What a final settlement is
When a job ends, the employer owes everything that has been earned and not yet paid. People call the total the final settlement, the clearance or the full and final. It is not one entitlement but a list of separate items, each worked out in its own way, and the amount in the letter you are asked to sign is the sum of them less any lawful deductions.
The reason to understand the list is simple. If you only look at the total, you cannot tell whether an item is missing or wrongly calculated. If you check each line, you can.
The items, one by one
| Item | How it is worked out | Where to check |
|---|---|---|
| Unpaid salary | Pay for the days you worked and were not paid, including the final partial month | Your contract and payslips |
| Gratuity | Basic salary and length of service, if you completed one year | The gratuity calculator |
| Unused annual leave | Leave you earned and did not take, paid in cash | Your leave record and contract |
| Notice pay | Depends on who ended the contract, the notice you gave or were given, and your contract | Your contract |
| Return ticket | Only where your contract provides it | Your contract |
| Deductions | Amounts you lawfully owe, such as a loan or advance | Loan papers and payslips |
Gratuity
If you have completed at least one continuous year, you are owed gratuity. It is based on basic salary only: 21 days of basic pay for each of the first five years and 30 days for each year after that, capped at two years of basic salary. The guide on how UAE gratuity works explains the formula, and resigning does not reduce it under the current law.
Unused annual leave
Annual leave that you have earned but not taken is paid in cash when you leave, including leave that built up during your final months of work. Published guidance says the payment is worked out on your basic salary and not on your total pay, so one day of leave is your basic salary divided by 30. Check how your own contract values leave, because a contract can be more generous.
Count the days yourself before you look at the settlement. Start with the leave you are entitled to each year, subtract what you have taken, and include the part of the current year that has built up.
A worked example
An employee on a basic salary of AED 10,000 leaves after six years, from 1 January 2019 to 31 December 2024, with 12 days of unused leave. One day of pay is AED 333.33. Five years at 21 days give AED 35,000 and the sixth year at 30 days gives AED 10,000, so the gratuity is AED 45,000. Twelve days of leave at AED 333.33 is AED 4,000, which makes AED 49,000 before unpaid salary and any deductions.
The unpaid salary for the final month comes on top of that, and so does any notice pay owed under the contract. If the settlement you are offered is lower than this by a large amount, ask for the working.
Gratuity calculatorEnter your own salary, dates and unused leave days to get the gratuity and leave lines.Deductions
An employer can deduct amounts that you owe by law or under a court order, and the executive regulations extend this to things such as an outstanding loan or an overpayment. A deduction should be one you can identify and that is documented. A deduction you do not recognise is a reason to ask for the paperwork before you sign.
The 14-day deadline
The law requires the employer to pay what is owed within 14 days after the end of the contract. If your dues are late, keep a record of the date your contract ended and the date you were paid, because the delay is part of any complaint.
A checklist before you sign
- Write down your joining date, last working day and basic salary from your contract.
- Work out your gratuity with the calculator, and note the unused-leave days you expect.
- Ask the employer for a written settlement that lists every item and every deduction.
- Compare it line by line with your own figures, and ask for the working on any difference.
- Check the notice period and notice pay against your contract.
- Check whether your contract promises a return ticket or other benefit.
- Keep copies of the contract, the settlement and proof of payment.
- Do not sign a statement that you have received everything until you have received it.
If you are not paid or you disagree
For private-sector employees on the mainland, the usual first step is a complaint to the Ministry of Human Resources and Emiratisation, which mediates between the employee and the employer. If that does not resolve it, the dispute can go to the labour courts. Free-zone employees may need to use their free zone’s own authority or courts. For a significant sum, take advice from a labour lawyer.
Common questions
Is unused leave paid on basic salary or total salary?
Do I get a return ticket when I leave?
How long does the employer have to pay?
Can I be paid in instalments?
Sources
Reviewed on 18 Oct 2026 against the published sources below. Laws and prices change, so check the current position before you rely on a figure.
- Gulf News: UAE annual leave, can you claim unused days when you resign?
- Khaleej Times: Gratuity in UAE, will leave without pay affect final settlement calculations?
- Gulf News: Can my employer deduct from my end-of-service payments?
- Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations, Articles 29, 51 and 53
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This guide is general information, not legal, financial or religious advice. Figures are estimates worked out from the sources above and may differ from what applies to you. See the disclaimer. Found a mistake? Tell us.