Questions & Answers
If an employee resigns, are they eligible for gratuity and annual leave?
Dear Sir/Madam,
What happens if an employee resigns after 1 year and 4 months of service?
Are they eligible for gratuity and annual leave?
Dear Questioner,
Calculating the end of service:
A full-time worker who has completed a year or more of continuous service is entitled to an end-of-service reward upon the end of his service.
The days of absence from work without pay are not included in calculating the length of service, and the reward is calculated as follows:
- If the worker works for less than one year, he is not entitled to any end-of-service gratuity.
- If the worker works for less than five years, he is entitled to twenty-one days’ wages for each year of service.
- If the worker works for more than five years, he is entitled to thirty days’ wages for each year in excess of the first five years.
It is stipulated that the total reward does not exceed two years’ wages.

The gratuity amount is calculated based on the employee's last basic salary.

If an employee has served for over 1 year but less than 3 years and resigns, they are entitled to one-third (1/3) of 21 days’ basic salary as gratuity pay in Dubai.
Safa
Badr Legal Consultants

Dear Sir/Madam,
Employees who have completed at least one (01) continuous year of service shall be entitled to end-of-service payment calculated according to the basic salary last received in the following manner:
i. Basic salary of twenty-one (21) days/year for the first five years of service; and
ii. Basic salary of thirty (30) days/year for each year after five years of service.
Please note that the employee shall be entitled to receive end-of-service benefit payment for a portion of the year in service.
Conditions:
i. Unpaid days of leave shall not be included in the calculation of the service period.
ii. The end-of-service payment shall not be more than two (02) years’ basic salary of the employee.
iii. The employer is entitled to make deductions from the end-of-service payment for any amounts due and payable to the employer under any law or judgment.
Should you have any further questions, please do not hesitate to contact us via phone or email. Alternatively, you can also book an appointment with us.
Dear Questioner,
Thank you for your inquiry regarding gratuity and annual leave entitlements upon resignation after 1 year and 4 months of service.
According to UAE labor law, an employee who resigns after completing one year of continuous service is eligible for gratuity, which is calculated based on the length of service.
Annual leave entitlements also accrue during this period and should be compensated accordingly upon resignation.
To provide you with specific guidance tailored to your situation, I would need to know more details.
Please feel free to contact me via WhatsApp or phone at [-------].