The UAE grants employees to receive an end-of-service benefit in a lump sum called gratuity.
An employee is entitled to receive their gratuity if they have resigned from a job, or if they have been asked to leave. However, gratuity is calculated differently for private sector employees.
“A full-time employee in the private sector who has completed a year or more of continuous service is entitled to an end-of-service gratuity at the end of their service, however, unpaid leave days are not included in calculating the gratuity,” the UAE Ministry of Human Resources and Emiratisation (MoHRE) said in a Twitter post.
According to MoHRE, the end-of-service gratuity is calculated based on the final basic salary of the employee.
The employee is entitled to a gratuity according to working days, given that the employee has completed one continuous year of service.
The employee is entitled to a 21-day salary for each year, from the first five years of service. The employee will also receive a 30-day salary for each year after five years of service.
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