One of the most common worries when a job ends in the UAE is whether the way you leave changes your payout. The good news on gratuity on resignation vs termination is that, under the current law, it usually does not. Federal Decree-Law No. 33 of 2021 pays your full end of service gratuity whether you resign or are let go – a big change from the old system that punished people for resigning early. This guide walks through every exit scenario, the one situation that can still cost you, and how to work out your exact figure. For the number itself, use our UAE Gratuity Calculator.
The short answer under the current law
Since 2 February 2022, gratuity is earned the same way no matter how the contract ends: 21 days of basic pay for each of your first five years and 30 days for every year after, as long as you have completed at least one year of service. Resigning no longer reduces it. Here is how the main scenarios compare:
| How the job ends | Do you get gratuity? | Notes |
|---|---|---|
| You resign after 1+ year | Yes – full gratuity | No reduction for resigning under current contracts |
| Employer terminates without cause | Yes – full gratuity | Plus any notice pay or compensation owed |
| Dismissed for cause (Article 44) | Yes, in most cases | Still payable unless a court orders forfeiture |
| You leave before 1 year | No | One year of continuous service is the minimum |
| End of a fixed term (not renewed) | Yes – full gratuity | Treated the same as any other completed service |
Being dismissed for cause (Article 44)
This is the biggest misunderstanding people carry over from the old law. Under the previous Article 120, being summarily dismissed for gross misconduct wiped out your gratuity completely. That is no longer the case. Under the current law, gratuity remains payable even if you are dismissed under Article 44, provided you completed at least one year of service. An employer cannot simply invoke Article 44 and withhold your money – forfeiting gratuity now requires a specific court ruling, and the burden of proof sits entirely with the employer. In practice employers win that argument in only a minority of disputed cases. What an employer can do is deduct verified debts you owe – a salary advance, an outstanding loan or unserved notice – from the final amount.
The one exception you should know about
If your service ran under a pre-2022 unlimited contract and you are settling that older period, the historic resignation reductions can still surface. Those old rules cut a resigning employee’s gratuity on a sliding scale:
| Service length (old unlimited contract, resignation) | What you received |
|---|---|
| Less than 1 year | No gratuity |
| 1 to 3 years | One third of the entitlement |
| 3 to 5 years | Two thirds of the entitlement |
| More than 5 years | Full gratuity |
If that is your situation, the Unlimited Contract Gratuity Calculator applies the correct era of rules, and the Resignation Gratuity Calculator models the reduction for you.
Notice period and what still gets deducted
Gratuity is only one line in your final settlement. Whether you resign or are terminated, you also serve or are paid for a notice period (usually 30 to 90 days), and you are paid for any unused annual leave. Against that, your employer can deduct money you genuinely owe. If you resign and leave without serving your notice, the employer can withhold pay in lieu of that notice – and that comes out of your settlement, gratuity included. To see the whole picture rather than just the gratuity line, run the numbers through the Final Settlement Calculator.
Work out your figure
The mechanics of the calculation are identical whether you resigned or were terminated – it is your basic salary and completed service that drive the number, not the reason for leaving. If you want to understand the underlying formula first, our guide on how gratuity is calculated in the UAE breaks it down step by step with a year-by-year example.
Do I get gratuity if I resign in the UAE?
Do I lose my gratuity if I am fired?
Is gratuity different for resignation vs termination?
Can my employer refuse to pay gratuity if I broke the rules?
Do I get gratuity if I leave before one year?
What if I do not serve my notice period?
Last verified: 19 July 2026. This guide is for information only and is not legal or financial advice. Your final settlement depends on your contract, service dates and any amounts owed. For disputes, contact MOHRE on 600 590000.
Sources: UAE Government – End of service benefits ยท Federal Decree-Law No. 33 of 2021, Articles 44, 51 and 53.