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GRATUITY & END OF SERVICE

Settlements calculated to the day — and evidenced

Exit carries the most money per transaction in UAE HR, which is why it produces the most disputes. eHRMS computes gratuity, leave encashment, notice pay and deductions from the actual record — then shows the article behind every line, on a settlement statement the employee signs.

  • Articles 51–53
  • 14-day deadline chased
  • DEWS & GPSSA
  • IFRS accrual

THE RULES

End-of-service, as the law writes it

UAE end-of-service rules as applied by eHRMS
ItemRule applied
Gratuity — first 5 years21 days' basic wage per year of service
Gratuity — beyond 5 years30 days' basic wage per year
CapTotal gratuity capped at 2 years' wages
BasisLast drawn basic wage; part-years pro-rated to the day
ForfeitureArticle 44 gross-misconduct scenarios flagged, with reasons shown
Leave encashmentBasic + housing over a 30-day month, encashable types only
Payment deadlineWithin 14 days of exit (Article 53) — tracked automatically
DIFC entitiesDEWS contributions (5.83% / 8.33%) instead of lump-sum gratuity

Every value sits in the statutory configuration, referenced to its article, and reviewed as regulations change.

THE EXIT WORKFLOW

From resignation letter to signed statement

  1. Record the exit

    Resignation or termination, notice period and last working day — the exit workflow starts immediately.

  2. Clearance, department by department

    IT, Finance, Admin and HR each sign off their own items: assets returned, dues cleared, accounts revoked.

  3. Auto-compute the settlement

    One click nets credits against debits and produces the itemised statement PDF for signature — with DEWS and GPSSA paperwork auto-generated.

  4. After exit

    Structured exit interview, experience and verification letters from templates, and an alumni record so future employment-verification requests take minutes.

Why HR teams sleep better

  • Real-time EOS calculator — quote a figure any day, not just at exit
  • Every separation scenario itemised and explained
  • Monthly accrual keeps finance ahead of the liability
  • Disputes answered with records, not recollections

FAQ

Questions we hear a lot

On the last drawn basic wage: 21 days per year for the first five years of service and 30 days per year after that, capped at two years' wages, per Articles 51–53 of the labour law. Part-years count to the day. Where Article 44 gross-misconduct forfeiture applies, the system flags it and explains why.

Credits: unpaid salary since the last payslip, leave encashment on basic + housing over a 30-day month for encashable types, and notice pay if owed. Debits: outstanding loans and advances, unreturned assets, and notice recovery if the employee owes it. The statement nets everything and produces a signed PDF.

Article 53 requires settlement within 14 days of exit — so a scheduled job chases the deadline from the moment the exit is recorded, and the compliance command centre shows every pending settlement with its countdown.

DIFC replaced lump-sum gratuity with DEWS — monthly contributions of 5.83% of basic up to five years' service and 8.33% beyond. eHRMS applies the right regime per entity automatically, and GPSSA handles nationals wherever they sit.

Yes — monthly gratuity accrual postings give you an IFRS-friendly liability figure per employee, so end-of-service stops being a surprise expense.

Bring a past settlement to the demo — we'll recalculate it live

Book a walkthrough and we'll take one of your real cases — a new hire, a payroll month, a visa renewal — and run it end to end in front of you. It takes about 45 minutes, and you'll leave with a clear yes or no.

Prefer to talk? Call +971 4 874 1144 or email info@globosoft.ae