[FAQ 1: Do I need to pay UAE end of service gratuity if an employee resigns?]?

[FAQ ANSWER: 50-75w. Direct answer with UAE-specific context regarding resignation vs termination under the new labour law.]

[FAQ 2: What is the MOHRE deadline for final settlement?]?

[FAQ ANSWER: 50-75w. Clear explanation with regulatory references.]

[FAQ 3: How does unpaid leave affect gratuity in AED?]?

[FAQ ANSWER: 50-75w. Explain the deduction of unpaid leave days from total service tenure.]

[FAQ 4: Is gratuity calculated on basic or gross salary?]?

[FAQ ANSWER: 50-75w. Clarify the basic salary rule and what allowances are excluded.]

[FAQ 5: Can SmallERP automate my startup's final settlements?]?

[FAQ ANSWER: 50-75w. Brief pitch on SmallERP's automated HR and payroll features.]

[FAQ 6: Are free zone gratuity rules different from mainland UAE?]?

[FAQ ANSWER: 50-75w. Address the alignment of free zone rules with mainland MOHRE regulations.] ## Conclusion [CONCLUSION: 100-150w. Wrap up the importance of compliance for UAE startups. Final push to automate HR and avoid manual spreadsheet errors.] [CTA: Start Free Trial → smallerp.ae/signup]

UAE End of Service Gratuity: Quick-Reference Guide for Startups

Name: SmallERP
Rating: 4.8 (650 reviews)
Author: SmallERP

Every Dubai startup founder remembers the panic of their first employee resignation. You've spent three years building your team, managing cash flow down to the last dirham, and suddenly your lead developer hands in their notice.

You wish them well, but then reality hits. You have 14 days to process their final settlement under UAE labor law. You pull up their contract and realize you haven't provisioned for their end of service gratuity. Their basic salary is AED 12,000, they've been with you for just over three years, and suddenly you need to find more than AED 35,000 in cash to clear their final dues.

If you calculate it wrong, you face MOHRE fines. If you delay payment, you risk a labor complaint that blocks your company's visa quota. For a growing SME, this isn't just an HR headache—it is a serious cash flow shock.

We see this constantly at SmallERP. Startups run their payroll on spreadsheets, ignore gratuity accruals, and get caught off guard when someone leaves. Let's break down exactly how to calculate end of service gratuity so you get the numbers right the first time.

[CTA: Start Free Trial → smallerp.ae/signup]

Understanding UAE End of Service Gratuity Rules

[AUTHORITY: 200-300w. Cite MOHRE and the latest UAE Federal Decree-Law on Labour Relations. Explain basic eligibility criteria for startups, emphasizing the shift in contract types and standard entitlements.]

Step-by-Step Guide: How to Calculate Gratuity

[STEP-BY-STEP: 300-400w. Break down the calculation process based on basic salary vs total salary, days per year of service (21 days for first 5 years, 30 days after), and contract types. Use clear bullet points.]

Practical AED Examples for Startups

[EXAMPLES: 300-400w. Provide 2-3 detailed scenarios. E.g., a Dubai tech startup employee leaving after 3 years vs 6 years. Show exact AED calculations for basic salary. Include a table comparing the two scenarios.]

Common Mistakes Startups Make with Final Settlements

[MISTAKES: 250-300w. Discuss confusing basic vs gross salary, ignoring unpaid leave days in the tenure calculation, and delaying payment beyond the MOHRE mandated deadline.]

[CTA: Use the SmallERP HR Module → smallerp.ae/features/hr]

How SmallERP Solves Gratuity Calculations

[SMALLERP: 200-250w. Explain how SmallERP automates end-of-service settlements, tracks basic salary accurately, and generates MOHRE-compliant reports instantly, saving startups time and avoiding fines.]

HRGratuityStartupsMOHREPayroll