Calculation of gratuity upon resignation in a limited contract

The gratuity shall be calculated on the basis of the salary and this is in accordance with Article 132 of the UAE Labour Law:

A worker who has completed one or more years of continuous service shall be entitled to severance pay at the end of his employment. The days of absence from work without pay shall not be included in calculating the period of service.

The severance pay shall be calculated as follows:

1. 21 days' wage for each of the first five years of service.

2. 30 days’ wage for each additional year of service.

Provided always that the aggregate amount of severance pay should not exceed two year's wage.

You’re entitled to full gratuity based on 21 days’ salary for each year of work.

If you need any further assistance or information, please feel free to contact me over email or phone.

Regards,

Once you resign; you will have to pay to the employer 45 days as compensation, because you breached your contract, but you will be entitled to 21 days per each year for the first contract.