Is gratuity paid if you resign in the UAE?
Yes. Under Federal Decree-Law No. 33 of 2021, a full-time foreign worker who has completed one year of continuous service receives end-of-service gratuity at the same rate whether they resign or are dismissed: 21 days' basic wage per year for five years, then 30 days per year, capped at two years' wage.
What changed
The earlier labour law reduced gratuity for workers who resigned early from unlimited contracts. Article 51 of the 2021 law sets one formula based on length of service and basic wage, with no reduction for resignation. The worker must still give the notice set in the contract, and leaving without notice can create other liabilities.
What still matters
- At least one year of continuous service.
- Unpaid absence does not count as service.
- Emirati workers follow the pensions legislation.
- Deductions owed under the law or a judgment may be taken from gratuity.
Related tools and guides
See the labour law guide, the gratuity calculator, the overtime calculator, the annual leave calculator, the final settlement calculator and the meaning of basic salary.
Worked example
A technician on AED 4,500 basic resigns after 2 years and 6 months. Service is 2.5 years, a day's wage is AED 150, and gratuity is 150 × 21 × 2.5 = AED 7,875, the same as if the employer had ended the contract.
Questions people ask
Does notice period affect gratuity?
Not the formula, but leaving without the contractual notice can create other claims.
Is gratuity paid on limited and unlimited contracts alike?
The 2021 law applies the same Article 51 formula.
How fast must it be paid?
Within 14 days of the contract ending.