I resigned from my company under limited contract. Will I get gratuity?

Estimated read time 3 min read

Dubai-based lawyer Barney Almazar answers the most common questions regarding your legal options in various cases related to living and working in the UAE.

I resigned from my company. Will I get gratuity?

Q: I have been with the company for 8 years under limited contract. I resigned from said company because I got a better job offer from another company. Will I get gratuity or end of service benefits?

Atty. Barney says: Yes, you will receive end of service benefits since you have completed at least one year of service. Under the New Labour Law, resigning employees are entitled to a full end of service gratuity payment provided the employee completed at least one full year of service. The previous provision of law requiring at least five years of service for a resigning employee to receive end of service benefits is no longer applicable. Your company has to pay your salary until last working day and the cash value of your unused annual leave based on your basic salary within 14 days from your termination date. You are not entitled to air ticket since your resignation is voluntary.

Who are entitled to gratuity?

Employees who have resigned from their job or have been terminated from their job for reasons that are not a violation of the UAE’s labour laws are entitled to receive gratuity. They must have completed at least one year of continuous service.

I haven’t received my gratuity. What should I do?

Contact the Ministry of Human Resources and Emiratisation through any Tawafuq or Tasheel centre to initiate the procedures for you to demand payment of your gratuity.

If I decide to raise my case in court, how much will it cost?

Cases filed by employees or their beneficiaries for up to Dh100,000 claims are exempted from court fees.

How much will I get if I win the case?

If the case goes to court, the calculation of the gratuity will be based on your gross salary given for the last three months. This is based on the legal precedent in UAE or court ruling. To qualify for gratuity, an employee must have worked for a minimum of 12 months with the employer.

What is the maximum gratuity?

In all cases, the gratuity shall not exceed the person’s total salary for two years.

How is gratuity computed?

For a person who worked for 1-5 years in a company, the calculation of the gratuity will be based on the basic wages given for 21 days as per the UAE Labour Law. If you worked in the company more than 5 years, your gratuity will be calculated based on the 30 days basic wages.

Do you have a question for Attorney Barney? Contact him at barney@gulflaw.info or call +971558650248. Barney Almazar is a director at Gulf Law in the UAE, Philippines, UK and Portugal. He is a member of the Philippine Bar and holds a UAE legal consultancy license. He is listed by Thomsom Reuters as one of the Super 50 lawyers in the Middle East and North Africa. Asian Legal Business has ranked him as top lawyer in the Philippines, Southeast Asia and Middle East. Know more about him here

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