End of service gratuity payment for UAE worker expected at time of final salary

UAE Labour Law does not specify when the end of service gratuity and other final benefits should be paid.

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I would like some information regarding end of service gratuity. What is the maximum number of days an employee should have to wait for their end of service gratuity to be deposited after turning in all the exit paperwork and the cancellation of the residency? Who should the employee contact if the employer has passed this amount of time and still not given the employee their end of service payment? If the employee is provided with accommodation by the company, how long must this be available for after the final payments are made? AM, Abu Dhabi

UAE Labour Law does not specify when the end of service gratuity and other final benefits should be paid, but the expectation is that this would be at the time of the ­final salary payment and when the residency visa is cancelled. Employees are usually asked to sign paperwork declaring they have received all that is due to them ahead of visa cancellation and this refers to the gratuity payment and any days of annual leave accrued and not taken, so it is a clear indicator that it should be paid upon finishing work.

If a payment is outstanding then the employee can go to their local Tasheel (labour) office or register a complaint at the Ministry of Human Resources & Emiratisation (formerly known as the Ministry of Labour). If an employee is living in accommodation provided by the employer, Article 131 of UAE Labour states: “In the event where the employer provides the worker with accommodation, the worker shall vacate the accommodation within 30 days from the date of termination of the employment thereof.”

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End of service gratuity

Paolo Vecina / The National

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Keren Bobker is an independent financial adviser and senior partner with Holborn Assets in Dubai, with over 20 years’ experience. Contact her at keren@holbornassets.com. Follow her on Twitter at @FinancialUAE.

The advice provided in our columns does not constitute legal advice and is provided for information only.

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