Arbitrary Dismissal & End-of-Service Gratuity in the UAE: Your Rights (2026)
What you're owed if you're dismissed or resign in the UAE: end-of-service gratuity (21/30 days), arbitrary-dismissal compensation, and how to file a MOHRE complaint.
Under UAE labour law, an employee with at least one year of continuous service is generally entitled to end-of-service gratuity calculated on basic salary: 21 days' basic wage for each of the first five years and 30 days for each year after, capped at two years' total wage. A dismissal can be challenged as arbitrary where it follows a legitimate complaint or claim by the worker, with compensation set by the court up to three months' gross wage. Private-sector disputes start at MOHRE, which attempts amicable settlement before the matter is referred to court. Verify every figure against the current law and your contract before acting.
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FAQ
Am I entitled to end-of-service gratuity if I resign in the UAE?
Yes. Under UAE Federal Decree-Law No. 33 of 2021, resigning after at least one year of continuous service does not forfeit gratuity. It is calculated on your last basic salary: 21 days' basic wage per year for the first five years and 30 days per year after, capped at two years' total wage.
How is UAE end-of-service gratuity calculated?
On basic salary only (excluding allowances): 21 days' basic wage for each of the first five years of service and 30 days for each subsequent year, with the total capped at the equivalent of two years' wage. Partial years are pro-rated.
What counts as arbitrary dismissal in the UAE?
Typically, a dismissal is arbitrary where the real reason is that the worker filed a legitimate complaint or claim against the employer, or where there is no valid work-related ground and due process was not followed. A court may award compensation of up to three months' gross wage, in addition to gratuity.
Can I claim both gratuity and arbitrary-dismissal compensation?
Yes. Gratuity is a separate entitlement on termination; arbitrary-dismissal compensation is added on top when arbitrariness is established, alongside notice pay, unused leave and any unpaid wages. Each is independent.
Where do I file a UAE labour dispute?
Private-sector disputes start at the Ministry of Human Resources and Emiratisation (MOHRE), which attempts an amicable settlement before referring the case to the labour court under Article 54 of Decree-Law 33/2021. The free hotline is 80060. Note that labour claims have filing deadlines.