Under the UAE Labour Law, an employee who completes at least one year of continuous service is entitled to an end-of-service gratuity calculated on the basic wage (excluding allowances) [1].
The formula is two-tiered: 21 calendar days of basic wage for each of the first five years of service, then 30 calendar days of basic wage for every additional year [1]. Total gratuity is capped at two years of total wage. Days of unauthorised absence are excluded from the calculation.
A limited contract employee who resigns before completing the contract may have part of the gratuity reduced under the conditions in [2]. Termination by the employer for the most serious misconduct (e.g., the employee actions listed in Article 44) can lead to forfeiture, but resignation alone does not forfeit gratuity in the new framework.
For advice on your specific situation — particularly disputed deductions or contract-end calculations — consult a UAE-licensed lawyer.
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More questions readers asked
Sub-questions our research cluster pulls together — each links to its full Tier-B/C answer.
+−How long is the probation period under UAE Labour Law?
Maximum 6 months. Employer notice during probation: 14 days. Employee leaving UAE: 14 days. Employee switching UAE employer: 1 month and recruitment-cost reimbursement.
+−What notice period applies to contract termination under UAE Labour Law?
Standard notice is 30–90 days written notice (must be set in contract). The other party can pay in lieu. Probation termination requires 14 days. Notice not required for listed serious-misconduct grounds.
+−Can I be terminated during my probation period in the UAE?
Yes. Employer must give 14 days written notice. No gratuity if under 1 year. Discriminatory or retaliatory dismissal can still be challenged at MOHRE.
This is general legal information, not legal advice. For advice tailored to your specific situation, consult a UAE-licensed lawyer.
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