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End-of-Service Gratuity Disputes in the UAE

End-of-service gratuity is a payment due to many employees when their employment ends. Disputes tend to arise about eligibility, the wage used for calculation, the length of service or deductions.

The law sets how gratuity is calculated, and the formula and conditions are updated from time to time. This guide explains the common issues without giving a figure for any individual case.

Eligibility

Entitlement generally depends on length of continuous service and the type of contract and termination. Some conditions apply to short service or certain forms of resignation, so check the current rules.

What pay is used

The calculation generally uses a defined type of wage, such as basic wage, rather than total package. Whether allowances count can be a source of dispute, so check how the contract describes each element of pay.

Length of service

Employers and employees sometimes disagree on start dates, periods of unpaid leave or breaks in service. Contract copies, labour records and payslips help resolve this.

Deductions

Deductions from final dues are limited by law. Common disputes concern deductions for notice, damage or loans, and whether proper procedures were followed.

Checking a calculation

Confirm the start and end dates
Identify the wage used for calculation
Check any unpaid leave or breaks
Compare against the final settlement statement

Do not sign a clearance or release unless you agree with the figures.

Claims process

Unresolved claims may go through the labour authority and then the court. See labour dispute process.

How a consultation can help

A consultation can review your documents and explain how the calculation is typically approached. It does not guarantee any amount, and court representation is through authorised professionals.

Frequently asked questions

Is gratuity paid if I resign?

It depends on the length of service, contract type and rules at the time. Check the current conditions.

Does gratuity include allowances?

Typically calculated on a specific wage component. Check how the law and contract define it.

Can an employer refuse to pay?

Only on grounds the law allows. Disputes can be raised with the labour authority.

Related guides and services

General information only. Please read our Legal Disclaimer.