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Resignation vs Termination Gratuity in the UAE

Last updated June 2026 · 4 min read

Under the old UAE rules, resigning could cost you a large slice of your gratuity. Many employees still assume that is the case — but the 2021 law changed it.

This guide clears up what resignation does and does not do to your gratuity today.

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The 2021 rule: full gratuity either way

Whether you resign or are terminated, you now receive the full gratuity — 21 days per year for the first five years and 30 days thereafter — as long as you complete one year of service. The old resignation reductions no longer apply.

When termination still differs

The gratuity figure is the same, but termination can involve other elements such as notice pay or compensation for arbitrary dismissal. Those sit alongside gratuity rather than changing the gratuity formula itself.

Always complete your notice

Leaving without serving notice can expose you to deductions or claims. Serve your notice period properly so your full gratuity is paid cleanly on your final settlement.

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