Employee with less than one year

A staff member is leaving after 10 months. Do we owe gratuity?

The situation

No. Gratuity needs at least one year of continuous service.

The law

  • Art 51, Federal Decree-Law 33 of 2021: End of service gratuity: 21 days basic wage a year for the first 5 years, 30 days after, capped at 2 years' wage

What it means for you

You still owe final dues such as unpaid salary, pro-rated leave and any notice pay. Example: 10 months of service means no gratuity, but accrued leave days must be paid.

What to do

  1. Confirm service is under 1 year.
  2. Compute salary and leave due.
  3. Pay final dues within 14 days.
  4. Cancel the work permit properly.

We can do this for youPayroll compliance: WPS salary runs, end of service gratuity, final settlement and payroll records: AED 95

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