UAE Full & Final Settlement: The Complete 2026 Guide

What is a "full and final settlement" in the UAE?

When your UAE employment ends — whether you resign, are terminated, or your fixed-term contract simply expires — your employer owes you a "full and final settlement": every payment you're legally entitled to for the time you worked, calculated as of your last working day. Under mainland UAE law (Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations), this settlement is made up of several distinct parts, and understanding each one helps you check that what lands in your bank account is actually correct.

The five parts of a UAE final settlement

1. End-of-service gratuity — for anyone who has completed at least one year of continuous service, calculated on basic salary (see the gratuity law breakdown below).
2. Unused annual leave, encashed — any earned annual leave days you haven't taken are paid out at your basic daily wage.
3. Pending salary — any days you already worked but haven't been paid for yet.
4. Notice-period pay — if your employer ends your contract without giving you the notice period stated in your contract (commonly 30 to 90 days), they owe you pay in lieu of that notice.
5. Any contractual extras — such as an annual flight ticket or repatriation allowance, only if your contract specifically promises it.

From this total, your employer can legally deduct documented amounts you owe them — for example an outstanding personal loan, a salary advance, or the cost of company property you didn't return.

How long do you have to wait to be paid?

Under UAE labour law, your employer must pay your full and final settlement within 14 days of your last working day. This is a strict statutory deadline, not a guideline — it applies whether you resigned or were terminated, and it applies regardless of company size.

What if my employer is late or pays the wrong amount?

First, ask HR directly and in writing (email is best, so there's a record) for a breakdown of how your settlement was calculated — this alone resolves many honest payroll mistakes. If the 14-day deadline passes with no payment, or the breakdown clearly doesn't match the law:

• File a labour complaint with the Ministry of Human Resources & Emiratisation (MOHRE) — via the MOHRE smart app, the 80060 hotline, or in person at a Tas'heel/typing centre.
• MOHRE will first attempt conciliation between you and your employer.
• If that fails, your case is referred to the Labour Court, which can order payment of the outstanding amount.
• Keep your employment contract, salary slips, and any correspondence — these are exactly what MOHRE and the court will ask for.

Frequently asked questions