For years, the most-searched UAE gratuity question was whether your contract was limited or unlimited — because it changed how much you kept if you resigned. The 2021 Decree-Law reshaped the system, but the question still matters for understanding older entitlements.
Here is what each contract type meant, and what applies today.
An unlimited contract was open-ended; a limited contract ran for a fixed term. Under the old law, resigning from an unlimited contract reduced your gratuity on a sliding scale, while leaving a limited contract early could forfeit it entirely.
The 2021 law moved all private-sector employees onto fixed-term contracts and removed the resignation penalties. Today you receive your full gratuity regardless of the old contract distinction, provided you complete one year.
Employees who left before the law changed, or who are reconciling older settlements, still need the legacy rules. The comparison tool shows both the 2021 figure and what the old reductions would have produced.