Staff dues on closure
We are closing. What do we owe our employees?
The situation
Employees are owed salary to the last day, notice pay where due, unused leave and gratuity if they have at least one year of service, within 14 days of contract end.
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
- Federal Decree-Law 33 of 2021 on employment relationships: Employer duties including wages and dues on contract end
What it means for you
Example: an employee with 3 years and AED 6,000 basic gets about AED 12,600 gratuity (63 days at AED 200) plus leave. Pay before cancelling visas and the establishment card.
What to do
- List each employee's dues.
- Pay through WPS.
- Get signed settlements.
- Cancel visas and labour cards.
We can do this for youCompany liquidation and deregistration: VAT and Corporate Tax deregistration, visa cancellation and licence cancellation: AED 4,000