UAE Labour Law: The 14-Day Rule for Gratuity and Final Settlement
Under Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations, UAE employers are under a statutory obligation to settle an employee’s end-of-service entitlements within a clearly defined timeframe. One of the most critical protections afforded to employees under this law is the 14-day rule.
What Is the 14-Day Rule?
The 14-day rule mandates that upon termination or resignation of employment, the employer must pay the employee’s final settlement, including end-of-service gratuity, within 14 calendar days from the date the employment relationship ends or the employee’s last working day, whichever is applicable.
This rule applies irrespective of whether the employment ended due to resignation, termination, or expiry of contract, provided the employee is legally entitled to gratuity.
What Does the Final Settlement Include?
- The final settlement payable within the 14-day period typically includes:
- Outstanding salary up to the last working day
- End-of-Service Gratuity, calculated on the employee’s basic salary
- Payment in lieu of unused annual leave
- Any other contractual or statutory dues owed to the employee
Failure to pay any of these components within the prescribed period constitutes non-compliance with UAE Labour Law.
How Is the 14-Day Period Calculated?
- The period is calculated in calendar days, not working days.
- Weekends and public holidays are included.
- The countdown generally begins from the employee’s last working day or the effective date of termination stated in the employment contract or termination notice.
Legal Consequences of Non-Compliance
Employers who fail to settle employee dues within the 14-day period may face:
- Complaints filed with the Ministry of Human Resources and Emiratisation (MOHRE)
- Administrative penalties and finesLabour court proceedings for recovery of dues
- Potential compensation claims for unjustified delay
- The law is designed to prevent undue hardship to employees who rely on timely payment of their entitlements after separation from employment.
Employee Remedies in Case of Delay
If an employer fails to comply with the 14-day rule, the employee may:
- Issue a formal written demand to the employer
- File a complaint with MOHRE or the relevant free zone authority
- Initiate labour proceedings to recover unpaid gratuity and other dues
- Legal documentation, employment contracts, salary slips, and termination notices play a crucial role in enforcing these rights.
Conclusion
The 14-day rule reflects the UAE legislature’s clear intent to ensure fairness, transparency, and financial security for employees at the end of their employment. Both employers and employees should be fully aware of their rights and obligations to avoid disputes and legal exposure.
If you are facing delay or denial of gratuity or final settlement, obtaining timely legal advice is essential to protect your rights under UAE law.
