Payroll

    What is Final settlement?

    A final settlement is the closing payment made to a departing employee, combining outstanding salary, unused leave, end-of-service gratuity and any contractual dues, less lawful deductions.

    Sibanee Kar· Founder & CEO, NeuralHR.AI LinkedIn Last updated 1 August 2026

    Final settlement explained

    In the UAE the settlement typically includes salary to the last working day, payment for accrued unused annual leave at basic rate, end-of-service gratuity where at least one year has been served, notice pay where applicable, and repatriation costs where contractually owed.

    It runs in parallel with visa cancellation, and errors here are the most common cause of post-exit labour disputes.

    How NeuralHR.AI handles Final settlement

    Related terms

    End-of-service gratuityEnd-of-service gratuity is the lump sum a UAE employer owes an employee with at least one year of continuous service, calculated on basic salary under Federal Decree-Law No. 33 of 2021.Employee lifecycleThe employee lifecycle is the full sequence of stages an employee passes through with an employer, from recruitment and onboarding to development, retention and exit.

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    Let the system handle Final settlement

    NeuralHR.AI enforces UAE and Saudi HR rules inside the product — WPS, gratuity, Emiratisation, GOSI, Qiwa and Mudad — so your team is not tracking them by hand.

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    What is Final settlement? Payroll Definition | NeuralHR.AI