When must a final settlement be paid in the UAE?
Under Article 53 of Federal Decree-Law No. 33 of 2021, the employer must pay the worker's wages and all other entitlements, including end-of-service gratuity and unused leave, within 14 days of the end of the contract. The deadline applies whether the worker resigned or the employer ended the contract.
What is usually in the settlement
- Salary for days worked and not yet paid.
- Unused annual leave on the basic wage.
- End-of-service gratuity after one year of service.
- Other entitlements in the contract, such as an air ticket or notice pay.
- Less amounts the employer may lawfully deduct.
Paying it correctly
For a contractor with a large workforce, settlements arrive every month. SupaJack Construct works out the settlement from the same records it pays from, compares the gratuity with the provision already in the accounts, and posts the difference, so the 14-day payment is not delayed by a manual calculation.
Related tools and guides
See the labour law guide, the gratuity calculator, the overtime calculator, the annual leave calculator, the final settlement calculator and the meaning of basic salary.
Worked example
A worker's contract ends on 10 March. The employer must pay the March salary up to the 10th, the unused annual leave on basic wage and the end-of-service gratuity by 24 March, fourteen days later. Paying the gratuity a month later because payroll runs monthly would miss the deadline.
Questions people ask
Does the 14-day deadline apply after resignation?
Yes, it applies from the end of the contract.
What can be deducted?
Amounts due under the law or a court judgment, under the Implementing Regulation's conditions.
Is gratuity part of the settlement?
Yes, for workers with at least one year of continuous service.