Final Settlement in the UAE: What to Pay, What You Can Deduct and the 14-Day Deadline

Short answer: when employment ends in the UAE, the employer has 14 days from the last working day to pay everything owed. That usually means unpaid salary, accrued leave, end-of-service gratuity, any notice pay, and anything else the contract promises. Article 53 of Federal Decree-Law No. 33 of 2021 sets the deadline, and it applies whether the employee resigned or was terminated.

Most MOHRE complaints we see from ex-employees aren't about large sums. They're about a settlement that came late, left something out, or had a deduction nobody explained. Here's a checklist that avoids all three.

What goes into the final settlement

Item	Calculated on	Notes
Salary to the last working day	Full wage	Pro-rata for part months (monthly wage ÷ 30 × days)
Accrued annual leave	Basic wage	Includes any pro-rata leave for the final year
End-of-service gratuity	Last basic wage	Only after 1 year of continuous service
Notice pay	Full wage	Only if the notice period wasn't served
Overtime and other dues	As earned	Unpaid overtime, commission, bonuses already earned
Repatriation	Cost of the ticket	Unless the employee is joining another UAE employer

Gratuity in one paragraph

21 days of basic wage for each of the first five years, 30 days for each year after that, pro-rated for part years, capped at two years' total wage. Under the 2021 law, resigning doesn't reduce it. Unpaid absence days don't count towards service. Our free gratuity calculator does the maths for you.

What you can deduct

Only what the law allows: documented salary advances or loans, money overpaid by mistake, amounts the employee owes under a court judgment, housing or other items they agreed in writing to repay, and damage caused through the employee's own fault after a proper investigation. Total deductions are capped, so you can't wipe out a settlement to recover a large debt.

You can't deduct for things like recruitment costs, visa costs, or "training" with no signed agreement. You also can't hold the settlement because a laptop hasn't been returned. Recover the property separately or deduct its documented value within the legal limits.

The 14 days, and what happens if you miss them

The clock starts on the day the contract ends, not when HR gets round to it. If you miss the deadline, the employee can file a free complaint with MOHRE, which can block new work permits for your company while it's open. Courts can also add interest on late dues.

Get the employee to sign a settlement statement listing every item and the total. It doesn't stop a claim for something genuinely owed, but it ends most arguments before they start.

Got a final settlement you're not sure about?

Send us the numbers (names removed) and we'll check it line by line before you pay.

Ask us on WhatsApp →

The UAE HR Master Pack includes a final-settlement sheet, clearance form and resignation acceptance letter, plus an EOSB calculator in Excel.

Quick answers

How long does an employer have to pay final settlement in the UAE?
14 days from the date the employment contract ends, under Article 53 of Federal Decree-Law No. 33 of 2021.

What is included in a UAE final settlement?
Unpaid salary, accrued leave salary, end-of-service gratuity if over one year of service, notice pay if notice was not served, other earned dues, and the repatriation ticket where applicable.

Is gratuity reduced if the employee resigns?
No. Under the current law gratuity is the same whether the employee resigns or is terminated, once one year of service is complete.

Can an employer withhold final settlement until company property is returned?
No. The settlement must be paid within 14 days. The employer can pursue the property separately or deduct its documented value within legal limits.

This guide is general information based on Federal Decree-Law No. 33 of 2021 and Cabinet Resolution No. 1 of 2022, as amended. It is not legal advice. The DIFC and ADGM have their own employment laws.