United Arab Emirates: New End-of-Service Savings Scheme Implemented for Select Private Sector Employees
December 6, 2023
Effective immediately, a new end-of-service savings scheme, the “Voluntary Alternative End-of-Service Benefits Scheme,” is now available to employees selected by their private sector employers operating in both the mainland and in select free zones overseen by federal employment regulations. The scheme offers an investment pathway for eligible employees seeking to gain returns on their monthly end-of-service gratuity earnings, which were previously paid out in a lump sum at the end of their employment. Employees currently working in the public sector are also eligible to voluntarily opt into this new scheme. Employers may voluntarily choose to register with the new scheme, while ensuring their employees’ accrued entitlements from the previous end-of-service gratuity scheme are preserved, by submitting an application to the Ministry of Human Resources and Emiratization. Upon the Ministry’s approval, the employer must enter into a contractual agreement with an approved investment fund licensed by the Securities and Commodities Authority, which will assign the company a “Fund Manager” to oversee the respective investments. Employers must then select, subject to their own discretion, the employees who they would like to allow to participate in the new scheme. Employers who fail to pay the basic contribution fee on time will face penalties. This new scheme with monthly contributions gives employees an additional layer of security since previously lump sum payments made at the end of an employee’s employment could be at risk if the company went bankrupt or fell into other financial difficulties.
This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].
Explore more at Fragomen
Blog post
Director Raj Mann explores how demographic change, artificial intelligence and global trade shifts are reshaping labour markets, workforce strategy and immigration policy in 2026.
Blog post
Immigration Supervisor Michael Salas Guzman explains the key eligibility requirements, documentation considerations and benefits of Costa Rica’s Pensionado residency program for retirees receiving lifetime pension income from abroad.
Media mentions
Senior Manager William Diaz outlines how US authorities evaluate prior criminal records under ESTA and what UK travellers need to know when completing their applications.
Awards
Canada Managing Partner Cosmina Morariu has received the France Canada Chamber of Commerce in Ontario (FCCCO) Women in Leadership Award, recognizing her leadership and contributions to the business and legal communities.
Media mentions
Managing Director Diogo Kloper highlights how Brazil’s new electronic visa for Chinese citizens reduces bureaucracy, lowers costs and streamlines business and tourism travel.
Blog post
Partner, Global Responsible Business Practices, Lisa Koenig, Lead Analyst Dominic Dietrich, Senior Associate Sarah Blackmore and Senior Associate Sonya Berenfeld Cole examine why climate disruptions are reshaping mobility strategy as economic loss, workforce displacement and travel risks require organizations to reassess workforce planning and operational resilience.
Media mentions
Associate Ilaria Iovieno and Immigration Consultant Sean Pearce explain how the UK’s higher English language requirement for work visas affects construction employers.
Visas
Senior Business Immigration Manager Vicente Duque outlines key immigration considerations for international visitors traveling to Mexico for the 2026 FIFA World Cup, including visa eligibility, entry documentation and travel between host countries.
Video
Explore EU visa options for non-EU nationals, including Schengen, long-stay and work visas like the EU Blue Card. Find the right visa for your needs.
Media mentions
Director Gemma Hyslop examines how collaboration across the global mobility sector can help strengthen legal pathways and support for migrant women experiencing abuse.
Media mentions
Partner Abeer Al Husseini discussed immigration and duty-of-care challenges for employers amid Middle East travel disruptions.
Awards
Partner Sarah K. Peterson is recognized by the Minneapolis/St. Paul Business Journal as a 2026 Women in Business honoree for her professional achievements and contributions to the Twin Cities business community.
Blog post
Director Raj Mann explores how demographic change, artificial intelligence and global trade shifts are reshaping labour markets, workforce strategy and immigration policy in 2026.
Blog post
Immigration Supervisor Michael Salas Guzman explains the key eligibility requirements, documentation considerations and benefits of Costa Rica’s Pensionado residency program for retirees receiving lifetime pension income from abroad.
Media mentions
Senior Manager William Diaz outlines how US authorities evaluate prior criminal records under ESTA and what UK travellers need to know when completing their applications.
Awards
Canada Managing Partner Cosmina Morariu has received the France Canada Chamber of Commerce in Ontario (FCCCO) Women in Leadership Award, recognizing her leadership and contributions to the business and legal communities.
Media mentions
Managing Director Diogo Kloper highlights how Brazil’s new electronic visa for Chinese citizens reduces bureaucracy, lowers costs and streamlines business and tourism travel.
Blog post
Partner, Global Responsible Business Practices, Lisa Koenig, Lead Analyst Dominic Dietrich, Senior Associate Sarah Blackmore and Senior Associate Sonya Berenfeld Cole examine why climate disruptions are reshaping mobility strategy as economic loss, workforce displacement and travel risks require organizations to reassess workforce planning and operational resilience.
Media mentions
Associate Ilaria Iovieno and Immigration Consultant Sean Pearce explain how the UK’s higher English language requirement for work visas affects construction employers.
Visas
Senior Business Immigration Manager Vicente Duque outlines key immigration considerations for international visitors traveling to Mexico for the 2026 FIFA World Cup, including visa eligibility, entry documentation and travel between host countries.
Video
Explore EU visa options for non-EU nationals, including Schengen, long-stay and work visas like the EU Blue Card. Find the right visa for your needs.
Media mentions
Director Gemma Hyslop examines how collaboration across the global mobility sector can help strengthen legal pathways and support for migrant women experiencing abuse.
Media mentions
Partner Abeer Al Husseini discussed immigration and duty-of-care challenges for employers amid Middle East travel disruptions.
Awards
Partner Sarah K. Peterson is recognized by the Minneapolis/St. Paul Business Journal as a 2026 Women in Business honoree for her professional achievements and contributions to the Twin Cities business community.