Gratuity After Termination in UAE

Your end-of-service entitlement when employment is terminated. Eligibility, calculation, exceptions, and how to claim what you are owed.

UAE Gratuity Calculator

Free · Instant · Based on Federal Decree-Law No. 33 of 2021

Gratuity Entitlement on Termination

Under Federal Decree-Law No. 33 of 2021, an employee whose employment is terminated is generally entitled to end-of-service gratuity if they have completed at least one year of continuous eligible service.

General rule: If you have completed 1 or more years of eligible service, termination of employment generally entitles you to the standard calculated gratuity amount.

Types of Termination

Standard Termination / Redundancy

When an employer ends employment for business reasons, restructuring, or any lawful reason other than gross misconduct, the employee is generally entitled to full calculated gratuity plus any other final settlement entitlements.

Termination During Probation

If employment is terminated during the probation period (up to 6 months), standard gratuity rules may not apply as the minimum service threshold has not been met. Specific terms depend on the contract and applicable law.

Termination for Gross Misconduct

Federal Decree-Law No. 33 of 2021 (Article 44, as amended) specifies certain categories of gross misconduct for which an employer may terminate employment without notice and without gratuity. These are specific and limited categories prescribed by law. Not every poor performance situation qualifies as gross misconduct. If your employer claims gross misconduct to avoid gratuity payment, you have the right to challenge this through MOHRE.

Final Settlement After Termination

Upon termination, your employer must settle all outstanding entitlements. This includes:

End-of-service gratuity (if eligible)
Unpaid salary for days worked
Accrued untaken annual leave
Notice period salary (if applicable)
Any other contractual entitlements

Any lawful deductions (outstanding salary advances, employer loans as permitted by law) may be made from the settlement amount.

Payment Timeline

UAE Labour Law requires the employer to settle final entitlements within the prescribed legal timeframe. If your employer does not pay within this period, you can file a complaint with MOHRE (helpline: 800 60 or mohre.gov.ae).

If You Believe Your Gratuity Was Wrongly Withheld

Request the full final settlement calculation in writing from your employer.
Use our calculator to estimate what you should receive.
File a labour complaint with MOHRE if there is a shortfall.
MOHRE will attempt conciliation; unresolved cases go to court.
Consult a UAE employment lawyer for complex cases.

⚠ Disclaimer: This calculator provides an estimate only, based on the general UAE private-sector framework under Federal Decree-Law No. 33 of 2021. It does not constitute legal advice. Individual entitlements may differ based on employment contract, applicable free-zone rules, special work models, unpaid absences, and other factors. Always verify your specific entitlement with your employer, MOHRE, or a qualified UAE employment lawyer.
Independence: Independent calculator — not affiliated with MOHRE, the UAE Government, Dubai Development Authority, or any government entity.

Official Sources

GovUAE Government Portal — u.ae MOHREMinistry of Human Resources — mohre.gov.ae

LawFederal Decree-Law No. 33 of 2021 — Article 51

Last reviewed: 2025-01-15 • Rule version: 2021-DL33 • Independent calculator — not affiliated with MOHRE, the UAE Government, Dubai Development Authority, or any government entity.

Termination Gratuity FAQs

What happens to gratuity after termination?

If your employment is terminated and you have completed at least one year of service, you are generally entitled to gratuity. If termination is for lawful reasons under UAE Labour Law, your gratuity is typically calculated in full. If terminated for specific gross misconduct reasons prescribed by law, different rules may apply. Consult MOHRE for guidance on your specific circumstances.