End-of-service gratuity, also known as severance pay, is a benefit provided to employees in the UAE as per the UAE Labor Law. It is a payment made to an employee upon the termination of their employment, regardless of the reason for termination (voluntary or involuntary). The gratuity is calculated based on the employee's service length and last basic salary. It is intended to provide financial assistance to the employee during the transition period after leaving their job.