Can my company deduct a month’s salary from my gratuity if I resign immediately?

This deduction is only legal if you did not work during the notice period.

This does not affect your right to an end-of-service gratuity payment for the period you served (if you are eligible).

If you worked during your notice period or agreed with your employer to waive it, this amount cannot be deducted.

Hello,

Under UAE Labor Law, if an employee resigns without serving the required notice period, the employer is entitled to deduct the equivalent of the notice period's salary from the employee's end-of-service gratuity.

This is in accordance with the UAE Labor Law, which allows such a deduction when the notice period is not fulfilled.

The deduction cannot exceed the amount of gratuity the employee is entitled to. Therefore, the company's action to deduct one month’s salary from your gratuity is in line with UAE labor regulations.

Thank You!

If an employee resigns without serving the agreed-upon notice period, or the minimum legal notice period, the employer has the right to claim compensation from the employee for the damages incurred as a result of this premature termination.

This compensation is usually equivalent to the employee's salary for the notice period they failed to serve.

Article 51 (7) of the UAE Labour Law allows the employer to deduct from the employee's end-of-service gratuity any amounts legally owed by the employee to the employer. This can include compensation for not serving the notice period.

If you need further clarification, you may ask.

Hello,

If the employee resigns without completing the notice period, the employer has the right to deduct an amount equal to the notice period (up to 30 days) from the employee’s final settlement, including end-of-service gratuity.