Key takeaways
- When a contract ends, you can move to a new employer, whether it expired or was ended under Articles 42 or 45 (Decree-Law Art. 49; Regulation Art. 27).
- Unjustified absence before the contract ends can bring a one-year work permit ban. Employers report absence of more than 7 consecutive days when they cannot reach the worker. Golden Visa holders, skilled workers and others are exempt (Art. 50; Regulation Art. 28).
- Gratuity for foreign full-time workers: after 1 year, 21 days’ basic wage for each of the first 5 years and 30 days for each year after, on the last basic wage, capped at 2 years’ wage (Art. 51).
- The law does not cut gratuity because you resigned. Unpaid absence days are left out of the service count.
- Part-time and job-share workers get pro-rata gratuity. There is none on a temporary contract or under one year (Regulation Art. 30).
- All final dues must be paid within 14 days of the contract ending (Art. 53).
This chapter covers what happens at the end of a job: moving to a new employer, the rules on absence, the end-of-service gratuity, and the deadline for the final settlement. We go through each article in order: a short quote from the official text, then what it means in simple words.
This page explains what the law says. To work out your figure or deal with a ban or absence report, see: Gratuity calculator · End-of-service gratuity guide · Labour ban guide · Checking an absconding case.
Moving to a new employer
Transferring to another employer after the contract ends
Federal Decree-Law 33/2021
“the Worker may move to work for another Employer in accordance with the conditions and procedures specified in the Executive Regulation”Federal Decree-Law No. 33 of 2021, Article 49
In plain English
When the contract ends lawfully, the worker may work for another employer, following the Regulation’s procedure.
Example
Jamal’s two-year contract expires and is not renewed. He accepts an offer from a different company, which applies for a transfer work permit.
You do not need your old employer’s permission to move once the contract has properly ended. A “No Objection Certificate” is not a requirement in this article.
The two situations that allow a transfer
Cabinet Resolution 1/2022
“If the contract’s term, agreed upon between the parties, has expired without being renewed.”Cabinet Resolution No. 1 of 2022, Article 27(1)(a)
In plain English
A worker can transfer to another employer when:
- the contract term expired without renewal; or
- the contract was ended while still running, in one of the ways in Article 42 (for example by notice or mutual agreement) or Article 45 (leaving without notice for a lawful reason).
The Minister can set the detailed transfer procedure.
Example
Mei resigns with proper notice under Article 43. Her contract ends under Article 42(3), so she can transfer to a new employer.
Resigning correctly, with notice, keeps your path to a new job open. Walking out does not: see the absence rules below.
Absence from work
Unlawful absence and the one-year ban
Federal Decree-Law 33/2021
“no other work permit shall be granted thereto to join other work in the State … for a period of one year as of the date of the absence from work.”Federal Decree-Law No. 33 of 2021, Article 50(1)
In plain English
- A foreign worker who is absent without a legitimate reason before the contract ends cannot get a new work permit for one year from the date of absence.
- Another employer who knows about it may not employ or keep that worker during the year.
- MOHRE can exempt some categories, and the employer must report the absence to MOHRE.
Example
A worker stops coming to work mid-contract and cannot be reached. His employer reports him to MOHRE. Unless he falls into an exempt group, he cannot get a new work permit for a year.
If you have a genuine problem with your employer, use the lawful routes (Article 45 or a MOHRE complaint) rather than simply stopping work. For employers, our guide on what to do when an employee absconds covers the reporting steps.
When an absence can be reported, and who is exempt from the ban
Cabinet Resolution 1/2022
“The absence from work shall be for more than (7) consecutive days, without the employer’s knowledge of the worker’s whereabouts or the means of communication with him.”Cabinet Resolution No. 1 of 2022, Article 28(1)(a)
In plain English
The employer reports an absence to MOHRE only when the worker has been absent for more than 7 consecutive days and the employer does not know where they are or how to contact them, using MOHRE’s form.
The one-year ban does not apply to:
- workers sponsored by their parents;
- workers applying for a new permit with the same company;
- workers with skills, professional or knowledge levels the UAE needs;
- Golden Residency holders;
- other categories named by Ministerial resolution.
Example
A worker misses 9 days but has been messaging his manager about a family emergency. The employer knows where he is and how to reach him, so the conditions for an absence report are not met.
End-of-service gratuity
How gratuity is calculated for full-time workers
Federal Decree-Law 33/2021
“The wage of twenty-one (21) days for each year of the first five years of service. … The wage of thirty (30) days for each year in excess of that.”Federal Decree-Law No. 33 of 2021, Article 51(2)
In plain English
- UAE nationals receive end-of-service benefits under the pensions and social security law, not this formula.
- Foreign full-time workers with at least one year of continuous service get:
- 21 days’ basic wage for each of the first 5 years;
- 30 days’ basic wage for each year after that.
- Part-years count pro rata, once one full year has been completed.
- Days of unpaid absence are not counted as service.
- It is calculated on the last basic wage (or the average daily wage for piece-rate workers).
- The total can never exceed two years’ wage.
- The employer may deduct amounts owed by law or a court judgment (see Regulation Article 29).
- The Cabinet can approve alternative schemes, such as savings funds, in place of the gratuity.
Example
Sunil leaves after exactly 7 years on a last basic wage of AED 6,000. His daily wage is AED 200 (AED 6,000 ÷ 30). First 5 years: 5 × 21 = 105 days. Next 2 years: 2 × 30 = 60 days. Total 165 days × AED 200 = AED 33,000.
Article 51 contains no reduction for resignation: a worker who resigns with proper notice after the first year gets the same formula. Use our gratuity calculator to check your own figure.
What can be deducted from your gratuity
Cabinet Resolution 1/2022
“provided that a period of (3) three months has not lapsed on the amounts owed starting from the date they became due”Cabinet Resolution No. 1 of 2022, Article 29(2)
In plain English
The employer may deduct from the gratuity amounts owed by law or a court judgment:
- unpaid loans, or amounts paid to the worker by mistake;
- pension and insurance contributions due under UAE law;
- penalty deductions under the company’s MOHRE-approved penalty list;
- debts under a court judgment against the worker;
- the cost of damage the worker caused by their fault or by breaking instructions.
For penalties and damage, the deduction must follow the legal procedure and be made within 3 months of the amount falling due, unless agreed otherwise.
Example
A worker damaged company equipment eight months before leaving. Unless he agreed otherwise, the employer cannot now deduct that cost from his gratuity, because more than three months have passed.
Ask for a written breakdown of every deduction from your gratuity, with the reason and date. Deductions outside this list, or old penalty and damage claims, can be challenged.
Gratuity for part-time and other work types
Federal Decree-Law 33/2021
“The Executive Regulation … shall define the mechanism for regulating the end-of-service gratuity for foreign Workers in work types other than full-time”Federal Decree-Law No. 33 of 2021, Article 52
In plain English
The law leaves gratuity for non-full-time work to the Regulation, which sets the formula below.
Example
See the worked example under Regulation Article 30.
Your contract type decides your gratuity, so check that it is registered correctly with MOHRE.
The part-time and job-sharing formula
Cabinet Resolution 1/2022
“The end of service pay shall not be applicable in the event of operating under a temporary employment model or if its duration is less than a year.”Cabinet Resolution No. 1 of 2022, Article 30(2)
In plain English
For part-time and job-sharing workers: your yearly contract hours ÷ full-time yearly hours × 100 gives a percentage. That percentage is applied to the full-time gratuity.
There is no gratuity on a temporary contract, or if the service is less than a year.
Example
Lina works half the hours of a full-time role for 4 years. A full-time worker on her rate would get gratuity worth 84 days; she gets 50% of that, 42 days.
Part-time work still builds gratuity. Temporary contracts do not, so check which one you are being offered.
Final dues within 14 days
Federal Decree-Law 33/2021
“The Employer shall pay the Worker, within fourteen (14) days as of the date of the end of the contract, his wages and all other entitlements”Federal Decree-Law No. 33 of 2021, Article 53
In plain English
Within 14 days of the contract ending, the employer must pay everything owed: outstanding wages, unused leave, gratuity, notice pay and any other entitlement under the law, the contract or company rules.
Example
Sofia’s last working day is 1 June. Her full final settlement is due by 15 June.
If day 14 passes without payment, you can file a claim with MOHRE. Claims must be filed within 2 years of the job ending (Article 54(9)).
Gratuity formula check, step by step
This applies the Article 51 formula exactly as written, including the days that do not count and the part-time percentage in Regulation Article 30. For a quick figure, our gratuity calculator does the same sum.
Your resultExample
21 days of basic wage a year for the first 5 years and 30 days a year after, from 1 year of service, capped at two years' wage.
AED 33,000estimated gratuity (Article 51)
Foreign workers only; unpaid absence does not count. The daily wage is the basic wage ÷ 30.
- Service that counts
- 7.00 years
- Days of basic wage earned
- 165 days
- Daily basic wage
- AED 200
- Note
- Full formula applied
File check AED 100 (5% VAT included), credited to your fee if you go ahead.
Law text checked 1 Oct 2026 (uaelegislation.gov.ae). Estimate, not legal advice; the authority's payment screen and decision are final.
Full breakdown
| Service that counts | 7.00 years |
|---|---|
| Days of basic wage earned | 165 days |
| Daily basic wage | AED 200 |
| Gratuity | AED 33,000 |
| Note | Full formula applied |
Sources
Save or share
Based on Decree-Law Article 51 (21 days a year for the first 5 years, 30 days a year after, at least 1 year of service, unpaid absence not counted, capped at two years’ wage) and Regulation Article 30 (part-time percentage; none on temporary contracts). The daily wage is the basic wage ÷ 30 and the cap is taken as 24 months of basic wage. Foreign workers only; UAE nationals are covered by the pensions law. An estimate, not a ruling on your case.
Two different one-year bans, compared
The labour law has two separate one-year work permit bans. They are often mixed up, and they have different triggers and exemptions.
| Leaving during probation without the rules | Unlawful absence before the contract ends | |
|---|---|---|
| Where | Decree-Law Art. 9; Regulation Art. 11 | Decree-Law Art. 50; Regulation Art. 28 |
| Who | A foreign worker who leaves the UAE during probation without the required notice | A foreign worker absent without a legitimate reason before the contract ends |
| Ban | No new work permit for 1 year | No new work permit for 1 year from the date of absence |
| Trigger | Not giving the notice in Article 9 | An employer report after more than 7 consecutive days when the worker cannot be reached |
| Exempt groups | Skilled workers the UAE needs, workers sponsored by parents, Golden Residency holders, others named by the Minister | The same groups, plus workers applying for a new permit with the same company |
| How to avoid it | Give written notice: 14 days if leaving the UAE, 1 month for another UAE employer | Stay reachable; use Article 45 or a MOHRE complaint instead of stopping work |
Check a gratuity deduction
- The deduction is one of the five types in Regulation Article 29: loans or overpayments, pension or insurance contributions, approved penalties, court debts, or damage you caused.
- For a penalty or damage: it went through the legal procedure first.
- For a penalty or damage: it was deducted within 3 months of the amount falling due, unless you agreed otherwise.
- Unpaid absence days removed from your service are real unpaid days, not paid leave or sick leave.
- The settlement was paid within 14 days of your last day (Art. 53).
- You received a written breakdown showing each item and its reason.
- The gratuity cap only matters after about 25 years. 5 × 21 days = 105 days for the first five years, then 30 days a year. If two years’ wage is read as 24 months of basic wage (720 days), the cap is only reached after roughly 25½ years of service.
- Old penalties and damage claims expire against your gratuity. Regulation Article 29 requires these deductions within 3 months of the amount falling due. An employer cannot hold a deduction from years ago until your final settlement unless you agreed.
- Some days off do not build gratuity. Unpaid absence is excluded (Art. 51). The extra unpaid maternity absence (Art. 30) and unpaid leave (Art. 33) also do not count as service. Paid annual leave and paid sick leave are not excluded by these articles.
Quick reference: the numbers in this chapter
| Rule | Figure | Where |
|---|---|---|
| Absence that can be reported | More than 7 consecutive days, worker unreachable | Regulation Art. 28(1) |
| Work permit ban after unlawful absence | 1 year | Decree-Law Art. 50(1) |
| Minimum service for gratuity | 1 year of continuous service | Decree-Law Art. 51(2) |
| Gratuity, years 1 to 5 | 21 days’ basic wage a year | Decree-Law Art. 51(2)(a) |
| Gratuity, after year 5 | 30 days’ basic wage a year | Decree-Law Art. 51(2)(b) |
| Gratuity cap | 2 years’ wage | Decree-Law Art. 51(6) |
| Penalty or damage deduction from gratuity | Within 3 months of falling due | Regulation Art. 29(2) |
| Final settlement | Within 14 days of the contract ending | Decree-Law Art. 53 |
Transfer, absence and gratuity: frequently asked questions
How is end-of-service gratuity calculated under UAE labour law?
For foreign full-time workers with at least one year of continuous service: 21 days’ basic wage for each of the first five years and 30 days’ basic wage for each year after, on the last basic wage, capped at two years’ wage (Article 51 of Federal Decree-Law No. 33 of 2021).
Do I lose gratuity if I resign in the UAE?
Article 51 contains no reduction for resignation. A foreign full-time worker who completes at least one year of continuous service gets the same formula whether they resign or are let go.
Do part-time workers get gratuity in the UAE?
Yes, pro rata to their hours compared with full-time (Regulation Article 30). There is no gratuity on a temporary contract or for service under one year.
How long does my employer have to pay my final settlement?
14 days from the end of the contract, covering wages and all other entitlements (Article 53).
When can an employer report a worker for absence from work?
When the worker has been absent for more than 7 consecutive days and the employer does not know where they are or how to contact them (Regulation Article 28).
Who is exempt from the one-year work permit ban after absence?
Workers sponsored by their parents, workers rejoining the same company, workers with skills the UAE needs, Golden Residency holders and other categories named by Ministerial resolution (Regulation Article 28(2)).
Can my employer deduct an old penalty from my gratuity in the UAE?
Only within limits. Cabinet Resolution 1 of 2022, Article 29, allows penalty and damage deductions from gratuity only after the legal procedure and within 3 months of the amount falling due, unless you agreed otherwise.
Is the probation ban the same as the absconding ban in the UAE?
No. They are two separate one-year work permit bans. One applies to a foreign worker who leaves the UAE during probation without the notice in Article 9; the other to unlawful absence before the contract ends under Article 50. Each has its own exempt groups.
Please note. Quotes are from the official English translation on the UAE Legislation portal, checked on 1 October 2026; the Arabic text in the Official Gazette prevails. The daily-wage step (basic ÷ 30) follows Article 67’s 30-day month. Examples use invented names and are illustrative. This page is general information, not legal advice; MOHRE’s or a court’s decision on your own case is final.
