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Do you get gratuity if you resign in the UAE?

By the Sumtrail editorial team. Published 10 October 2026. Last updated 10 October 2026.

Short answer: yes. If you work in the UAE private sector and have completed at least one year of continuous service, you get the same end of service gratuity whether you resign or your employer ends the contract.

What changed

Under the old Labour Law (Federal Law No. 8 of 1980), workers on unlimited contracts who resigned early got only part of their gratuity: one third after one to three years and two thirds after three to five years. Federal Decree-Law No. 33 of 2021, in force since 2 February 2022, removed these cuts. Article 51 now pays gratuity on the same formula however the contract ends.

The formula is the same

  • 21 days of basic salary for each of the first five years
  • 30 days of basic salary for each year after that
  • Part years paid in proportion
  • Total capped at two years of basic salary

Example: basic salary AED 6,000 and 4 years 6 months of service. A day's basic is AED 200. 4.5 × 21 = 94.5 days × AED 200 = AED 18,900, whether you resigned or were let go.

What can still reduce your final payment

  • Less than one year of service: no gratuity at all.
  • Unpaid leave and absence: these days are not counted as service.
  • Notice you did not serve: if you leave without working your notice period, you owe your employer the wage for the days not served. This is usually deducted from your final settlement.
  • Money you owe: the employer can deduct amounts you owe, such as a salary advance or loan, from your end of service dues.

Before you resign

  1. Check your notice period in your contract (30 to 90 days).
  2. Give notice in writing and keep a copy.
  3. Work out your figures with the UAE final settlement calculator, so you know what to expect.
  4. Your employer must pay your dues within 14 days of your last day.

For the gratuity on its own, use the UAE gratuity calculator, or look up your salary in the UAE gratuity table. For the notice dates, use the UAE notice period calculator.

Sources

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