When ending a Direct Employee contract in the UAE, employee are eligible for end of service benefits. The amount depends on several criteria.
Upon contract termination, the compensation calculation includes the following components:
Last Month’s Salary
Calculated as: Daily wage * Days worked in the final month
Gratuity compensation
Applies only to non-GCC nationals or employees not receiving DEWS contributions.
For Limited term contracts:
Tenure (years) | Gratuity |
Less than 1 year | No gratuity entitlement |
1 to 5 years | 21 days' basic pay per year of service |
More than 5 years | 30 days' basic pay per year of service (for each year beyond 5 years) |
For Unlimited term contracts:
Tenure (years) | Gratuity |
Less than 1 year | No gratuity entitlement |
1 to 3 years | 1/3 of 21 days' basic pay per year of service. |
More than 3 years to 5 years | 2/3 of 21 days' basic pay per year of service |
More than 5 years | 30 days' basic pay per year of service (for each year beyond 5 years) |
Vacation Leave compensation
Calculated as: Daily wage * Unused vacation days.