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Free Zone Law (DIFC / ADGM / JAFZA)Answered

How is end-of-service gratuity handled under DIFC employment law?

Asked by Anonymous·Jun 26, 2026·1 answers
A worker leaving a DIFC-based firm wants to understand how their end-of-service benefit is calculated.

This answer is AI-generated by LEXAI. It is general legal information, not legal advice — verify anything you act on with a licensed UAE lawyer. How LEXAI uses AI

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Jun 26, 2026
In the Dubai International Financial Centre (DIFC), end-of-service entitlements are handled differently from the UAE mainland. The DIFC operates a mandatory employee workplace savings regime under which employers make ongoing contributions to a qualifying scheme, replacing much of the traditional lump-sum gratuity model for service accrued after the scheme took effect. Service and entitlements are governed by the DIFC Employment Law, the free zone's own statute, and disputes are heard by the DIFC Courts rather than under the federal system supervised by the Ministry of Human Resources and Emiratisation (MOHRE). The exact contribution rates, eligibility and any transitional treatment of pre-scheme service are set out in the DIFC's regulations and can change, so you should confirm the current rules and your specific contribution records rather than assume a flat percentage. Keep your employment contract, payslips and scheme statements when calculating what you are owed. For a precise calculation or a contested settlement, you can compare verified UAE employment and DIFC-experienced legal professionals on LEXAI.
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