UAE Gratuity and Salary Claim After Visa Cancellation: What Is Still Owed?

Written and edited by the Visa Advice Hub Editorial Team.

Editorial Note: This guide was prepared by Visa Advice Hub using official sources listed below. It is reviewed for plain-English clarity, document steps, and practical action points for migrant workers and expats. It is for general information only and is not legal, immigration, financial, or insurance advice.

Your employer cancelled your visa last week. HR gave you a single number — “full and final settlement” — and asked you to sign. You are not sure whether the gratuity was calculated correctly, whether your unused leave was included, or whether you are owed notice-period pay. Before you sign anything, this guide walks you through each of the four amounts that UAE labour law says you are owed, shows you the exact formulas, and explains how to file a single MOHRE complaint if any line is short or missing.

Last updated: June 2026 | Sources: UAE MOHRE, ICP, Federal Decree-Law No. 33 of 2021

Quick Answer

Final settlement = unpaid salary + gratuity + unused leave + notice pay (if waived). Each is a separate calculation.
Gratuity formula: 21 days basic / year for first 5 years, 30 days basic / year after that, capped at 2 years’ total pay.
Leave encashment: (basic salary / 30) × unused days, calculated on basic salary only.
All four lines must be paid within 14 days of employment end under Federal Decree-Law No. 33 of 2021, Article 51.
MOHRE accepts one complaint covering all four lines; you do not need separate cases.

Who this guide is for

UAE workers whose visa was cancelled with one or more of the following unpaid: last month’s salary, end-of-service gratuity, accrued leave days, or notice-period pay — and who want to calculate each line so they know exactly what to claim at MOHRE.

Why this guide exists

Employers often pay one line and omit another — usually paying salary but omitting gratuity, or paying gratuity but capping leave encashment incorrectly. Workers who file without itemising lose visibility. This guide walks through each line’s formula, the Labour Law article behind it, and how to combine them into a single MOHRE complaint.

When a UAE visa is cancelled, the employer owes four separate amounts under Articles 29 and 51 of the Labour Law: salary up to the last day worked, end-of-service gratuity, encashment of unused annual leave, and notice pay where applicable. Each has its own formula. This guide walks through the calculations one by one and shows how to combine them in a MOHRE complaint.

This article is for general information only and is not legal advice. Rules can change. Always confirm with MOHRE or a qualified legal professional.

The Four Lines That Must Be Settled

Article 51 of Federal Decree-Law No. 33 of 2021 defines the final settlement as a single payment composed of four lines. The employer must pay the total within 14 days of the employment end date. Each line is calculated separately and either is fully owed or partially owed depending on the circumstances.

Final-month salary. Pro-rated to the last day worked.
End-of-service gratuity. Calculated from total continuous service.
Unused annual leave encashment. Cash equivalent of remaining leave days.
Notice-period pay. Owed if the employer terminated without serving the contractual notice.

Line 1: Final-Month Salary

Calculated to the exact last day worked. Formula:

(Monthly salary / 30) × days worked in the final month

If you worked 17 days of a 30-day month at AED 6,000 monthly, the final-month salary is AED 3,400. The “monthly salary” here is the full contractual monthly amount, not just basic — allowances paid monthly are included.

Line 2: End-of-Service Gratuity

Article 51 sets the formula:

21 days basic salary per year for the first 5 years of continuous service
30 days basic salary per year for each year thereafter
Total gratuity capped at two years of total pay
No gratuity is owed if service is under one year
Partial years are calculated pro-rata once the one-year minimum is crossed

Worked example. Basic salary AED 5,000, total service 6 years 4 months:

First 5 years: 5 × 21 days × AED 5,000 / 30 = AED 17,500
Sixth year: 30 days × AED 5,000 / 30 = AED 5,000
Additional 4 months: (4/12) × 30 days × AED 5,000 / 30 = AED 1,667
Total gratuity: AED 24,167

For deeper rules around partial-year accrual, contract type differences, and the 2-year cap, see our guide on UAE end-of-service gratuity calculator and rules.

Line 3: Unused Annual Leave Encashment

Article 29 sets the leave entitlement at 30 calendar days per year after the first year of service (2 days per completed month between 6 and 12 months). Unused days are converted to cash on the basic salary basis:

(Basic salary / 30) × unused leave days

Basic salary AED 5,000, unused leave 18 days: (5,000 / 30) × 18 = AED 3,000. Allowances are excluded from this calculation unless the contract explicitly extends to leave days.

Line 4: Notice-Period Pay

Under Article 43 the standard notice period is 30 to 90 days. If the employer terminates and waives your notice, they owe notice-period pay calculated as your full monthly salary multiplied by the waived months. If you resigned and the employer waived your notice, they still owe the pay because the law treats the choice as theirs.

If you served the notice but the employer dismissed you mid-notice, the remaining days of the notice are owed in cash.

Combining the Four Lines in One MOHRE Complaint

A single MOHRE complaint can cover all four lines. Use Wage / Final Settlement Dispute as the complaint category and itemise the lines in the description. For information on what happens after visa cancellation and the grace period, see our guide on UAE grace period after visa cancellation. If your employer has also stopped salary payments prior to cancellation, read what to do when your UAE employer is not paying salary.

What If the Employer Offers a Single Lump Sum?

Some employers, especially smaller companies, propose a single round-number settlement that they describe as covering “everything”. Treat any such offer with care. A lump-sum proposal that is lower than the itemised total is a partial payment by another name, and accepting it without a stamped MOHRE settlement closes the case for any later recovery. Always insist on the itemised breakdown — even if the final agreed total is identical, the line-by-line acknowledgement preserves your record for any future dispute. Workers who accept an unitemised lump sum and later notice the gratuity was understated have very limited recourse, because the employer’s defence becomes “you signed for the full settlement”. The MOHRE complaint route remains open up to 12 months under Article 8, but unitemised settlements weaken the file considerably.

Documents Needed to Calculate Each Line

Document	Why You Need It	Where to Get It
Signed employment contract	Establishes basic salary, allowances, leave entitlement, and notice period	Your own copy or MOHRE contract registry
Joining date confirmation	Required to compute years of continuous service for gratuity	Contract, first WPS payslip, or HR record
Last 6 WPS payslips	Confirms basic salary used in gratuity and leave formulas	WPS app, HR portal, or bank app
Leave balance statement	Counts unused days for the encashment line	HR portal, employee self-service, or written request to HR
Termination or resignation letter (with date)	Anchors the employment-end date and notice-period status	HR, your own files
Visa cancellation receipt	Starts the 14-day Article 51 settlement clock	Employer or ICP record
Final settlement statement from the employer	Shows their itemised proposal so you can compare line by line	HR — request in writing before signing anything

Step-by-Step: Calculating What Is Owed

Pull your basic salary from the contract or latest WPS payslip. Do not include housing or transport allowances.
Calculate joining date to employment-end date in years and months. Convert months to fractions of a year (e.g. 4 months = 0.333).
Apply the gratuity formula: 21 days basic × first 5 years; 30 days basic × additional years. Pro-rate the final partial year.
Apply the leave formula: (basic / 30) × unused days. Check the leave balance statement for accuracy.
Calculate the final-month salary: (monthly salary / 30) × days worked. Use full monthly salary including paid allowances.
Add notice-period pay if the employer waived your notice. Use full monthly salary × notice months.
Sum all four lines. Compare against the employer’s final settlement statement and flag every line that does not match.

What Usually Happens Next

Request a written final settlement breakdown from HR before signing the visa cancellation form.
Compare HR’s breakdown line by line against your own calculation.
If lines match and payment is made within 14 days, the employment ends cleanly.
If any line is short, do not sign the acknowledgement until corrected. Message HR with the article reference and the corrected amount.
If HR refuses to correct, file the MOHRE complaint with the four-line itemisation and your calculation sheet attached.
MOHRE conciliation usually concludes in 30-45 days; the binding decision or court referral follows within another 30-45 days for larger claims.

Common Mistakes Workers Make

These are the errors that most commonly reduce or eliminate the amount workers actually recover when claiming after visa cancellation.

Using gross salary instead of basic for gratuity and leave. Both formulas use basic salary only. Allowances inflate the claim unfairly and weaken the case. Check your WPS payslip and identify the “Basic Salary” line separately before calculating.
Forgetting partial-year gratuity after the one-year mark. Article 51 entitles you to pro-rata gratuity for partial years after the one-year minimum is reached. A worker with 3 years and 8 months of service is owed gratuity for the full 3 years plus 8/12 of a year, not just 3 full years.
Combining notice pay into the salary line. Notice pay is a separate line. MOHRE treats it as a distinct breach if waived without payment. Filing it as part of salary unpaid can reduce the visibility of the claim and result in underpayment.
Accepting a single ‘total settlement’ without itemisation. Without line-by-line numbers, you cannot tell which amount is correct or short. Once you sign an unitemised settlement, recovering a shortfall later becomes very difficult even through MOHRE.
Counting calendar leave days twice. Unused leave is paid only in the encashment line, not in the final-month salary. Double counting is rejected by MOHRE and weakens your complaint credibility.
Assuming gratuity is automatic for any termination. No gratuity is owed if service is under 12 months. For service over 12 months, partial-year pro-rata applies. Workers terminated within their first year are often surprised to learn this — but unused leave and final-month salary still apply.
Missing the 12-month MOHRE complaint window. Under Article 8, complaints must be filed within 12 months of the date the amount became due. Workers who wait too long, hoping the employer will pay voluntarily, sometimes find the window has closed by the time they decide to act.

Frequently Asked Questions

Is gratuity calculated on basic salary or total package?

Basic salary only, under Article 51. Allowances, bonuses, and overtime are excluded. Verify your basic salary on the WPS payslip line labelled ‘Basic Salary’.

Does my final settlement include my Emirates ID or visa cancellation cost?

No. Visa-related fees are the employer’s cost under Article 6 and cannot be deducted from your final settlement. If the employer deducts these, file a MOHRE complaint.

What if I worked exactly 11 months — is there any gratuity?

No gratuity is owed under one year of service. Unused leave (2 days per completed month after 6 months), final-month salary, and notice pay still apply.

Can the employer reduce my gratuity for poor performance?

Only in narrow Article 44 cases (gross misconduct dismissal). Routine performance issues do not justify gratuity reduction. If the employer claims this, request the documented misconduct findings.

How is gratuity calculated if I had a salary increase mid-contract?

Gratuity uses the most recent basic salary at the end of employment. Earlier lower salaries do not reduce the entitlement.

Is my unused sick leave included in encashment?

No. Sick leave under Article 31 is not encashable. Only unused annual leave (Article 29) is converted to cash.

What happens if my employer has already left the UAE or closed down?

MOHRE can still register the complaint and issue a decision. Enforcement of the decision against an absent or dissolved employer may require referral to the civil courts. If the employer had Wage Protection System (WPS) coverage, MOHRE can sometimes facilitate payment through that channel. File as early as possible to preserve the 12-month Article 8 window.

Can I claim gratuity if I resigned voluntarily?

Yes. Under Federal Decree-Law No. 33 of 2021, voluntary resignation no longer automatically forfeits gratuity. Workers who resign after completing one year of service are entitled to the full gratuity calculation. The old rule that reduced gratuity for early resignation was abolished by the 2021 law.

Official Sources Used in This Guide