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Home›Gratuity Calculator›UAE›Termination
UAE · Gratuity · Termination

UAE gratuity on termination: what you are owed, including notice and compensation

Being let go does not change your gratuity in the UAE, and since 2022 even dismissal under Article 44 no longer wipes it out. What changes is what comes on top: notice pay if the employer skips the notice period, and up to three months' wage if a court finds the dismissal arbitrary.

Researched by Nikhil ShrivastavaReviewed by Pending independent reviewLaw last verified 23 October 2026Methodology · Report an error
Same formulagratuity on termination as on resignation (Art. 51)
30–90 daysnotice period, or its wage if not given (Art. 43)
≤ 3 monthsof wage for arbitrary dismissal (Art. 47)
14 daysto pay final dues (Art. 53)
Work out the gratuity part first

Then add notice and any compensation from the table below.

Open the UAE gratuity calculator →

What a terminated employee can claim

End-of-service dues on termination, UAE private sector
ItemRuleBased on
Gratuity21 days per year (years 1–5), 30 days after; cap 24 months; needs 1 yearLast basic salary
Notice pay30–90 days, if the employer does not let you serve itLast wage
Arbitrary dismissal compensationUp to 3 months, set by the courtLast wage
Unused annual leavePaid out on exitBasic salary
Repatriation ticketEmployer bears the cost of return—

Gratuity uses basic salary only, while notice pay and arbitrary-dismissal compensation use the wage, which includes allowances. That is why the extras can be worth more than the gratuity for short service.

Claim vs reality: "if you're fired you just get your gratuity"

Finding: for short service, gratuity can be the smaller part of the exit package. On AED 8,000 basic and AED 14,000 total wage after 4 years, gratuity is AED 22,400, while a missed 30-day notice period plus the maximum arbitrary-dismissal award add AED 56,000.

Exit package after 4 years: AED 8,000 basic, AED 14,000 total wage, 30-day notice
ScenarioGratuityNotice payArt. 47 compensationTotal
Terminated with 30 days' notice servedAED 22,400——AED 22,400
Terminated, notice not given by employerAED 22,400AED 14,000—AED 36,400
Arbitrary dismissal proven (maximum award)AED 22,400AED 14,000AED 42,000AED 78,400
Dismissed under Article 44 (no notice due)AED 22,400——AED 22,400

KalQLater calculation. The Article 47 figure is the legal maximum; courts set the actual amount by the type of work, the damage and length of service. Leave balances are not included.

Article 44: dismissal without notice, but not without gratuity

Article 44 lets an employer dismiss without notice for ten listed grounds, including forged documents, serious safety breaches, disclosing confidential information, assault, being intoxicated at work, and unexcused absence of more than 20 non-consecutive days a year or 7 consecutive days. The employer must first hold a written investigation and hand over a written, reasoned notice.

Under the 1980 law, courts allowed such a dismissal to remove gratuity. Decree-Law 33/2021 dropped that: as Al Tamimi & Co put it, the employer cannot forfeit end-of-service gratuity on these grounds. What you lose is notice pay.

If you work in DIFC or ADGM

The two financial free zones have their own employment laws.

  • DIFC: since 1 February 2020 gratuity has been replaced by monthly employer contributions to DEWS or another qualifying scheme: 5.83% of basic salary in the first five years and 8.33% after. That is the same 21 and 30 days a year, paid in as you go, and you receive the fund balance when you leave.
  • ADGM: the Employment Regulations 2024, in force from 1 April 2025, keep the 21/30-day basic-wage formula after one year of service, remove the two-year cap, and pay gratuity whatever the reason for termination. Employers may offer a pension or savings scheme instead, chosen in writing.
  • Both free zones reportedly require basic salary to be at least 50% of total wage, which stops gratuity being shrunk by a low basic.

FAQs

Do I get gratuity if I am terminated in the UAE?

Yes, if you have at least 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, whatever the reason the contract ended.

Do I lose gratuity if I am dismissed under Article 44?

Not under the current law. Law firm Al Tamimi & Co notes that the employer cannot forfeit end-of-service gratuity for any Article 44 ground. Under the old 1980 law, courts allowed summary dismissal to remove gratuity.

How much notice pay do I get if I am terminated in the UAE?

The notice period must be 30 to 90 days (Article 43). If the employer does not let you work it, it must pay a notice-period allowance based on your last wage, even if no harm was caused.

What is compensation for arbitrary dismissal in the UAE?

If a court finds the termination unlawful, for example because you filed a serious complaint with MoHRE, it can award compensation of up to three months' wage under Article 47, on top of gratuity and notice dues.

When must final dues be paid after termination?

Within 14 days of the contract ending (Article 53). If they are not paid, you can file a complaint with MoHRE.

Is there redundancy pay in the UAE?

There is no separate statutory redundancy payment. A redundant employee receives gratuity, notice pay and other accrued dues such as unused leave.

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
Terminating employment contracts and arbitrary dismissal ↗UAE Government portal (u.ae), updated 12 Aug 2026. Official. Notice of 30–90 days; notice allowance on last wage; Article 47 compensation capped at three months' wage; Article 44 procedure.
04
New UAE Labour Law: significant changes for termination without notice ↗Al Tamimi & Co, January 2022. Article 44 grounds; employer cannot forfeit gratuity on summary dismissal.
05
DIFC unveils new employee workplace savings plan ↗Dubai Media Office, 21 January 2020. Official. DEWS from 1 February 2020; employer contributions 5.83% / 8.33% of basic.
06
Key legislative changes in the new ADGM Employment Regulations 2024 ↗Al Tamimi & Co, 9 January 2025. In force 1 April 2025; gratuity payable in all cases after one year; pension or savings scheme alternative.
07
The new ADGM Employment Regulations – what you need to know ↗Clyde & Co, January 2025. Two-year gratuity cap removed.
08
UAE end-of-service gratuity ↗Teamed, reviewed 16 Oct 2026. ADGM 21/30-day formula; DIFC and ADGM basic wage not below 50% of total wage.

Related

UAE gratuity on resignationNo cut since 2022UAE gratuity tableAmounts by salary and yearsSaudi Gratuity CalculatorHow KSA treats termination
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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