Visa Cancellation
Cancelling an Employee's Visa: Settlement First, Then the Permits
When someone leaves, the paperwork has an order. Get it wrong and the company either pays fines or ends up in a dispute over money it already owed.
- Final settlement calculated correctly
- Gratuity worked out on the basic wage
- MOHRE and residence cancellation in the right order
- Payroll and WPS closed off cleanly
Dubai PRO, payroll and tax support for UAE companies, handled by one team.
Last reviewed against current MOHRE, ICP and GDRFA guidance.
Quick Answer
When an employee leaves a mainland company, the employer settles their final dues, including end-of-service gratuity, within 14 days of the contract ending under Federal Decree-Law No. 33 of 2021. The MOHRE work permit is cancelled, then the residence visa through ICP or GDRFA. The employee then has a grace period to leave or change status; its length depends on their visa category, so check it in ICP's file-validity service rather than assuming a number.
Money Before Paperwork
The final settlement is the part that causes disputes, so it comes first. Unpaid salary, accrued leave, gratuity and any notice pay are added up and paid within 14 days of the contract ending.
Gratuity under Article 51 is based on the basic wage: 21 days per year for the first five years and 30 days per year after that.
- Salary to the last working day
- Accrued, unused annual leave
- End-of-service gratuity on the basic wage
- Notice pay where notice is not worked
- Paid within 14 days of the contract ending
The Cancellation Order
The work permit is cancelled through MOHRE first, with the employee's acknowledgement. The residence visa is cancelled after that, and the Emirates ID is cancelled with it.
If the person is moving to a new employer in the UAE, the route is different. The new employer applies for a transfer permit, and the visa is not simply cancelled.
- 1Final settlement agreed and paid
- 2MOHRE work permit cancelled
- 3Residence visa cancelled through ICP or GDRFA
- 4Emirates ID cancelled with the visa
- 5Employee removed from the WPS file
The Grace Period
After cancellation the employee has time to leave the country or change status. How long depends on their visa category and, for some, their MOHRE skill level.
The rules changed in 2022 and again since, and sources disagree. We check the employee's actual grace period in ICP's service rather than quoting a figure. Overstaying it brings daily fines.
- Length depends on visa category
- Skill level can affect it
- Check in ICP's file-validity service
- Daily fines once it runs out
- A new visa within the period avoids exit
What Goes Wrong
The usual mistake is cancelling the visa before the money is agreed. The employee then has a reason to file a complaint, and MOHRE will look at the settlement.
The second is forgetting the payroll side. A leaver left on the WPS file shows up as an unpaid employee.
- Visa cancelled before settlement is agreed
- Gratuity calculated on total, not basic, pay
- Leave balance missed
- Leaver left on the WPS file
- Health insurance not cancelled
How Exiloz Handles Leavers
We calculate the final settlement from payroll records, prepare the documents, run the MOHRE and residence cancellations, and close the employee off on WPS. Because we hold the payroll, the numbers are not a guess.
- Settlement and gratuity calculated
- MOHRE and residence cancellation filed
- WPS and insurance closed off
- Grace period confirmed for the employee
Related Exiloz Services & Guides
How long does an employer have to pay final dues?
Within 14 days of the contract ending, under Article 53 of Federal Decree-Law No. 33 of 2021.
How is end-of-service gratuity calculated?
On the basic wage: 21 days for each year of the first five years of service and 30 days for each year after that, under Article 51. Part years count pro rata.
Which is cancelled first, the work permit or the visa?
The MOHRE work permit, then the residence visa through ICP or GDRFA.
How long is the grace period after cancellation?
It depends on the visa category and, for some employees, their skill level. Check the specific person's period through ICP rather than relying on a general figure.
What if the employee is joining another UAE company?
The new employer applies for a transfer work permit. The visa is moved rather than cancelled in the usual way.
Do we need to cancel health insurance?
Yes. Cancel or transfer the policy once the visa is cancelled so the company stops paying for it.
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Someone Leaving?
Send us the last working day and the contract. We will calculate the settlement and run the cancellation in order.
