UAE Gratuity if You Resign vs Are Terminated: What Changed in 2022
Why resigning no longer cuts your UAE gratuity, when you get nothing, how fast it must be paid, and the different rules in DIFC and ADGM.
Updated 27 October 2026
Under the old UAE Labour Law, employees on unlimited contracts who resigned lost part of their gratuity – a third or two-thirds depending on service. Federal Decree-Law No. 33 of 2021, in force since 2 February 2022, removed that reduction. Today, for private-sector employees on the mainland, resigning and being terminated give the same gratuity.
The rules today
- Less than one year of continuous service: no gratuity.
- Years 1–5: 21 days’ basic wage per year.
- After 5 years: 30 days’ basic wage per year.
- Part years are pro-rated; the total is capped at two years’ wage.
- Only basic salary counts – not housing, transport or other allowances.
What resigning still affects
Resigning affects your notice, not your gratuity. You must serve the notice period in your contract (30–90 days) or pay the employer for the part you do not serve. If you are dismissed without notice for one of the serious reasons in Article 44, you lose notice pay; raise any dispute about your final settlement with MOHRE.
When it must be paid
The employer must pay all end-of-service dues, including gratuity, within 14 days of the end of the contract. The employer may deduct amounts you legally owe it. Delays can be reported to MOHRE through its app or call centre (80060).
Free zones with their own rules
DIFC and ADGM have their own employment laws. In the DIFC, employers pay into the DEWS savings plan instead of a lump-sum gratuity, so the calculation above does not apply there.
Calculate your exact amount with the UAE gratuity calculator, and use the end-of-service checklist so you don’t miss leave pay or your ticket.