A UAE final settlement is more than gratuity. Review unpaid salary, unused annual leave, notice pay, commissions, expenses, deductions and any compensation as separate lines. A correct gratuity number does not prove that the entire settlement is correct.
Documents to collect first
- Signed employment contract and amendments
- Work permit or free-zone employment record
- Salary certificate and recent payslips
- Official first and last working dates
- Annual-leave and unpaid-leave reports
- Resignation, termination and notice letters
- Commission or incentive plan
- Expense approvals and loan or deduction records
- End-of-service savings-scheme statements, when applicable
Final settlement lines to review
| Line | How to check it | Common error |
|---|---|---|
| Final salary | Salary through the last working day | Wrong cut-off date |
| Gratuity | Last basic salary × eligible gratuity days | Using gross salary or old resignation fractions |
| Unused annual leave | Legally due balance paid according to basic wage when service ends | Using an unexplained balance or rate |
| Notice pay | Compare notice served with the contract | Combining notice compensation with gratuity |
| Commission or bonus | Check whether it had contractually become due | Omitting earned amounts without explanation |
| Expenses | Match approved claims and receipts | Leaving approved reimbursements unpaid |
| Deductions | Request the amount, reason and legal basis | Lump-sum deduction without documents |
| Repatriation or ticket | Check the contract and legal framework | Assuming every case is identical |
How to verify the gratuity line
- Confirm that the standard federal formula applies to the employment.
- Use the last monthly basic salary.
- Verify the exact service period and unpaid absence.
- Apply 21 days per year for the first five years and 30 days after five.
- Check part-time adjustment and the two-year wage cap.
- Compare your calculation with HR’s written breakdown.
Leave salary and gratuity calculation in UAE
These are separate entitlements. Gratuity uses the end-of-service formula and eligible service. When employment ends, the cash allowance for the legally due unused annual-leave balance is calculated according to basic wage. Ask HR to show both the number of leave days and the daily rate.
Before signing an acknowledgement
- Do not sign a blank or incomplete settlement.
- Check whether the document says all dues were received.
- Make sure the amount in words matches the number.
- Save a copy before handing over original documents or access.
- Record any disputed line in writing.
If your calculation differs from HR’s
Compare inputs before arguing about the result: basic salary, start date, last day, unpaid leave, work-pattern ratio, jurisdiction, savings-scheme enrolment and deductions. Request a corrected itemised statement. Use MOHRE or the relevant free-zone authority when the disagreement cannot be resolved.
Official sources
- UAE Labour Relations LawArticles 29, 51 and 53 cover annual leave, gratuity and final payment timing.
- MOHRE worker-rights guidanceOfficial overview of employment entitlements.