Precise calculation and full legal recovery of everything you are owed under UAE law.
End of service gratuity is a statutory right under Federal Decree-Law No. 33 of 2021, payable to every employee who completes one continuous year of employment in the UAE. Withholding it, or miscalculating it, is a direct violation of UAE law.
| Period | Rate |
|---|---|
| Years 1 to 5 | 21 days' basic salary Γ years served |
| Beyond 5 years | 30 days' basic salary Γ additional years |
| Maximum cap | Equivalent of two years' basic salary |
| Payment deadline | Within 14 days of contract end date |
| Basis of calculation | Basic salary only β allowances excluded |
DIFC and ADGM employees are subject to separate frameworks with different calculation rules. Summit Legal handles both regimes.
Employee with 7 years of service, basic salary AED 12,000/month:
This is void under UAE law. The all-inclusive salary structure does not cancel the statutory right to end of service gratuity. Courts consistently reject this argument.
Incorrect in most cases under the 2021 law. The 2021 UAE Labour Law removed the distinction that previously penalised employees who resigned. You may be fully entitled.
Challengeable with proper documentation. The employer cannot simply deduct amounts from your gratuity without a formal, documented and agreed process.
UAE courts do not enforce clauses that extinguish an accrued statutory right. This clause is void regardless of your signature.
This does not relieve the employer of the 14-day legal obligation. Delayed payment is a separate violation entitling you to further remedies.
We independently verify every calculation. Common errors include using the wrong salary figure, applying the wrong formula or capping incorrectly.
The Wage Protection System (WPS) requires every UAE employer to pay salaries through approved financial institutions on the prescribed dates. Delays attract:
Are you considering resigning because your salary is not being paid? Consult us before you resign. In many cases you are entitled to full end of service gratuity despite resigning, if it can be demonstrated that your employer's breach was the reason.
Free first consultation β we tell you exactly what you are owed before any commitment.