Estimate gratuity and settle a leaver

This page applies only to organisations whose country is the United Arab Emirates. Kluvan works the same everywhere without it.

Under Federal Decree-Law 33 of 2021, a UAE employee with at least one year of service earns an end-of-service gratuity. Kluvan estimates it from the employee file, then builds the final settlement: the salary to the last day, unused leave, notice, the gratuity, loans still owed and items not returned.

Before you start

• HR must be switched on, and you need the HR right Salaries and payroll.
• The person's file needs their basic salary, joining date and contract. For a part-timer, set Part-time hours (% of full time).

Steps

Estimate the gratuity

1. Open HR → People and open the person's file. The End-of-service estimate card shows the gratuity today.
2. Select Work it out for a leaving date.
3. Enter the Last working day and any Unpaid days of absence, then select Work it out.
4. Read the result: Service counted, Daily basic wage (basic ÷ 30), 21 days a year for the first five years, 30 days a year after, the cap of two years' basic, the Gratuity (estimate) and the unused annual leave paid out.

Make the final settlement

5. On the person's file, select Final settlement.
6. Enter the Last working day and the Notice days. Choose whether The notice is paid in lieu (the employer waives it) or deducted (the person did not serve it).
7. Add the value of any Items not returned and say Which items.
8. Choose Why the service ends and check the Contract.
9. Select Work it out and check each line and the Settlement total.
10. Select Make the settlement run. The file is marked as left on that day and a settlement run opens as a draft.
11. Review the run, change any line with a reason, approve and finalise it like any payroll run. Print the Settlement statement for both sides to sign.

Good to know

• The gratuity is an estimate. Confirm it with your accountant or MOHRE before you pay. The figures are published figures as of a stated date, not legal advice.
• The estimate uses the last basic salary only; allowances are not counted. Unpaid absence does not count as service. Under one year of service there is no gratuity.
• For service before 2 February 2022, a resignation from an unlimited contract is paid at the old law's share (one third after one to three years, two thirds after three to five).
• A part-timer's days are scaled by their contracted hours.
• The notice suggested comes from the end-of-service table: 30 days, at most 90. You change the table under End of service in HR → Payroll → Payroll rule tables.
• Loans and advances still owed come from the staff ledger and are taken back in the settlement run.
• For salary files and pensions, see Pay salaries with a WPS file. For the pack itself, see United Arab Emirates.