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
- Confirm service is under 1 year.
- Compute salary and leave due.
- Pay final dues within 14 days.
- 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