Resignation vs Termination UAE Gratuity
Under current UAE Labour Law (Federal Decree-Law No. 33 of 2021), employees who resign after completing 1 year of continuous service receive 100% of their full gratuity without reductions.
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Decree 33 AuditNew Law (2022–2026) vs Old Law (Pre-2022)
Comparing separation entitlements across resignation, employer termination, and Article 44 misconduct
| Separation Type | Current Law (Decree-Law No. 33) | Old Law (Pre-2022 Legacy) | Notice Period Requirement |
|---|---|---|---|
| Resignation (1 to 3 Years) | 100% Entitlement (21 days/yr) | 33.3% Entitlement (1/3 deduction) | 30 to 90 Days written notice |
| Resignation (3 to 5 Years) | 100% Entitlement (21 days/yr) | 66.6% Entitlement (2/3 deduction) | 30 to 90 Days written notice |
| Resignation (5+ Years) | 100% Entitlement (30 days/yr beyond 5) | 100% Entitlement | 30 to 90 Days written notice |
| Termination by Employer | 100% Entitlement | 100% Entitlement | 30 to 90 Days notice or pay in lieu |
| Termination under Article 44 | 0% Entitlement (Forfeited) | 0% Entitlement (Forfeited) | Immediate dismissal without notice |
What is Article 44 of the UAE Labour Law?
Article 44 allows an employer to terminate an employee without notice and without end-of-service gratuity for severe misconduct, such as adopting a false identity, causing substantial material loss to the employer, disclosing commercial secrets, or being convicted of a crime involving honor or honesty.
Is the employer required to provide a repatriation ticket?
Under Article 52, if the employment relationship terminates, the employer must bear the expense of the employee's repatriation ticket back to their place of recruitment, unless the employee enters into the service of another employer or resigns without completing contractual terms.