End-of-Service Gratuity After Death in the UAE: What the Family Is Owed

When an employee dies in the UAE, their employer has to pay the family everything the job still owed: unpaid salary, pay for unused annual leave, any other money due under the contract, and the end-of-service gratuity. Under the federal Labour Law this must be handed over within 10 days of the death, or of the employer learning about it. If the employee named a family member in writing, that person receives it. If the employer cannot pay the family in time, the money goes into a trust account at the Ministry of Human Resources and Emiratisation (MOHRE) instead of staying with the company.

Most families only learn this when they are already dealing with a funeral, a frozen bank account and a dozen phone calls. This guide sets out what is owed, who gets it, and what to do if it does not arrive.

What is the family entitled to when an employee dies?

Death ends the employment contract automatically (Article 42 of Federal Decree-Law No. 33 of 2021, the Labour Law). From that point, the employer owes:

• Final salary up to the date of death, plus any earned overtime, commission or allowances.
• Pay for accrued annual leave that was not taken, calculated on the basic wage (Article 29).
• The end-of-service gratuity for a foreign employee with at least one year of continuous service (Article 51).
• Anything else in the contract or company policy, such as a bonus already earned or a group life insurance benefit the employer arranged.
• Repatriation of the body. If the family asks, the employer pays the cost of preparing and transporting the body to the home country or place of residence (Article 15(3)).

If the death was caused by a work injury or occupational disease, the family is also entitled to compensation equal to 24 months of the employee's basic wage, at least AED 18,000 and no more than AED 200,000, on top of the gratuity and other dues (Article 37(3)).

How is the gratuity calculated after death?

The same way as for any other end of service. Article 51 gives a full-time foreign employee:

• 21 days of basic wage for each of the first five years of service; and
• 30 days of basic wage for each year after that,
• with a pro-rata amount for part of a year, as long as one full year of continuous service was completed.

The total cannot exceed two years' wage, and unpaid days of absence do not count. So someone who worked seven years earned 5 × 21 + 2 × 30 = 165 days of basic wage. The calculation uses the last basic salary, not the full package, which is why families are often surprised that the figure is lower than they expected.

If the employee had not yet completed one year, the federal law gives no gratuity, but the final salary and leave pay are still owed.

Who receives the money?

Article 15(2) lets an employee name, in writing, a family member who should receive their dues if they die. Where that nomination exists, the employer pays that person.

Where it does not, or the employer cannot reach the family, MOHRE's Ministerial Resolution No. 720 of 2023 closes the gap. It requires the employer to cancel the deceased worker's work permit, pay the nominated family member within 10 days, and, if it cannot hand the money to the family or those entitled to it in that time, deposit the dues in MOHRE's trust account, with the Ministry calculating the amount. An employer that does not settle can have its establishment file administratively suspended until it proves payment (report in Aletihad).

One point families often miss: being the person who collects the money is not the same as being the only person entitled to keep it. How the money is shared among heirs depends on the inheritance rules that apply to the estate. If relatives might see it differently, agree the position early or take advice before spending it.

What if the employer does not pay within 10 days?

Start with a polite written request to HR, attaching the death certificate and asking for a breakdown of the final settlement. Many delays are simply an employer waiting for the right documents.

If that does not work, the law gives the family a route:

• Complain to MOHRE. Article 54, as amended by Federal Decree-Law No. 9 of 2024, lets the employer, the worker or "any of their beneficiaries" bring a dispute to the Ministry. MOHRE tries to settle it, decides claims up to AED 50,000 itself, and refers larger unsettled claims to the court.
• Watch the deadline. A claim for rights under the Labour Law cannot be heard more than two years after the employment relationship ended, which here means two years from the death.
• Court fees. Labour claims, including requests filed by workers' heirs, are exempt from judicial fees where the amount does not exceed AED 100,000 (Article 55).

What if the family lives outside the UAE?

This is the most common situation for expat families, and it is where paperwork slows everything down. A spouse in Manila, Lahore or Lyon usually cannot fly to Dubai to sign forms, collect a cheque and chase MOHRE.

The practical answer is usually a power of attorney from the family, or from the heirs together, to one trusted person or a lawyer in the UAE. For it to be accepted here, a document signed abroad generally has to be notarised in that country, legalised through the UAE embassy or the route that country uses, attested by the UAE Ministry of Foreign Affairs once it arrives, and translated into Arabic. Our guides to making a power of attorney from outside the UAE and MOFA document attestation explain each step.

Ask the employer, MOHRE or the court exactly what wording and documents they need before the family signs anything abroad. Redoing a legalised document costs weeks.

How does this fit with the rest of the estate?

The gratuity is usually the first money a family can actually reach. The deceased's bank accounts are normally blocked until a court document says who can deal with them; we explain that in what happens to a bank account after death in the UAE. Loans and credit cards are paid from the estate, not from the family's own pockets, as covered in what happens to debt after death in the UAE.

For a non-Muslim with assets in Dubai, a registered DIFC will and a clearly chosen executor make the wider estate far easier to handle. They work alongside the written nomination at work, not instead of it.

Who this guide does not cover

These rules come from the federal Labour Law, which covers private-sector employees on the mainland and in most free zones. Employees in the DIFC and ADGM work under their own employment laws. UAE nationals receive end-of-service benefits under the pensions and social security legislation (Article 51(1)), and government employees have their own rules.

A short checklist for families

1. Tell the employer in writing and send the death certificate.
2. Ask HR whether a family member was nominated to receive the dues, and for a written breakdown of salary, leave pay, gratuity and any insurance.
3. Ask the employer to arrange repatriation if the family wants it; the cost is theirs by law.
4. If the family is abroad, prepare one power of attorney for a trusted person in the UAE, with legalisation, attestation and translation.
5. If nothing is paid within 10 days, ask whether the dues were deposited with MOHRE, then file a request with MOHRE if needed, well inside the two-year limit.

Frequently asked questions

Is end-of-service gratuity paid if an employee dies in the UAE?

Yes. If the employee had at least one year of continuous service, the gratuity is due to the family, together with unpaid salary and leave pay, within 10 days of the death or of the employer learning of it.

Who receives a deceased employee's gratuity in the UAE?

The family member the employee nominated in writing. If there is no nomination or the employer cannot pay the family in time, the employer must deposit the dues in MOHRE's trust account.

Can the employer deduct anything from the final settlement?

Article 51(7) allows deductions from the gratuity only for amounts payable under the law or a court judgment, following the Implementing Regulation. Ask for an itemised statement and question anything you do not understand.

How long does the family have to claim unpaid dues?

A Labour Law claim cannot be heard after two years from the end of the employment relationship, which is the date of death. Act well before that.

Does a will change who receives the gratuity?

No. The employer pays the family member named in the written nomination, or deposits the dues with MOHRE. How the money is finally shared depends on the inheritance rules that apply to the estate, so if relatives may disagree, take advice before it is spent.

The Deed Box helps families in the UAE and abroad with wills, powers of attorney and the attested documents an estate needs. We are not a law firm, so for a dispute with an employer, speak to MOHRE or a UAE-licensed lawyer.

Sources reviewed 31 October 2026: Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations (Articles 15, 29, 37, 42, 51, 55; Article 54 as amended by Federal Decree-Law No. 9 of 2024), MOHRE consolidated text; Ministerial Resolution No. 720 of 2023 on preserving a worker's dues on death (as reported by Aletihad and Galadari). This is general information, not legal advice; the official Arabic texts prevail.