UAE Final Settlement Checklist 2026
Everything to verify before you sign a full-and-final settlement · 8 min read ·
The short answer
Your UAE final settlement should include more than gratuity: unpaid salary, accrued leave pay, notice pay if applicable, approved reimbursements, and any legally permitted deductions.
Article 53 of Federal Decree-Law No. 33 of 2021 requires the employer to pay wages and other entitlements within 14 days from the end of the contract. Gratuity is the biggest item for many employees, but it is not the whole settlement.
FINAL SETTLEMENT ITEMS
What should be included in your UAE final settlement?
| Item | What to check |
|---|---|
| End-of-service gratuity | Calculated on basic salary only, after one year of continuous service, subject to the two-year cap. |
| Unpaid salary | Salary through the last working day, including any approved paid notice period. |
| Unused annual leave | Accrued leave days paid according to the legal and contractual basis. |
| Notice pay | Pay in lieu if either party waived or failed to serve the contractual notice period. |
| Reimbursements | Approved business expenses, commissions, or allowances that are contractually due. |
| Deductions | Only legally supported deductions, such as salary advances or approved loans. |
STEP BY STEP
How to audit your settlement before signing
- Calculate gratuity independently. Use your last basic salary, not total package, and deduct unpaid leave days from service.
- Compare leave balance. Ask HR for the leave ledger and check opening balance, earned days, used days, and encashment value.
- Confirm the last salary period. Make sure the final month is paid through your actual last working day.
- Review every deduction. Ask for written support for loans, advances, damages, or notice-period compensation.
- Keep proof. Save the settlement sheet, payslips, contract, resignation or termination letter, and bank transfer records.
Tip: calculate your estimated gratuity first with the free UAE gratuity calculator, then compare it line by line with HR's settlement sheet.
COMMON DISPUTES
Red flags in a final settlement
- Gratuity calculated on an older basic salary instead of the last basic salary.
- Housing, transport, or allowances included in leave pay but wrongly included in gratuity.
- Unexplained deductions labelled as visa costs, recruitment costs, or “company expenses”.
- A full-and-final form asking you to waive future claims before payment is received.
- Payment delayed beyond 14 days without a written explanation.
If the employer does not pay after the deadline, you can raise a labour complaint with MOHRE. For claims of AED 50,000 or less, MOHRE can issue final executive decisions under the current dispute process.
OFFICIAL REFERENCES