Resigning in the UAE: What Happens to Your Gratuity?

Under the historical UAE Labour Law (Federal Law No. 8 of 1980), employees on unlimited contracts who resigned between 1 and 3 years received only one-third of their gratuity, and those resigning between 3 and 5 years received two-thirds. Federal Decree-Law No. 33 of 2021 completely abolished these resignation penalties.

Current Resignation Entitlement Rules

If you voluntarily resign after completing 1 full year (365 days) of continuous service:

  • Full Statutory Entitlement: You receive the full statutory 21 days per year for the first 5 years and 30 days per year thereafter.
  • Notice Period Compliance: You must serve your agreed contractual notice period (between 30 and 90 calendar days) as registered in your MOHRE contract.
  • Deductions for Short Notice: If you leave without serving full notice, you may be liable to pay compensation in lieu of notice equal to the basic wage for the unserved period.

Resigning During the 6-Month Probation Period

If you resign during your initial 6-month probation period:

  • No gratuity is payable as continuous service is under 1 year.
  • If leaving the UAE, you must provide at least 14 days written notice.
  • If changing to another UAE employer, you must provide at least 30 days written notice, and the new employer may be required to compensate the former employer for visa recruitment expenses.