Final settlement Payment timeline in UAE: A concise overview

HLB UAE Payroll Team

image

HLB HAMT - Accounting Firm in UAE

Phone:- +971 4 327 7775
Mobile:- +971 50 205 9540
WhatsApp:- +971 56 219 1607
Email:- dubai@hlbhamt.com

    Schedule a Consultation




    The UAE is home to numerous expatriates from many different countries, which supports the success and progress of the country. End-of-service benefits are the responsibility of the employer, and they must be handled and paid in a timely and precise way. Employees in the UAE are subject to a specified set of end-of-service rewards under the country’s labour laws. EOS benefits are provided for the time spent with the organisation after the job contract has ended.

    The previous UAE Labor Law (UAE Federal Law No. 8 of 1980), which will be completely replaced by the New UAE Labor Law Federal Decree Law No. 33 of 2021, has seen several significant changes. On February 2nd, 2022, the New UAE Labor Law went into force.

    How does final settlement work?

    Final settlement calculation is the process used to calculate all of the due amounts for an employee who is leaving, quitting their job, or being let go by the business. It comprises the computation of all obligations that must be paid, such as End of Service Gratuity, Repatriation ticket, Notice period pay, Any unutilized leave i.e. Vacation pay, Unprocessed Salary, Any other benefits or compensation mentioned in the Employment Contract, Any other outstanding payment or deduction, etc.

    Deadline for End of Service payment in UAE:

    According to the new UAE Labor Law Federal Decree-Law No. 33 of 2021, All End of Service Benefits must be paid within 14 days of the employee’s last day of employment. There was no such deadline for End of service entitlement under the prior statute, this extra provision was inserted.

    Frequently Asked Questions

    1. Is there really a timeline for giving the employee their EOS payment?

      Yes, the end-of-service benefit must be paid within 14 days of the end of the employment contract or termination.

    2. Would the employee be entitled to payment of the entire final settlement sum within 14 days or just end-of-service gratuity?

      The company is obligated to pay all entitlements and settle any debts Within 14 days after the employee’s final day of employment.

    3. What different pay components are involved when calculating an employee’s final settlement in the United Arab Emirates?

      1. End of Service Gratuity
      2. Repatriation ticket if applicable
      3. Notice period pay if applicable
      4. Any unutilized leave i.e. Vacation pay
      5. Unprocessed Salary
      6. Any other benefits or compensation mentioned in Employment Contract
      7. Any other outstanding payment or deduction

      For more information about Final Settlement calculation in UAE, please follow the link

    4. What is End of service Gratuity and who is eligible for this benefit?

      Gratuity is a monetary payment eligible to an employee as a lump sum at the end of his tenure provided that the period of service exceeds one year. For more information about End of service Gratuity in UAE, please follow the link

    5. Is the use of WPS Payment Processing required for EOS?

      WPS is preferred but not necessary for EOS payment. The business can also issue checks. Please visit for more information on WPS in the UAE.

     

    Did you find the blog informative?         

     

    Varun R Chandra
    Varun R Chandra
    07:38 25 Apr 21
    HLB Hamt is highly recommended! They have the quality of services that would satisfy your needs. I'm glad I found them.
    Giuseppe Assi
    Giuseppe Assi
    06:20 31 Jan 21
    I HAD A GOOD EXPERIENCE WITH HLB HAMT DUBAI. THEY HAVE A VERY PROFESSIONAL TEAM, GOOD QUALITY OF SERVICES, GOOD VALUE... FOR PRICE.I RECOMMEND THIS COMPANY.read more
    Mohamed Sheriff
    Mohamed Sheriff
    16:16 28 Jun 20
    Experience with HLB Hamt in audit experience is great pleasure. They deploy well qualified accounts team for audits.... And the amount of checking they perform give the management of the company confidence that internal controls are well in place. We are glad to see they have high standard of audit practices.read more
    218141 JOSEPH THOMAS
    218141 JOSEPH THOMAS
    16:20 23 Jun 20
    Professionally managed firm with commitment to the engagements taken. My company and its group are assigning our... requirements for last 12 years to HLB and we don’t have any negative remarks on any assignments.read more
    PMI
    PMI
    07:14 23 Jun 20
    In my opinion, HLB Hamt is one of the best professional firms in UAE after big4. Excellent client service, professional... and competent staff and timely delivery are their strength. Over the years they have developed the infrastructure and skill set to handle multiple verticals ie, audit, tax services, consulting, IT support etc.Wishing HLB Hamt team all the very best.read more
    RAVI CHOKSI
    RAVI CHOKSI
    08:28 21 Jun 20
    Thank you Team HLB hamt...Your internal auditing team put the good amount of time and inputs in helping the... organisation making considerable improvements throughout the organisational working structure and helps in building the better business.Thanks.read more
    Maharajan Subramaniam
    Maharajan Subramaniam
    18:17 06 Jun 20
    High-Performing IT Teams, I'm impressed with the knowledge level of their deputed staff, audit procedures, and... checklist adopted. Mr. Vimal especially understand the requirement and provide solution not only technical feasibility and also considered budgeting. We’re confident in their abilities.read more
    Mohammed L
    Mohammed L
    08:07 05 Jun 20
    We have been working closely with them on payroll services for quite sometime.They provide very professional... services,experts in domain and excellent support. Would recommend them.Cheers.read more
    ROY ROSHAN VIVIAN
    ROY ROSHAN VIVIAN
    06:32 04 Jun 20
    Very professional team. Vimal has always given us good solution advice for various Software and IT Infra projects. We... are very Extremely satisfied working with him and his team. Wishing them success.read more
    Basil Daniells
    Basil Daniells
    05:55 03 Jun 20
    I have worked with HLB as a partner of Sage for about 2 years, they were dedicated to the success of the partnership... and kept aligned with the business plan that was agreed between our two companies. They are always ready to go the extra mile for a customer and don’t shy away from challenging circumstances. Keep up the good work and wish you all the success in the future.read more
    Amar Kashyap
    Amar Kashyap
    19:28 02 Jun 20
    Team of well qualified and organised professionals. Their reports are not based on numbers first they will understand... their client and their business. They are highly recommended and trust worthy.read more
    Radz de Jesus
    Radz de Jesus
    16:03 02 Jun 20
    We're glad to have found HLB Hamt to conduct the IT audit and risk assessment for our organization. We have learned a... lot from their team during that first project. And since then, we've continued to be in touch with them. Mr. Vimal especially is very good at presenting technical concepts in simple yet interesting ways that non-IT and business people alike would easily catch. We are very happy with the professionalism and quality of service they provide. They leave their clients nothing short of satisfied. Highly recommended.read more
    Next Reviews
    js_loader

    Get in touch

    Whatever your question our team will point you in the right direction

    Start the conversation
    Get in touch
    x
    x

    Share to:

    Copy link:

    Copied to clipboard Copy