Under Federal Decree-Law No. 33 of 2021, Article 51 (in force since 2 February 2022), a foreign worker on a full-time contract who completes at least one year of continuous service gets end-of-service gratuity based on the last basic wage:
- 21 days of basic wage for each of the first five years;
- 30 days for each year after that;
- parts of a year count in proportion, once the first year is complete;
- days of unpaid absence are not counted as service;
- the total never exceeds two years' wage.
Under the 2021 law, gratuity is the same whether you resign or are terminated, and every contract is a fixed-term one. The old law cut gratuity for some resignations on unlimited contracts; that rule no longer applies.
One day's wage here is your monthly basic ÷ 30, the common method. The law does not fix it, and some employers use × 12 ÷ 365, which gives about 1.4% less. Your employer may also deduct amounts it is owed by law or a court order.
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Rule as of 20 October 2026. Source: Federal Decree-Law No. 33 of 2021 Regarding the Regulation of Labour Relations, Article 51 (u.ae). This is a guide, not legal advice.