Whether you’re switching careers, relocating, or simply need a break, leaving your job can be both exciting and overwhelming. But before you say your final goodbyes and pack up your desk, there’s one major thing you must not overlook—your end-of-service benefits.
In the UAE, the law ensures that employees are fairly compensated when they leave a job. However, many people—especially expats—are not fully aware of what they’re entitled to. From gratuity payments to unused leave balances and unpaid wages, the numbers can add up to a surprisingly generous payout.
Here’s a humanised breakdown of what you’re actually owed when you resign or get terminated in the UAE.
Start with a Final Paycheck
The moment you resign or are let go, your employer is legally required to settle your dues. This includes your final salary, which covers all the working days of your last month. It should also include any unpaid overtime, commissions, bonuses, or allowances that are contractually agreed upon and haven’t yet been paid.
Your employer must clear all of this within 14 days of your last working day. It’s important to cross-check the amount and clarify any discrepancies before signing any final documentation.
Don’t Forget the Gratuity
This is often the biggest chunk of your end-of-service benefits. The gratuity is a lump sum amount paid to employees who have completed at least one year of continuous service with the same employer.
Gratuity is calculated based on your basic salary—not your full package. So, if your basic salary is AED 5,000 and you’ve worked for five years, here’s how it works:
- For the first five years: 21 days of basic pay for each year
- For any service beyond five years: 30 days of basic pay per year
The maximum gratuity you can receive should not exceed two years’ worth of your basic salary.
What If You Resign Before Completing One Year?
If you resign before completing one full year, you won’t be eligible for any gratuity. That might feel disheartening, but this rule encourages longer tenures and helps companies manage turnover costs.
If you’re just a few months away from completing your first year, it might be worth sticking around a little longer. That extra bit of patience could add thousands of dirhams to your final payout.
Compensation for Unused Annual Leave
This is another component that many employees forget about. If you have any unused vacation days, you’re entitled to be paid for them. The calculation is simple—your daily wage multiplied by the number of unused days.
If your company follows the common 30-day annual leave structure and you’ve only taken 10 days that year, you’re owed payment for the remaining 20.
Make sure HR gives you a breakdown of your leave balance before you exit. This can be a significant sum, especially if you haven’t taken much time off.
Flight Tickets and Repatriation Costs
Many employment contracts in the UAE include a clause that the employer will provide a flight ticket to your home country once you leave the company. If this is in your contract, you’re entitled to receive either the ticket or its equivalent cost.
If you’re planning to stay in the UAE and don’t need the flight, you can ask for a cash payout instead. But this is only applicable if it’s written into your contract or company policy.
End-of-Service Certificate
Though not monetary, this document is crucial. Your employer must give you a service certificate stating your job title, the start and end date of your employment, and a brief note about your conduct and performance.
Having this in hand helps you when applying for future roles or residency visas, especially if you’re planning to shift to another company within the UAE.
Terminated? You Might Be Entitled to Even More
If your employer terminates you without a valid reason (as per UAE Labour Law), you may be eligible for compensation over and above your gratuity and final pay. This compensation is typically calculated based on your full salary (including allowances) and can range up to three months’ pay.
If the termination was arbitrary or without due notice, you have every right to file a claim and seek additional compensation.
Beware of Deductions
Sometimes your final payout might come with a few surprises—like deductions for company property not returned (such as laptops or phones), outstanding loans or advances, or damage claims.
Make sure you return all assets and clear any advances before your last day to avoid unnecessary deductions. Also, request a detailed breakdown of your final settlement so you know exactly where your money is going.
Resigning During Probation? Don’t Expect Much
If you’re still in your probation period and choose to resign, you typically won’t be eligible for most of these benefits. You’ll get your salary up to your last working day, but gratuity, annual leave, and air ticket reimbursements usually don’t apply.
Also, you must provide the required notice period—generally 14 days if you’re resigning during probation—unless otherwise mentioned in your contract.
New Labour Law Brings Flexibility and Clarity
The UAE’s updated labour laws have brought more transparency to end-of-service benefits. For example, they’ve clarified timelines for final settlements, strengthened anti-discrimination protections, and allowed more flexibility in contract types.
For employees, this means a clearer understanding of rights and faster settlements—so you’re not left chasing your dues long after you’ve moved on.
How to Ensure You Receive Everything You’re Owed
Here are some practical steps you can take to make sure you don’t leave money on the table:
- Review your contract before resigning. Understand what you’re entitled to and what your notice period should be.
- Keep records of your salary slips, overtime hours, unused leave, and correspondence with HR.
- Request a detailed settlement sheet from your employer listing all dues and deductions.
- Don’t sign anything under pressure. Take time to review the documents and ask questions.
- Contact MOHRE if you feel your rights are being violated. You have the option to file a labour complaint online or via their helpline.
Leaving on Good Terms Makes a Difference
No matter your reasons for leaving, always try to exit gracefully. A professional handover, positive relationships, and a respectful goodbye can go a long way. Not only does it help with your future job hunt, but it also ensures smoother processing of your final settlement.
It’s not uncommon for employers to delay payments or skip certain benefits if the exit turns sour. Maintain professionalism, stick to notice periods, and communicate clearly to avoid unnecessary conflicts.
Plan Your Exit Smartly
Your resignation shouldn’t just be about quitting a job—it should be about stepping into a better future. Take control of the financial and legal aspects of your exit just as seriously as your next opportunity.
From negotiating your final dues to ensuring your visa status is in order, the way you manage your exit can significantly impact your next steps. With the right preparation, you can leave your job with clarity, confidence, and the cash you rightfully deserve.
So if you’re planning to resign soon, pause for a moment. Look at your numbers. Read your contract again. Talk to HR. Because the end of a job in the UAE could actually be the beginning of a financially rewarding transition.
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