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Home›Gratuity Calculator›UAE›Resignation
UAE · Gratuity · Resignation

UAE gratuity on resignation: you no longer lose a third, or two

Many UAE employees still believe resigning before five years costs them part of their gratuity. That was true under the 1980 law. Since 2 February 2022, resignation and termination pay exactly the same once you pass one year. On an AED 8,000 basic, the old rule would have cost someone resigning after three years AED 5,600.

Researched by Nikhil ShrivastavaReviewed by Pending independent reviewLaw last verified 23 October 2026Methodology · Report an error
No cutfor resigning under Article 51 of Decree-Law 33/2021
1 yearthe only threshold: nothing before it
2 Feb 2022when the old ⅓ and ⅔ resignation rules ended
2 of 6Gulf countries still cut gratuity on resignation
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Old law vs new law: what resigning used to cost

Under Article 137 of Federal Law No. 8 of 1980, an employee on an unlimited contract who resigned got one third of the gratuity after one to three years and two thirds after three to five years; only after five years was it paid in full. Decree-Law 33/2021 abolished unlimited contracts and its Article 51 has no resignation reduction.

Resigning on AED 8,000 basic: old unlimited-contract rule vs current law
ServiceOld law (resigned)Current lawDifference
1 yearAED 1,867AED 5,600AED 3,733
2 yearsAED 3,733AED 11,200AED 7,467
3 yearsAED 11,200AED 16,800AED 5,600
4 yearsAED 14,933AED 22,400AED 7,467
5 yearsAED 28,000AED 28,000AED 0
7 yearsAED 44,000AED 44,000AED 0
10 yearsAED 68,000AED 68,000AED 0

The old reductions apply only where the resignation itself happened before 2 February 2022. Resignations after that date are calculated under the new law, as lawyers quoted by Gulf News and Khaleej Times explain.

Claim vs reality: "in the Gulf, resigning costs you gratuity"

Finding: true in only two of six countries. Saudi Arabia and Kuwait still reduce gratuity for resignation below ten years. The UAE, Qatar, Oman and Bahrain pay the same either way.

Months of wage paid on resignation, law minimum
ServiceUAESaudi ArabiaKuwaitQatarOmanBahrain
2 years1.400.330.001.402.001.00
4 years2.800.671.152.804.002.50
7 years5.503.003.264.907.005.50
12 years10.509.509.888.4012.0010.50

Calculated by KalQLater from each country's labour law; see the gratuity comparison. Wage definitions differ by country.

Before you resign

  • Check you have passed one full year of continuous service after unpaid leave is taken off.
  • Serve your notice. Skipping it does not cancel gratuity, but the employer can claim the notice-period wage from your dues.
  • Make sure the calculation uses your last basic salary, not an older figure.
  • Dues must be paid within 14 days of the contract ending (Article 53). After that, you can file a MoHRE complaint.

FAQs

Do I lose my gratuity if I resign in the UAE?

No, as long as you have completed one year of continuous service. Article 51 of Federal Decree-Law No. 33 of 2021 pays the same 21 days of basic per year for the first five years and 30 days after, whether you resign or your employer ends the contract.

Is gratuity reduced if I resign before 5 years in the UAE?

Not under the current law. The one-third and two-thirds reductions for resigning with one to five years of service came from Article 137 of the old 1980 labour law and applied to unlimited contracts. The new law, in force since 2 February 2022, removed them.

Do I get gratuity if I resign before 1 year in the UAE?

No. Gratuity starts only after one year of continuous service, whatever the reason for leaving.

Do I lose gratuity if I do not serve my notice period?

The law does not cancel gratuity for that. The employer can claim compensation equal to the wage for the unserved notice period and may deduct amounts you owe from your dues.

Can my employer refuse gratuity after I resign?

Only in narrow cases, such as amounts you owe under the law or a court judgment being deducted. If dues are not paid within 14 days of the contract ending, you can file a complaint with MoHRE.

Sources

01
End-of-service benefits for employees in the private sector ↗UAE Government portal (u.ae). Official. One year of continuous service, unpaid absence excluded, total capped at two years' wage; voluntary savings scheme. Page updated 6 Oct 2025.
02
Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations, Articles 51–53 ↗UAE Government portal (u.ae), consolidated text with amendments. Official law text. Article 51: full-time foreign workers with one year of continuous service get 21 days' basic wage per year for the first five years and 30 days per year after, pro rata for part years, capped at two years' wage. Article 53: paid within 14 days.
03
New UAE labour law: how to calculate gratuity if you're leaving your job after Feb 2 ↗Khaleej Times, 22 January 2022. Old Article 137 reductions for unlimited contracts; resignations after 2 February 2022 follow the new law.
04
Old Labour Law to new: how will my gratuity be affected? ↗Gulf News, updated 7 September 2022. Old-law resignation tiers; lawyer guidance on which law applies by resignation date.

Related

UAE Gratuity CalculatorExact dates, unpaid leave, 2-year capSaudi Gratuity CalculatorThe ⅓ and ⅔ resignation rulesDubai Salary CalculatorCompare a Dubai offer with life in India
About the analysis

Researched and edited by Nikhil Shrivastava

KalQLater publishes data-led explanations built from public datasets. The goal is not to force a dramatic conclusion, but to show what the available evidence supports, where datasets disagree, and what they cannot prove.

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