Maybe you have just handed in your resignation letter. Maybe your manager ended your contract this morning, or your fixed term is simply running out. Whatever the reason, you are now a leaver, and leavers get hit with a wall of new words. Gratuity, settlement, cancellation, ban. This page explains each term in plain language, and shows what money and paperwork you should walk away with. It is written for hospitality workers, but the rules cover the whole UAE private sector under Federal Decree-Law No. 33 of 2021.

Quick reference: what a leaver should receive

As of July 2026, when your job ends you should receive:

Your wages up to your last working day
Pay for the notice period, or payment in lieu if notice is skipped
End-of-service gratuity, if you completed at least one year of continuous service
Cash for any unused annual leave, based on your basic salary
A flight or ticket cost home in many cases (see repatriation costs below)
Your work permit cancellation processed, and an experience certificate if you ask for one

The employer must pay all wages and entitlements within 14 days of the contract end date (Article 53). Everything above, paid together, is your final settlement.

Ways employment ends

Termination. The general word for ending an employment contract, by either side. Article 42 lists the lawful ways a contract ends. These include agreement in writing, expiry of the term, notice from either party, permanent closure of the business, and employer bankruptcy.

Resignation. You end the contract yourself, in writing, and you serve notice. Resigning does not cost you your gratuity under the current law. But leaving work with no lawful reason before your contract ends can block a new work permit for one year (Article 50). Our resignation letter generator helps you give notice properly.

Dismissal. The employer ends the contract. A normal dismissal still needs written notice and full end-of-service payments. Only the Article 44 grounds below allow dismissal without notice.

Redundancy. An everyday word, not a separate legal route in the UAE. If a hotel closes or the company goes bankrupt, that is a lawful ground to end contracts under Article 42. You still keep your notice rights, gratuity and other dues.

Notice period. The written warning time before the contract ends, between 30 and 90 days depending on your contract (Article 43). You keep working and receive full pay during notice. If the employer gave notice, you may take one unpaid day each week to look for a new job, if you tell the employer at least three days ahead. Probation has its own shorter notice rules, covered in our employment contracts glossary. Check your own dates with the notice period calculator.

Payment in lieu of notice. If either side skips all or part of the notice, that side pays the other the wage for the missed period. The law calls this a notice allowance. It is owed even if no actual loss is proved.

Summary dismissal. Dismissal without notice under Article 44. The law lists ten grounds, including using a false identity or forged papers, causing serious material loss, assault at work, drunkenness or drug use during working hours, disclosing trade secrets, and unexcused absence of more than 20 scattered days or 7 straight days in a year. The employer must hold a written investigation first. Even here, gratuity for completed service is a separate question from the dismissal itself.

Arbitrary dismissal. The common name for what Article 47 calls unlawful termination. It applies when you are dismissed because you filed a genuine complaint with MOHRE or a proven case against the employer. A court can award compensation of up to three months’ wage, based on your last wage, on top of your gratuity, notice dues and other entitlements.

The money you should receive

Final settlement. The full closing payment and clearance when you leave. It bundles unpaid wages, notice pay or payment in lieu, gratuity, and unused leave cash. As of July 2026 the deadline is 14 days from the contract end date.

End-of-service gratuity. The main leaving payment for foreign workers, under Article 51. You qualify after one year of continuous service. The formula uses your basic salary only, not housing or transport allowances. You get 21 days of basic wage for each of the first five years of service, then 30 days for each year after that. The total is capped at two years’ wage. Days of unpaid absence do not count as service. After your first year, part years are paid pro rata. The employer may deduct amounts you genuinely owe. What counts as basic salary is explained in our pay and benefits glossary. Get your own figure in seconds with the gratuity calculator.

End-of-service benefits. The wider bundle of everything due at exit, of which gratuity is the biggest part. It also covers unpaid wages, unused leave cash and any other contract entitlements. The end-of-service calculator adds these up for you.

Alternative end-of-service benefits system. A voluntary savings scheme under Cabinet Resolution No. 96 of 2023. Employers can choose to join. Instead of a gratuity promise, the employer pays monthly into approved investment funds, at 5.83 per cent of basic salary for staff with under five years of service and 8.33 per cent after five years. Workers can add voluntary savings of up to 25 per cent of their total wage. When you leave, the employer contributions and returns are due to you within 14 days. Note the free zone versions too. In the DIFC, the DEWS plan replaced gratuity accrual from 1 February 2020, with the same 5.83 and 8.33 per cent rates. The ADGM runs its own Employment Regulations, with a similar 21 and 30 day gratuity formula but a 21 day payment deadline. As of July 2026, check which regime your employer sits under.

Unused leave payment. Cash for annual leave days you earned but never took, including part-year accrual, calculated on basic salary. How leave builds up is covered in our leave and working hours glossary.

Repatriation costs. The employer must pay the cost of returning you to where you were recruited, or an agreed place, under Article 13. Two exceptions apply. The employer does not pay if you move to another employer in the UAE, or if the contract ended for a reason attributed to you.

Disputes and enforcement

Labour complaint. The formal way to chase unpaid dues. You file with MOHRE first, through the app, website or the call centre on 600590000, with claims advice on 80084. MOHRE also inspects employers and can penalise them for breaking these rules, covered in our Emiratisation and compliance glossary.

Individual labour complaint. A dispute between one worker and one employer. MOHRE first tries a friendly settlement within 14 days. As of July 2026, MOHRE can issue a binding decision itself where the claim is under AED 50,000. Bigger unresolved claims go to the labour court. File within one year of the date your right became due.

Collective labour dispute. A dispute raised by a group of workers over a shared right, such as a whole team receiving no contractual wages. It follows a separate process from an individual complaint.

Labour court. The court that hears cases MOHRE could not settle or decide. After a referral, the case should be registered with the court within 14 days.

Absence from work report. Workplace slang often calls this an “absconding report”. Under the relevant MOHRE procedure, an employer can file one only when the stated absence and contact conditions are met. A report may be cancelled where the worker was on approved leave, remained at work, had a lawful reason or the parties had agreed to end the contract. If a report is wrong, use MOHRE’s cancellation and complaint channels promptly.

Work-permit restriction. Staff talk about “getting banned” as if it follows every exit. It does not. A temporary restriction can apply in limited situations, including certain probation departures and proven absence cases, but exemptions and permit conditions matter. Ask MOHRE to check your actual permit record rather than relying on workplace rumours.

Permits and paperwork

Cancellation of work permit. The employer files the cancellation with MOHRE, settles any fines, and must confirm you received all your dues. Do not sign a receipt saying you were paid in full until you actually were. You normally need the old permit cancelled before a new employer can get you a fresh one.

Experience certificate. Under Article 13, the employer must give you, on request and free of charge, a certificate showing your start and end dates, total service, job title, last wage and the reason the contract ended. It must not contain anything that harms your reputation or job chances. Ask for it before you leave.

A worked example (illustration only)

A commis chef finishes exactly four years at a Dubai restaurant. Her basic salary is AED 3,000 per month, plus allowances that do not count. One day of basic wage is 3,000 x 12 / 365, about AED 98.63. Gratuity is 21 days per year for four years: 21 x 4 x 98.63, about AED 8,285. Add six unused leave days, about AED 592, plus her final month’s full wages. All of it is due within 14 days of her last contract day. These numbers are rounded and for illustration only.

Common misunderstandings

“If I resign I lose my gratuity.” False under the current law. The old sliding scale for resignation ended with the 2021 law.
“Everyone gets a ban when they leave.” No. Restrictions apply only in defined situations, and exemptions can change the result.
“Absconding means changing jobs.” No. It is a formal report with strict conditions, mainly seven days of unexplained absence.
“Gratuity is based on full salary.” It uses basic salary only. A big allowance package does not raise it.
“The employer can pay when it suits them.” The deadline is 14 days from contract end.
“Signing the settlement ends everything.” If your dues were short, you can still complain to MOHRE within one year.

What to check in your documents

The final settlement sheet lists each item separately: wages, notice, gratuity, leave cash, deductions with reasons.
The gratuity line uses your basic salary and your true start date.
The work permit cancellation paper matches what you were actually paid. Query anything you did not receive before signing.
Your experience certificate shows the correct dates, title and last wage.
Keep copies of everything, plus your bank statements showing the payments.

Related glossary pages

Tools from Inspire Ambitions

Source note. Checked by an HR Career Specialist on 11 July 2026 against Federal Decree-Law No. 33 of 2021 on uaelegislation.gov.ae, the UAE Government portal u.ae, Ministerial Resolution No. 47 of 2022, and official DIFC and ADGM publications. Rules can change, so confirm current figures with MOHRE.

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Termination and Gratuity Terms: What You Should Receive When You Leave a UAE Job