, and may deduct lawful debts owed by the employee. The benefit cannot exceed the equivalent of two years’ basic salary.
How to Calculate End of Service in UAE
Calculating end of service in UAE depends on your basic salary and length of service:
- 1–5 years: 21 days’ basic salary per year
- Beyond 5 years: 30 days per year for each additional year
- Total cap: Not more than two years’ basic salary overall
Step-by-step:
- Use only the basic salary (excluding allowances or bonuses).
- Compute daily rate: basic salary ÷ 30.
- Multiply by 21 days per year for up to 5 years; then 30 days per year thereafter.
- Pro-rate partial years (e.g. half‑year counts as half‑portion).
- Apply the cap of two years’ basic salary.
Examples:
- Four‑year service, AED 10,000 basic salary:
(10,000 ÷ 30) × 21 × 4 = AED 28,000 - Seven‑year service, same salary:
First 5 years: (10,000 ÷ 30) × 21 × 5 = AED 35,000
Years 6–7: (10,000 ÷ 30) × 30 × 2 = AED 20,000
Total = AED 55,000 (subject to two‑year cap).
Workers in limited-term and unlimited-term contracts are treated similarly under current law; resignation after one year still entitles partial or full gratuity depending on length of service.
What is End of Service Benefits UAE
The end of service benefits UAE primarily refer to gratuity, but may also include:
- Payment for unused annual leave.
- Unpaid salary or allowances due at termination.
- Other applicable contractual benefits.
These are part of the rights of employees in UAE and must be settled within 14 days of end of contract. Workers can lodge a claim with MoHRE if an employer delays or denies these entitlements. MoHRE enforces wage protection and labour rights in accordance with UAE Labour Law.
Why Engage Lawyers in Dubai for Labour Law?
If you face delay in paying your end of service UAE gratuity, disputes over calculation, or withheld benefits, skilled Lawyers in Dubai for Labour Law can assist by:
- Reviewing your contract and service history
- Calculating your full legal entitlement accurately
- Filing labour complaints with MoHRE
- Representing you in settlement negotiations or labour tribunals
- Enforcing awards to recover unpaid end-of-service benefits and dues
Their professional guidance ensures full protection of your rights of employees in UAE, and helps you avoid costly mistakes or forfeiture of benefits.
FAQ
In essence, end of service UAE benefits are a critical legal entitlement under UAE Labour Law—based on your basic salary and years of service, with precise formulas and protective caps. Knowing how to calculate end of service UAE, and understanding your full end of service benefits UAE, is essential for any departing employee. Protecting the rights of employees in UAE often hinges on accurate calculation and enforcement.
If you need expert guidance, our Lawyers in Dubai for Labour Law stand ready to help ensure you receive your full legal entitlement, contact us via the WhatsApp.
