If you have completed at least one year of service, you get full gratuity when you resign. The one-third and two-thirds reductions that many people still quote belonged to the old Labour Law, which was replaced in February 2022.
In short
- Resign after one year or more: full gratuity on the normal scale.
- Resign before one year: no gratuity.
- Resigning before five years no longer reduces anything.
- Leave without working your notice and you may owe your employer pay for the notice period, which can come out of your settlement.
What the law says now
Article 51 of Federal Decree-Law No. 33 of 2021 gives end of service gratuity to a full-time foreign employee who has completed one year or more of continuous service. It sets one scale: 21 days of basic pay for each of the first five years and 30 days for each year after that.
The article does not distinguish between an employee who resigns and one who is dismissed. The scale is the same for both.
What changed from the old law
| If you resign after | Old law (before February 2022) | Current law |
|---|---|---|
| Less than 1 year | Nothing | Nothing |
| 1 to 3 years | One third of the gratuity (unlimited contract) | Full gratuity |
| 3 to 5 years | Two thirds of the gratuity (unlimited contract) | Full gratuity |
| More than 5 years | Full gratuity | Full gratuity |
Under the old law, an employee on a fixed-term contract who left before the term ended could lose gratuity altogether unless they had more than five years of service. That rule has gone too.
If your service began under an old unlimited contract, read gratuity for unlimited contracts, because the older scale can still matter for that period.
What you get, by length of service
Each example uses a basic salary of AED 4,500.
Resigning before one year
No gratuity is due. Eleven months and three weeks earns the same as one month: nothing. If you are close to your first anniversary, check your dates before you set a last working day. Your notice period counts as service.
Resigning after one to five years
You earn 21 days of basic pay for each year, plus a share for the part year. After three years and four months that is three full years at AED 3,150 each, plus AED 1,062 for the extra four months: AED 10,512.
Resigning after more than five years
The first five years stay at 21 days each and every later year adds 30 days. After eight years that is 15,750 + 13,500 = AED 29,250.
For your own dates, use the gratuity calculator. It shows each year on its own line.
Notice: where resigning can cost you money
Gratuity is safe when you resign. Notice is where people lose money.
- Your contract sets a notice period of between 30 and 90 days. You work it and are paid as normal, and it counts as service for gratuity.
- If you leave without working your notice, the law makes you liable to pay your employer compensation equal to your pay for the notice period, or for the part you did not work.
- Employers normally take that amount out of the final settlement.
If you would like to leave early, ask your employer to shorten or waive the notice and get the agreement in writing. Many will agree, especially when there is a handover plan.
Resigning during probation
You will not have a year of service, so there is no gratuity to protect. You still have to give notice: one month if you are joining another employer in the UAE, or 14 days if you are leaving the country.
When you can leave without notice
Article 45 lists a few serious situations in which an employee may leave without notice and keep every end of service right. They include an employer who breaks its obligations and does not put things right after being reported to MOHRE, assault or harassment at work, and a serious danger to your safety that the employer knew about and did not fix. The conditions and deadlines are strict, so talk to MOHRE before relying on this.
How to resign so nothing goes wrong
- Resign in writingEmail is fine. State the date of your resignation and the last working day you are proposing.
- Get the last working day confirmedAsk HR to confirm it in writing. This is the date your gratuity is counted to.
- Work your notice or agree a waiverKeep the waiver email.
- Ask for a settlement breakdownUse our sample letter.
- Check before you signCompare the gratuity line with your own figure, and do not sign that you have received your dues until you have.
Your employer has 14 days from the end of the contract to pay. Everything else that should be on the statement is covered in our guide to the final settlement.
Frequently asked questions
Do I get gratuity if I resign before 5 years in the UAE?
Yes. Under the current law you receive full gratuity on the normal scale as long as you have completed at least one year of service.
Do I get gratuity if I resign before completing 1 year?
No. Gratuity is only payable after one full year of continuous service.
Is gratuity lower if I resign than if I am terminated?
No. The current law applies the same scale to both.
Do I lose gratuity if I resign without notice?
You do not lose the gratuity itself, but you owe your employer pay for the notice you did not work, and that can be deducted from your final settlement.
Can my employer refuse to pay gratuity because I resigned?
No. If you have at least one year of service, resignation is not a reason to withhold it. If it is not paid within 14 days, you can file a complaint with MOHRE.
Does my notice period count towards gratuity?
Yes. Service runs to your last working day, which is the end of your notice period.