End-of-service gratuity and notice period (UAE Labour Law)
Checked on 8 October 2026
Under Federal Decree-Law No. 33 of 2021 (private sector), a full-time worker with at least one year of continuous service is entitled to end-of-service gratuity: 21 days' basic wage for each of the first five years, and 30 days' basic wage for each year after that. It is calculated on the last basic wage (without housing, transport and other allowances), and the total may not exceed two years' wage. Unpaid absence days are not counted in the service period (per the law; staff to confirm details). The employer must pay all the worker's dues within 14 days of the end of the contract (Article 53). Notice period: either party may end an unlimited contract for a legitimate reason with written notice of at least 30 and at most 90 days, during which the contract continues; a party who does not give notice pays the other the wage for the notice period. When the employer gives notice, the worker may take one day a week to look for a new job. Some serious cases allow termination without notice (Article 44 for the employer, Article 45 for the worker). Since Federal Decree-Law No. 9 of 2024 (July 2024), labour claims can be filed within two years of the end of employment. A voluntary end-of-service savings scheme approved by the Cabinet (2023) can replace the gratuity for employers who join it. Disputes: MOHRE (600590000, website, app).
Government rules and fees change. This guide was correct when our team checked it; a consultant confirms the details for your own case before anything is submitted.
Official sources
- u.ae - Terminating employment contracts and arbitrary dismissalhttps://u.ae/en/information-and-services/jobs/Sector-of-employment/employment-in-the-private-sector/terminating-employment-contracts
- MOHRE - Federal Decree-Law No. 33 of 2021 and amendments (PDF)https://mohre.gov.ae/assets/download/8cd7cf08/Federal%20Decree-Law%20No.%2033%20of%202021%20Regarding%20the%20Regulation%20of%20Employment%20Relationship%20and%20its%20amendments.pdf.aspx
- MOHRE news (Nov 2024) - Voluntary savings schemehttps://www.mohre.gov.ae/en/media-centre/news/7/11/2024/mohre-urges-employers-to-register-for-the-voluntary-savings-scheme-as-an-alternative-end-of-service-benefits-system-offering-additional-advantages.aspx
- Secondary: Khaleej Times - Article 53, 14 dayshttps://www.khaleejtimes.com/uae/uae-how-soon-must-employer-give-full-final-payment-to-employee-after-resigning
- Secondary: Federal Decree-Law No. 9 of 2024 amendmentshttps://bsalaw.com/insight/key-amendments-in-uae-federal-decree-no-9-of-2024-boosting-labour-compliance-worker-protections-and-dispute-resolution/
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