What is End of Service (EOS) Benefit?

End of Service (EOS) benefit is a comprehensive entitlement that employees receive upon the conclusion of their employment. While gratuity in UAE is a major component, EOS may also include unpaid salary, leave encashment, and other dues as part of the final settlement. It serves as both a financial reward and a legal obligation under UAE Labour Law, particularly the UAE Labour Law Gratuity provisions. Many private-sector employers now use tools like HR software UAE businesses adopt to streamline the EOS process and ensure full compliance.

Who is eligible for End of Service benefits?

Employees in the UAE who have completed at least one year of continuous service under a valid limited-term employment contract are eligible for End of Service benefits. Eligibility and calculation may vary slightly depending on the contract duration and reason for leaving the organization. These distinctions are often tracked automatically through an HR management system UAE employers use to reduce errors.

When are End of Service benefits paid?

End of Service UAE benefits are typically paid upon the termination, resignation, or completion of the end of service contract. Employers are required to process the final settlement, which includes salary dues, unused leave, and gratuity, as soon as the employment ends. This should ideally be done within 14 days, in line with final settlement UAE Labour Law.

What are the essential components of an End of Service benefit?

The End of Service payout usually includes:

• Last Basic salary (excluding allowances).
• Length of continuous service.
• Reason for leaving (resignation vs. termination).
• Applicable deductions (e.g., unpaid loans, damage costs).
• Gratuity in UAE, as per the Dubai Gratuity Law or broader UAE Gratuity Law.

How to calculate End of Service/ Gratuity?

The End of Service Calculator UAE typically follows this standard structure:

• For the first 5 years of service : 21 days' basic salary per year.
• After 5 years : 30 days' basic salary for each additional year.
• The total gratuity should not exceed two years' basic salary.

If a worker has served for less than 1 year, he is not entitled to any gratuity pay. Gratuity may be reduced in cases of early resignation, especially under a limited contract, and can be adjusted for unpaid leaves or disciplinary dismissals. You can use an official End of Service Calculator UAE tool to estimate your exact entitlements based on your service length and contract type.

Frequently Asked Questions

Do I get gratuity if I resign before completing one year?

No, under the UAE Labour Law Gratuity rules, employees are not entitled to gratuity in UAE if they resign before completing one full year of service.This rule applies across all business sizes and is a standard part of the HR process for final settlements.

How is gratuity calculated in the UAE?

The EOS benefit is calculated using your last basic salary (excluding bonuses and allowances) and total years of service. As part of the broader HR process, many companies use tools that factor in leave tracking to ensure accuracy. The formula follows UAE Gratuity Law, granting 21 days’ pay for each of the first five years, and 30 days thereafter.

Can an employer deduct amounts from my End of Service benefit?

Yes. Employers may deduct outstanding loans, damage compensation, or other liabilities from the employee’s final settlement. However, these deductions must comply with final settlement UAE Labour Law provisions.

What factors affect the calculation of End of Service benefits?

Several factors impact the calculation of EOS benefits, including the length of service, the employee’s basic salary, and the reason for contract termination. Additionally, any unpaid leave or outstanding dues can influence the final amount. Many employers use a HR software to automate these calculations and ensure accuracy.

Are End of Service benefits applicable to part-time or temporary workers?

Part-time and temporary workers are entitled to End of Service UAE benefits on a prorated basis. The calculation considers actual working hours and duration of employment. Eligibility and payout are determined according to UAE Labour Law Gratuity provisions.