You finish your last day, hand back your access card and wait for your final settlement, only to hear that your gratuity is “not payable”. It happens more often than it should. The truth is that under the current UAE Labour Law an employer has far fewer ways to refuse gratuity than many people think, and several reasons you may have heard are left over from the old law.

This guide goes through nine situations that commonly come up, explains which ones can really stop or reduce your gratuity, and shows what to do if you think you are being denied money you have earned.

Last updated: September 2026. Reviewed against Federal Decree-Law No. 33 of 2021 and Cabinet Resolution No. 1 of 2022.

The Basics: Who Is Entitled to Gratuity?

As per Federal Decree-Law No. 33 of 2021, a private-sector employee earns gratuity after completing one year of continuous service. The amount is based on basic wage only:

• 21 days of basic wage for each of the first five years
• 30 days of basic wage for each year after that
• Total capped at two years of wages
• Paid within 14 days of the contract ending

For an exact figure, try our calculation of gratuity tool, or read the full gratuity calculation guide.

9 Situations That Affect Your Gratuity

1. You worked less than 12 months

This one is real. Gratuity only starts after one full year of continuous service. If you leave at 11 months, for any reason, there is no gratuity to pay.

2. You resigned without serving notice

Affects notice pay, not gratuity. Leaving without working your notice period (between 30 and 90 days under the current law) can mean you owe the employer compensation equal to the unserved notice. That amount may be deducted from your final settlement, but the law does not let the employer cancel your gratuity because of it.

3. You left a fixed-term contract early

Old rule, no longer applies. Under the 1980 law, walking out of a limited contract early could cost you gratuity. The 2021 law replaced that system. If you resign properly with notice after a year of service, you keep your full gratuity, even if your contract had time left to run.

4. You were dismissed for gross misconduct

Does not automatically cancel it. Article 44 lets an employer dismiss someone without notice for serious reasons such as fraud, disclosing company secrets or being found drunk at work. But gratuity already earned is treated as an accrued right. The employer can claim documented losses through MOHRE or the courts; it cannot simply decide not to pay.

5. You worked for someone else during your leave

A dismissal risk, not a gratuity rule. Working for another employer while on leave without permission can be grounds for disciplinary action or dismissal. As with any dismissal, it does not by itself wipe out gratuity you have earned.

6. You ignored warnings or kept underperforming

Can lead to termination, not forfeiture. Repeated written warnings can justify ending your contract, but you are still paid gratuity for the years you have completed.

7. You damaged company property

May lead to a deduction. If you caused damage through your own fault, the employer can deduct compensation within the limits set by the law and its regulations, and only with proper documentation. A deduction is not the same as refusing the whole payment.

8. You were let go during probation

No gratuity if under a year. Probation lasts a maximum of six months, so you will not have reached the one-year threshold. If you stay on after probation, that probation time counts towards your service.

9. You took unpaid leave

This one is real too. Days of unpaid absence are not counted as service. For example, if you worked for 24 months but took three months unpaid, your gratuity is worked out on 21 months.

What to Do If Your Gratuity Is Denied

1. Ask for the reason in writing. Request a final settlement statement that shows every deduction.
2. Check your contract and payslips. Confirm your basic wage and exact start date.
3. Contact MOHRE. File a complaint through the MoHRE website, the MOHRE app or the call centre on 600590000. You can also get help in person at a Tawafuq Centre.
4. Go to court if needed. If MOHRE cannot settle the dispute, it refers the case to the Labor Court (or the relevant court in your emirate).

Our guides on filing a gratuity complaint and writing a gratuity request letter walk you through each step.

Frequently Asked Questions

Can my employer legally refuse to pay gratuity?

Only if you have not completed one year of service. Beyond that, the employer may make lawful deductions, but refusing the whole amount needs a legal basis confirmed by MOHRE or a court.

Does resigning reduce my gratuity?

No. Since February 2022, resigning and being terminated give the same gratuity once you pass one year.

How long does my employer have to pay?

14 days from the date your contract ends.

This article is general information and not legal advice. For your specific case, speak to MOHRE or a licensed UAE lawyer.