When should the gratuity be paid?
The employer must pay the gratuity along with all other final settlement dues within 14 days from the employee's last working day (end date of the employment contract).
UAE Labour Law mandates strict timelines for gratuity payment to protect employee rights:
Payment Deadline
- Within 14 days of last working day
- Includes weekends and public holidays
- Cannot be delayed without legal justification
- Late payment may incur penalties
Final Settlement Components
- Outstanding salary and overtime
- Unused annual leave balance
- End-of-service gratuity
- Any other contractual benefits
Acceptable Deductions
- Outstanding loans to company
- Advance salary payments
- Damages caused by employee negligence
- Notice period shortfall (if applicable)
Employee Rights
- Right to detailed settlement statement
- Can dispute deductions through labor courts
- Interest may be payable on delayed payments
- Ministry of Human Resources can intervene
Enforcement
- Labor courts handle disputes
- Ministry of Human Resources mediation
- Potential business license implications
- Criminal liability for willful non-payment
