Being let go does not change your gratuity in the UAE, and since 2022 even dismissal under Article 44 no longer wipes it out. What changes is what comes on top: notice pay if the employer skips the notice period, and up to three months' wage if a court finds the dismissal arbitrary.
Then add notice and any compensation from the table below.
Open the UAE gratuity calculator →| Item | Rule | Based on |
|---|---|---|
| Gratuity | 21 days per year (years 1–5), 30 days after; cap 24 months; needs 1 year | Last basic salary |
| Notice pay | 30–90 days, if the employer does not let you serve it | Last wage |
| Arbitrary dismissal compensation | Up to 3 months, set by the court | Last wage |
| Unused annual leave | Paid out on exit | Basic salary |
| Repatriation ticket | Employer bears the cost of return | — |
Gratuity uses basic salary only, while notice pay and arbitrary-dismissal compensation use the wage, which includes allowances. That is why the extras can be worth more than the gratuity for short service.
Finding: for short service, gratuity can be the smaller part of the exit package. On AED 8,000 basic and AED 14,000 total wage after 4 years, gratuity is AED 22,400, while a missed 30-day notice period plus the maximum arbitrary-dismissal award add AED 56,000.
| Scenario | Gratuity | Notice pay | Art. 47 compensation | Total |
|---|---|---|---|---|
| Terminated with 30 days' notice served | AED 22,400 | — | — | AED 22,400 |
| Terminated, notice not given by employer | AED 22,400 | AED 14,000 | — | AED 36,400 |
| Arbitrary dismissal proven (maximum award) | AED 22,400 | AED 14,000 | AED 42,000 | AED 78,400 |
| Dismissed under Article 44 (no notice due) | AED 22,400 | — | — | AED 22,400 |
KalQLater calculation. The Article 47 figure is the legal maximum; courts set the actual amount by the type of work, the damage and length of service. Leave balances are not included.
Article 44 lets an employer dismiss without notice for ten listed grounds, including forged documents, serious safety breaches, disclosing confidential information, assault, being intoxicated at work, and unexcused absence of more than 20 non-consecutive days a year or 7 consecutive days. The employer must first hold a written investigation and hand over a written, reasoned notice.
Under the 1980 law, courts allowed such a dismissal to remove gratuity. Decree-Law 33/2021 dropped that: as Al Tamimi & Co put it, the employer cannot forfeit end-of-service gratuity on these grounds. What you lose is notice pay.
The two financial free zones have their own employment laws.
Yes, if you have at least one year of continuous service. Article 51 of Federal Decree-Law No. 33 of 2021 pays the same 21 days of basic per year for the first five years and 30 days after, whatever the reason the contract ended.
Not under the current law. Law firm Al Tamimi & Co notes that the employer cannot forfeit end-of-service gratuity for any Article 44 ground. Under the old 1980 law, courts allowed summary dismissal to remove gratuity.
The notice period must be 30 to 90 days (Article 43). If the employer does not let you work it, it must pay a notice-period allowance based on your last wage, even if no harm was caused.
If a court finds the termination unlawful, for example because you filed a serious complaint with MoHRE, it can award compensation of up to three months' wage under Article 47, on top of gratuity and notice dues.
Within 14 days of the contract ending (Article 53). If they are not paid, you can file a complaint with MoHRE.
There is no separate statutory redundancy payment. A redundant employee receives gratuity, notice pay and other accrued dues such as unused leave.