End-of-service gratuity: how it is calculated and claimed
Gratuity is calculated on your last basic wage and your years of service. Here is the formula, what affects it and how to claim it.
4 min readPractice areas
Labour & Employment
Most employment disputes in the UAE start at the Ministry of Human Resources and Emiratisation (MOHRE) before reaching the labour courts. We guide employees and employers through each stage.
We handle
- Unpaid wages and end-of-service gratuity
- Arbitrary dismissal claims
- MOHRE complaints and labour-court cases
- Employment contracts and internal policies for employers
- Non-compete and confidentiality disputes
Situations we often see
“My salary has not been paid for months”
We calculate what is owed under your contract and the law, file the complaint at the right stage and pursue it to judgment if the employer does not settle.
“I was dismissed without a valid reason”
We review the reason given, the notice served and your contract, and assess a claim for arbitrary dismissal alongside your end-of-service dues.
“We are an employer facing a claim”
We review the employment file, prepare your response and advise on settlement where that protects the business.
How we approach it
- 01
Calculate first
Wages, notice, leave and gratuity are calculated from your contract and the law, so the claim is accurate from the start.
- 02
Follow the required path
Labour claims must start at MOHRE in most cases. We handle the complaint, the amicable stage and the referral to court.
- 03
Prevent the next dispute
For employers, clear contracts and policies cost less than claims.
- 04
Through to payment
If a judgment is not paid, we open the execution file.
What to bring
- Employment contract and offer letter
- Payslips or bank statements showing salary
- Termination or resignation letter
- Emails or messages about the dispute
- Passport and Emirates ID copies
- Any MOHRE complaint number already issued
Questions clients ask
How is end-of-service gratuity calculated?
Under the UAE Labour Law, full-time employees who complete at least one year of continuous service are entitled to gratuity based on their last basic wage: 21 days' wage for each of the first five years and 30 days' wage for each additional year, subject to a maximum of two years' wage. Your contract and any unpaid amounts are reviewed alongside it.
Do I have to go to MOHRE before court?
In most cases, yes. Labour disputes are first filed with the Ministry of Human Resources and Emiratisation, which tries to settle them and can decide some claims itself. Unresolved disputes are then referred to the labour courts.
Is there a deadline to bring a labour claim?
Yes. The law sets a time limit for labour claims, which runs from the date the entitlement became due. Please contact us promptly after the employment ends.
Insights
Discuss your matter with an advocate
Send us a short summary of your matter. We confirm there is no conflict of interest, then ask for your documents. We aim to reply within one working day.