EOSB Settlement Guide • Article 51 & 53

UAE End of Service (EOSB) Calculator

Estimate your comprehensive End of Service Benefits (EOSB) settlement under UAE Labour Law. Calculate statutory severance pay, review final settlement timelines, and calculate accrued annual leave encashment.

EOSB Settlement Estimator

AED
Days
Estimated Total Settlement Payout
AED 57,500.00
Statutory Gratuity + Unused Leave Encashment
Statutory Gratuity
AED 52,500.00
Leave Encashment
AED 5,000.00
Continuous Service
5 yrs, 0 mos
Daily Wage Base
AED 500.00
Notice: Under Article 53, payment must be remitted within 14 calendar days of contract end date.
Settlement Estimate Notice:Estimate only. Calculations are based on standard UAE Labour Law provisions (Federal Decree-Law No. 33 of 2021) and standard employment formulas. Actual benefits, salary structures, or overtime may vary based on your specific contract terms, employer policies, or free zone regulations (e.g. DIFC, ADGM). Not legal or financial advice.

The Complete UAE End of Service Settlement Checklist

When concluding employment in the UAE mainland or free zones, an employee’s final settlement involves more than just their gratuity sum. Under Federal Decree-Law No. 33 of 2021, the settlement (often termed the Final Settlement & Discharge Slip) typically includes:

Settlement ItemLegal AuthorityCalculation Basis
Severance GratuityArticle 5121 days/yr for 1st 5 yrs, 30 days/yr thereafter (Basic Salary ÷ 30)
Unused Annual LeaveArticle 29(Basic Salary ÷ 30) × Accrued Unused Leave Days
Final Month WagesArticle 22Pro-rata monthly salary for all calendar days worked up to last day
Repatriation AirfareArticle 13One-way flight to origin country (if leaving UAE and not transferring visa)

Key Differences: Resignation vs. Termination

Under the old 1980 Labour Law, resigning voluntarily from an unlimited contract resulted in severe gratuity penalties (deductions of 1/3, 2/3, or complete forfeiture).

Under the 2021 Labour Law (Article 51):

  • All employment contracts are standardized as fixed-term (limited) agreements.
  • No resignation reductions apply once an employee has completed 1 full continuous year of service and served their contractual notice.
  • If an employee resigns during their probationary period (up to 6 months), no gratuity is payable and 14–30 days written notice is required.

Deductions Permitted by Law

An employer may legally deduct certain amounts from the final end-of-service settlement under Article 25:

  • Repayment of unearned loans or salary advances.
  • Recovery of documented company property (laptops, vehicles, access cards) not returned.
  • Court-ordered debt or maintenance payments.
  • Important: Employers are strictly prohibited by UAE law from deducting recruitment fees, visa stamping charges, or work permit costs from an employee's gratuity.

End of Service Benefit FAQs

Within how many days must an employer disburse the final EOSB settlement in the UAE?

Under Article 53 of Federal Decree-Law No. 33 of 2021, employers are legally required to pay all outstanding wages, severance pay, and final end-of-service entitlements within 14 calendar days from the date the employment relationship terminates.

How is annual leave encashment computed upon separation?

According to Article 29 of the Labour Law, employees are entitled to a cash payment for all accrued, unused annual leave days calculated on the basis of their basic wage at the time of departure: (Basic Salary / 30) × Accrued Unused Leave Days.

Is an expatriate employee entitled to a repatriation flight ticket?

Under Article 13, the employer is obligated to bear the cost of the worker’s repatriation flight ticket back to their home country or contracted point of hire upon termination, unless the worker joins another employer inside the UAE or resigned without good cause.

How does the alternative Voluntary Alternative End-of-Service Scheme (Savings Scheme) work?

In late 2023, the UAE Ministry of Human Resources and Emiratisation (MOHRE) and the Securities and Commodities Authority (SCA) introduced a voluntary workplace savings scheme. Employers who enroll make monthly investment contributions (5.83% of basic salary for 1-5 years service, 8.33% beyond 5 years) into regulated funds in lieu of the traditional lump-sum gratuity.

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