UAE Gratuity for Less Than 1 Year of Service 2026
What are you owed if you leave before completing one year? · 6 min read ·
The short answer
Under UAE law, you are not entitled to gratuity if you leave before completing one full year of continuous service.
Federal Decree-Law No. 33 of 2021 sets a hard minimum of one year. Employees who resign, are terminated, or whose contracts expire before this threshold has been reached receive no statutory gratuity — regardless of how long they worked.
What the law says — Article 51 of Federal Decree-Law No. 33 of 2021
Article 51 of the UAE Labour Law is explicit: end-of-service gratuity is calculated for each year of service completed. The word "completed" is the key — the law does not provide for pro-rated entitlement in the first partial year.
The phrase "for each year of service" means no gratuity accrues until the first full year is completed. This interpretation has been consistently upheld by UAE courts.
Even without gratuity — what are your rights?
Even if you leave before one year and are not owed gratuity, you are still entitled to other payments under UAE law:
You are owed:
- All outstanding salary up to the last working day
- Payment in lieu of accrued but unused annual leave
- Notice pay if terminated without proper notice
- Repatriation ticket (if applicable under your contract)
- Any contractual bonuses earned up to termination date
You are NOT owed:
- Statutory end-of-service gratuity (less than 1 year)
- Gratuity for partial year of first year
When can you receive a gratuity-like payment for less than 1 year?
There are limited circumstances where you might receive a payment resembling gratuity even before completing one year:
- Contractual provisions — Your employment contract may explicitly grant gratuity or a severance payment for any period of service. Contracts can always be more generous than the statutory minimum.
- Company policy — Some large employers, particularly multinationals, have internal HR policies that provide partial gratuity after 6 months as a retention or goodwill measure.
- Arbitrary dismissal compensation — If terminated unlawfully or without proper notice, a court may award compensation equivalent to gratuity entitlement as damages — even for partial years.
- DIFC and ADGM — These financial free zones have their own regulations. DIFC employees under the DEWS scheme may have different entitlement structures.
Annual leave is different — you can get a payout in less than 1 year
It is important not to confuse gratuity with annual leave. While gratuity requires one full year, annual leave accrues from day one under UAE law:
| Entitlement | Minimum service required | Notes |
|---|---|---|
| End-of-service gratuity | 1 full year | No pro-rating for partial first year |
| Annual leave payout | Any duration | Accrues from day one, paid out on exit |
| Notice pay | 6 months+ | Minimum 30 days after 6-month probation |
| Sick leave pay | 3 months+ | First 15 days paid in full after 3 months |
If you leave before one year, always request a calculation of your unused leave. For employees with 30 days' annual leave entitlement, up to a month's additional salary may be owed on departure.
How much will you receive leaving at 6 months vs 13 months?
Employee: AED 8,000 basic salary, 30 days annual leave entitlement
The difference is significant — completing one full year before leaving adds gratuity entitlement on top of your leave payout. If you are close to the one-year mark, it is often worth serving out the remaining days.
Use the free UAE gratuity calculator to see exactly what you will be owed once you cross the one-year threshold.
Frequently asked questions
My employer terminated me at 11 months. Can I claim anything?
You cannot claim statutory gratuity. However, you should claim: all outstanding salary, unused annual leave payout, and notice pay (if terminated without adequate notice). If the termination was arbitrary or without cause, you may be entitled to additional compensation — consult a UAE labour lawyer or file with MOHRE.
I resigned at 10 months — my contract says I get gratuity after 6 months. Is that valid?
Yes. Employment contracts can grant more generous benefits than the statutory minimum. If your contract specifies gratuity entitlement after 6 months, your employer is bound by that contractual obligation and must pay accordingly.
Do probation months count toward the 1-year threshold?
Yes. The one-year minimum is calculated from your employment start date, including any probation period. Probation months are continuous service. If your probation is 3 months and you work for 9 more months after probation, you have completed exactly one year.
هل أستحق مكافأة نهاية الخدمة إذا عملت أقل من سنة؟
لا، بموجب القانون الاتحادي رقم 33 لسنة 2021، يشترط إتمام سنة كاملة من الخدمة المتواصلة لاستحقاق مكافأة نهاية الخدمة. من يغادر قبل اكتمال السنة لا يحق له الحصول على مكافأة. غير أنه يحق له استلام راتبه المستحق وأجر الإجازة السنوية غير المستخدمة وبدل الإشعار إن وجد.
Completed 1 year? Calculate exactly what you are owed.
Use the free UAE gratuity calculator — shows daily wage, entitled days, cap status, and payment deadline.
Use the free calculator →