Current Rule: Gratuity on Resignation
Under Federal Decree-Law No. 33 of 2021 (the current UAE Labour Law), an employee who resigns and has completed at least one year of continuous eligible service is generally entitled to end-of-service gratuity at the standard calculation rates.
The Old Rule (Historical — No Longer Universal)
Under the previous UAE Labour Law (Federal Law No. 8 of 1980), employees with "unlimited contracts" who resigned were subject to reduced gratuity:
- 1 to 3 years service: 1/3 of the calculated gratuity
- 3 to 5 years service: 2/3 of the calculated gratuity
- Over 5 years service: full calculated gratuity
These specific rates no longer apply as a universal rule under the current general framework. Federal Decree-Law No. 33 of 2021 removed the old limited/unlimited contract distinction for the general private sector.
If your employment started before February 2022 and you are assessing a complex transitional situation, consult a UAE employment lawyer.
Resignation: Step-by-Step
- Confirm minimum service: You must have completed at least 1 full year of continuous eligible service.
- Serve your notice period as required under your contract (typically 30–90 days under current law).
- Request final settlement in writing from your employer, including gratuity, accrued leave, and unpaid salary.
- Calculate your estimate using our calculator above to verify the amount.
- If payment is withheld, file a complaint with MOHRE via mohre.gov.ae or call 800 60.
Important Caveats
- If you are enrolled in the End-of-Service Savings Scheme, your EOSB is handled differently.
- Free-zone workers may have different rules — check your contract and applicable regime.
- Domestic workers follow a separate framework.
- Your employment contract must be reviewed for any specific provisions.
Independence: Independent calculator — not affiliated with MOHRE, the UAE Government, Dubai Development Authority, or any government entity.