UAE: How Soon Must Employer Give Full, Final Payment To Employee After Resigning?

(MENAFN- Khaleej Times) Published: Sun 12 May 2024, 8:27 AM

Last updated: Sun 12 May 2024, 8:33 AM

Question: I am planning to resign and leave the UAE next month. Legally speaking, how soon must companies give the full and final settlement? How soon after resigning do I need to exit the country?

Answer: Pursuant to your queries, it is assumed that you are employed by a mainland company. Therefore, the provisions of federal Decree-Law No. 33 of 2021 on the Regulation of Employment Relations, Cabinet resolution No. 1 of 2022 on the Implementation of Federal Decree-Law No. 33 of 2021 regarding the Regulation of Employment Relations, and Federal Decree-Law No. 29 of 2021 Regarding Entry and Residence of Aliens are applicable.

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In accordance with Article 53 of the Employment Law, the employer must settle all financial dues owed to the worker within 14 days from the expiration date of the contract. These dues include an employee's salary, as well as other compensation explicitly mentioned in the contract. It will also include outlined in relevant resolutions or established by-laws of the contract or the employing establishment.

The Article 53 of the Employment Law reads:

“Article 53- Paying the Workers' Entitlements at the End of the Contract Term

The employer shall pay to the worker, within (14) fourteen days from the end date of the contract term, his wages and all his other entitlements stipulated herein and resolutions issued for its implementation, the contract or the establishment's by-laws.”

Furthermore, Article 7 of the Cabinet Resolution No. 1 of 2022 provides for Conditions, Rules and Procedures for Issuing, Renewing and Cancelling Work Permits. An employer should initiate the process of cancelling the work permit of an employee with the Ministry of Human Resources & Emiratisation (MoHRE) as mentioned in Article 7(3) of the Cabinet Resolution No. 1 of 2022, which states,“Procedures for cancelling work permits:

• a. The submission of an application for cancelling the work permit shall be through the channels specified by the Ministry:
• b. Completion of the required data and attached documents.
• c. Payment of the fines for delays in issuing the work permit or for failure to renew it, if any.
• d. Acknowledgment by the establishment of granting the worker all of his entitlements.
• e. Any other conditions determined by resolution of the Minister or whomever he delegates.”

Moreover, in accordance with Article (19) of Federal Law No (6) for 1973 Concerning Immigration and Residence As amended By virtue of Law 7 of 1985, Law 13 of 1996 And Federal Decree- Law No. 17 of 2017 provides that the individual has to leave after the revocation of his residency which reads as:

“Foreigners who have obtained residence license shall be subject to the provisions of Article (11) herein. They must leave the country upon the revocation of his residence permit or the expiration of his term.”

In addition, Article 11 of the Federal Decree-Law No. (29) of 2021 Regarding Entry And Residence Of Aliens provides for the consequences for individuals whose visas or residence permits have been cancelled or have expired without renewal. It states that if someone remains in the country illegally after their visa or residence permit has been cancelled or expired, they will be subject to an administrative fine for each day they continue to reside illegally.

“Article 11. Cancelling And Expiring Of Visa Or Residence

Any Alien whose visa or residence permit has been cancelled or whose residence has expired with the expiration of the period of the visa or residence permit, and does not initiate renewal - in cases in which this is permissible – or if he did not leave the State within the periods determined by the Executive Regulations of this Decree-Law, an administrative fine shall be imposed on him for each day in which he resides illegally in the State as of the date of the expiry of these periods, and the value of this fine shall be determined by a decision of the Council of Ministers.”

However, it should be noted that in the UAE once a residence visa is cancelled, you are still allowed to stay in the UAE until the period mentioned in your visa cancellation document. This document is issued by the General Directorate of Residency & Foreigners Affairs (GDRFA) Dubai or Federal Authority for Identity, Citizenship, Customs & Port Security (ICP) in the UAE residency cancellation document.

Based on the aforementioned provisions of law, you may still reside in the UAE upon cancellation of your work permit and UAE residency visa. Make sure to change your residency status within the grace period mentioned in your UAE residency visa cancellation document.

Likewise, your employer needs to pay you the salary and end-of-service benefits within 14 days from the date of cancellation of your work permit, as per required by law.

In the event, that your employer does not pay your end of settlements within 14 days from the date of cancellation of your work permit, you may consider filing a complaint against your employer with MoHRE.

Ashish Mehta is the founder and Managing Partner of Ashish Mehta & Associates. He is qualified to practise law in Dubai, the United Kingdom and India. Full details of his firm on: Readers may e-mail their questions to: ... or send them to Legal View, Khaleej Times, PO Box 11243, Dubai.

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