Before Federal Decree-Law No. 33 of 2021, UAE employment contracts were either limited (fixed-term) or unlimited (open-ended), and the type changed how much gratuity you kept if you resigned. Unlimited-contract resignations were reduced on a sliding scale, while limited-contract employees who left early often forfeited their gratuity altogether.
The 2021 law moved all private-sector employees onto fixed-term contracts and removed those resignation penalties. Today you receive your full gratuity — 21 days of basic pay per year for the first five years, then 30 days per year — regardless of contract type or whether you resign, provided you complete one year.
Before Federal Decree-Law No. 33 of 2021, UAE employment contracts were either limited (fixed-term) or unlimited (open-ended), and the type changed how much gratuity you kept if you resigned. Unlimited-contract resignations were reduced on a sliding scale, while limited-contract employees who left early often forfeited their gratuity altogether.
The 2021 law moved all private-sector employees onto fixed-term contracts and removed those resignation penalties. Today you receive your full gratuity — 21 days of basic pay per year for the first five years, then 30 days per year — regardless of contract type or whether you resign, provided you complete one year.