Termination benefits in the UAE: what your employer must pay you

If your employer ends your job in the UAE, it must pay you within 14 days: your salary up to the last day, notice pay if you did not get your full notice, pay for unused annual leave, and end-of-service gratuity if you worked at least one year. You may also get up to 3 months’ wages as compensation, but only if a court finds the dismissal was unlawful.

These rules come from the UAE labour law, Federal Decree-Law No. 33 of 2021. For the wider picture, see our UAE labour law guide.

What you should get when your job ends

Payment	When you get it	Law
Salary up to your last day	Always	Article 53
Notice pay	If your employer did not let you serve your notice	Article 43
Unused annual leave	Always, for days not taken	Article 29
End-of-service gratuity	If you worked 1 year or more	Article 51
Compensation for unlawful dismissal	Only if a court orders it; up to 3 months’ wages	Article 47
Other dues in your contract	For example a flight ticket or bonus, if your contract says so	Your contract

Your employer must pay all of this within 14 days of the contract ending (Article 53).

Worked example

Ahmed worked for 4 years. His basic wage is AED 8,000 and his total wage is AED 11,000. His contract has 30 days’ notice. His employer ends the contract and tells him to leave the same day. He has 10 unused leave days.

Item	Working	Amount
Notice pay	30 days of total wage	AED 11,000
Unused leave	8,000 ÷ 30 × 10	AED 2,667
Gratuity	21 days’ basic × 4 years = 84 days; 8,000 ÷ 30 × 84	AED 22,400
Total		AED 36,067

This is on top of his salary up to the last day. Check your own figures with our gratuity calculator and our guide on how to calculate gratuity.

What is the “3 months’ salary on termination”?

Many people think every dismissed worker gets 3 months’ salary. That is not right.

Under Article 47, a dismissal is unlawful if you were fired because you made a serious complaint to MOHRE, or filed a lawsuit against your employer that was found to be valid. In that case, a court can order your employer to pay fair compensation of up to 3 months’ wages, based on your last wage.

The court looks at things like your type of work, how long you worked, and the harm you suffered. This compensation is on top of your notice pay, leave and gratuity.

When can an employer dismiss without notice?

Under Article 44, only after a written investigation and only for serious reasons, such as:

using a false identity or forged documents,
a serious mistake that causes the employer a large loss, or damaging property on purpose,
breaking safety rules after being warned,
failing in your main duties after two written warnings,
sharing work secrets,
being drunk or on drugs at work,
assaulting a manager or colleague,
being absent without a good reason for more than 20 days in a year, or more than 7 days in a row,
joining another employer without following the rules.

If none of these apply, your employer must give you notice or pay you for it.

Termination vs resignation

The money is mostly the same. Gratuity uses the same formula whether you resign or are let go. The differences:

If your employer ends the contract, you can take one unpaid day a week during notice to look for work.
If you resign and do not serve notice, you may owe your employer notice pay.

See resignation and notice period in the UAE.

Job loss insurance

If you subscribed to the Involuntary Loss of Employment (ILOE) scheme for at least 12 months, you may claim up to 60% of your basic salary for up to 3 months. You must claim within 30 days of losing your job, and it does not apply if you were dismissed for disciplinary reasons. See our ILOE insurance guide.

What to do if you are not paid

Ask in writing. Email HR a list of what you are owed. Keep a copy.
Don’t sign a settlement form you disagree with. Signing may be taken as saying you were paid in full.
File a MOHRE complaint in the MOHRE app, on the website, at a Tawafuq or Tas-heel centre, or by calling 80084.
Know the deadline. Since the 2024 amendment, claims must be filed within 2 years of the job ending. MOHRE decides claims of AED 50,000 or less. Bigger claims go to court.

Your visa after termination

Your employer cancels your work permit and residence visa. You then have a grace period to find a new job or leave. After that, overstay fines of AED 50 a day apply. See overstay fine check.

Frequently asked questions

What benefits do I get if my company terminates me in the UAE?

Salary to your last day, notice pay if you did not serve notice, unused leave, gratuity after one year, and any extra benefits in your contract. All within 14 days.

Is 3 months’ salary paid on every termination?

No. Up to 3 months’ wages is compensation a court can order only when the dismissal is unlawful under Article 47.

How is gratuity calculated on termination?

21 days’ basic wage for each of the first 5 years, and 30 days’ basic wage for each year after that. The total cannot go above 2 years’ wages.

How long does my employer have to pay me after termination?

14 days from the end of the contract.

How long do I have to file a claim?

2 years from the day your job ended.

How many warning letters are needed before termination?

The law does not set one number for all cases. For failing in your main duties, Article 44 needs two written warnings first. For serious misconduct, an investigation is needed, not warnings.