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.
The UAE calculator uses your real dates, unpaid leave and the two-year cap.
Calculate UAE gratuity →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.
| Service | Old law (resigned) | Current law | Difference |
|---|---|---|---|
| 1 year | AED 1,867 | AED 5,600 | AED 3,733 |
| 2 years | AED 3,733 | AED 11,200 | AED 7,467 |
| 3 years | AED 11,200 | AED 16,800 | AED 5,600 |
| 4 years | AED 14,933 | AED 22,400 | AED 7,467 |
| 5 years | AED 28,000 | AED 28,000 | AED 0 |
| 7 years | AED 44,000 | AED 44,000 | AED 0 |
| 10 years | AED 68,000 | AED 68,000 | AED 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.
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.
| Service | UAE | Saudi Arabia | Kuwait | Qatar | Oman | Bahrain |
|---|---|---|---|---|---|---|
| 2 years | 1.40 | 0.33 | 0.00 | 1.40 | 2.00 | 1.00 |
| 4 years | 2.80 | 0.67 | 1.15 | 2.80 | 4.00 | 2.50 |
| 7 years | 5.50 | 3.00 | 3.26 | 4.90 | 7.00 | 5.50 |
| 12 years | 10.50 | 9.50 | 9.88 | 8.40 | 12.00 | 10.50 |
Calculated by KalQLater from each country's labour law; see the gratuity comparison. Wage definitions differ by country.
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.
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.
No. Gratuity starts only after one year of continuous service, whatever the reason for leaving.
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.
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.