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Gratuity (end of service benefit / end of service gratuity / EOSG) is a mandatory lump-sum payment that an employer is legally obligated to make to an employee upon termination of employment. This is not a discretionary bonus — it is a statutory right of every expatriate in the UAE private sector who has completed at least one year of continuous service.

Three key distinctions make UAE payroll fundamentally different from most countries.

Emiratisation (توطين) is the UAE government's national policy requiring private sector companies to employ UAE nationals in skilled positions in accordance with mandated percentage quotas. The programme is administered by the Ministry of Human Resources and Emiratisation (MoHRE) and is supported by the Nafis federal financial incentive programme.