Details of severance benefits for an expatriate

The UAE has introduced major labor law reforms, effective from 2025, to enhance workplace fairness and employee rights. These reforms bring significant changes to severance benefits for expatriate employees, including gratuity calculations, leave encashment, and repatriation expenses. Expatriate employees who have completed at least one year of service are entitled to end-of-service benefits, such as gratuity, unused leave encashment, and repatriation expenses. Employers must also provide an experience certificate detailing the employee's tenure and role. Additionally, employers must provide notice or compensation if terminating an employee without a valid reason, ensuring fair treatment and transparency.

The 2025 labor law reforms also introduce new workplace protections and flexible work models, including part-time, temporary, and remote work options. Extended leave policies, anti-discrimination measures, and improved dispute resolution mechanisms are also part of the reforms. The UAE Ministry of Human Resources and Emiratisation (MOHRE) emphasizes that these reforms aim to create a balanced and inclusive workplace, benefiting both employers and employees. Expatriate employees are encouraged to review their employment contracts, understand their entitlements, and seek clarification from their employers or MOHRE if needed.