Beware of your Employment benefits!!

Benefits of continuous employment-UAE Labour Law

If an employee continuously works for an organization he/she will be entitled for gratuity upon termination or resignation. For these benefits to kick in, an employee should at least have accrued one year’s continuous service in the company and dismissal must not be for gross misconduct. Gratuity shall be calculated on the basis of last drawn basic salary of an employee.


As per UAE Labour Law gratuity shall be computed at the rate mentioned below:

  • 21 days’ pay for each year of service up to the first five years’ service
  • 30 days’ pay for each year of service in excess of five years’ service.

Note: The same rule shall be applicable to the employees who work for DIFC and Free zone.

An employee with unlimited contract who work in the organisaiton for a period of less than five years’  and then resigns by his own he is entitled to a reduced gratuity payment, calculated on the basis of length of service, as follows:

  • If an employee works for more than a year but less than three years’ he shall be entitled to one third of the total gratuity.
  • If an employee who works for more than three years’ but less than five years’ he shall be entitled to two-thirds of the total gratuity.
  • If an employee who works more than five years’ he shall be entitled to the full gratuity.

An employee with a limited contract who work in the organization resigns by his own before completing the contract period , he shall not be entitled to any gratuity amount.

In following cases where an employee is not entitled to any end of service gratuity payment:

  • The employees who is entitled for company pension which complies with provision of the Labour Law or DIFC Law
  • Pension contributions are made on the employee’s behalf to the General Pension and Society Security Authority (GPSSA)

Employee are also entitled for Annual Leave, Sick Leave and Maternity Leave. 

Annual Leave:

As per the Law and employee is entitled to annual leave after completing each year of service:

  • Two days leave for every month if his service is more than six months and less than a year
  • 30 days annual leave if his service exceeds one year.

If an employee resigns or terminated he is entitled to annual leave for the fraction of the last year he spent in service.

Sick Leave:

As per the Law an employee is not entiteld to any paid sick leave during probation period. After the probation if an employee falls sick then he shall be entitled to sick leave not more than 90 days either continuous or intermittent per each year of service, computed as below:

  • Full pay for the first 15 days
  • Half pay for the next 30 days
  • No pay for any following period

It should be noted that the employee should provide evidence of his illness warranting sick leave by an official medical certificate.

Maternity Leave:

As per the Law  working women is entitled to maternity leave with full pay for a period of forty five days) including the time before and after delivery, provided that her continuous period of service with the employer is not be less than a year(1 year). But if a working woman has not completed the said period, the maternity leave shall be with half pay.

There are no transfer regulations and an individual’s employment with the first employer is treated as having terminated on the transfer to a new employer.

Note: I am only listing basic Employment Benefits. Your Company may have better benefits.

Does your company offer any other benefits? Let me know!

About Deepak 505 Articles
Deepak is a passionate blogger with interests in bitcoin, online marketing, and writing.
  • in a situation you work for a company and you finish your contract (visa) with them and they say they are not going to pay you your gratuity, what will you do as an employee and even when you go to labour court they are not even helping matter

    • If you have all the proof in favored to you then for sure labour court will help you. I dont think they will say no.

  • Please let me know I am under Limited contract and finished the first contract and renewed for a year and resigned after one year. Am I not entitle for any gratuity even though I finished my first contract.

    Thanks and Appreciated,


  • im working as unlimited contract i finished my 5 yrs with them. what are the things should i get to the under the labour law and how will i know the computation of the gratuity pay for exact five years .. please help me thank you

    • 1. You will be entitled for 21 days basic salary every year for service till 5 years and 30 days basic salary after 5 years.
      2. Balance accumulated leave till your last working day

    • You will be entitled for gratuity _ for the first five years 21 days basic salary per year and after five years 30 days basic salary per year

  • Deepak – Can an employer recover sick leave if an employee resigns? I have an employee who has used all of his sick leave. but now that he has resigned, is it correct to recover pro-rata?

  • i have question sir im finished my 1 year this july 2014 im unlimited contract for 2 years. what is the 1 year benefits should i get as for labor law?

  • Hi,
    If an employee has not availed his eligibility annual leave (i.e. if he worked 2 years in a company and his leave eligible 60 days, but he availed only 45 days) the remaining days to be paid for the employees, if so what is the calculation. Pls. explain.

  • Hi! I would like to know if a company terminates an employee with unlimited contract and in TECOM visa and had worked for 1 year 6 mos, how much does the company has to pay the employee?

  • If hired locally but from other country am I entitled to flight every year home, or just when I finish contract i am on umlimited contract

  • hi i work with security company from 21 august 2013 to my last working day is 30 october 2014 my basic salary was 1200 Aed what you think how much i can get total gratuaity thanks i am waiting. mr Deepak

  • Hi Mr Deepak,

    I am Sr Electrical Engineer from Jacobs Engg.. This company has negotiated and send mutual agreement contract signed during my stay in India.

    After reaching here the company has changed my contract from accompanied to Un accompanied status with same salary what I agreed in India without any prior intimation. On trust of the company name and management I signed the same and realised within 2days after signed.

    Requested Company to change with clear explanation but did n’t agree and not given any answer and says If you like , you stay with this Contract and status otherwise resign.

    I prepared letter for request the correction or demobilise me from this company. They accepted my leeter for demobilisation. For this why company send entry VISA based on Mutual signed contract ??? Is any help I can get from labour law policy??

    Due to above incidents I doubting about company regarding my final settelement and Labour card handover issue…??

    If company will not withdraw labour card ,Is any other Problems I can face in Future???\

    Can you please help to clarify…???


  • i am working with limited 2 years contract in dubai since 30 dec 2012 my company never give my salary in time and i always take my salary after 3 or 4 month, last time 8h dec 2014 my company give my 2 month salary but my pending salaries was 4 months.i take 2 month salaries but i also submit a complaint in labor office so my manager got angry and he told me to not come tomorrow for work, now i want to know
    1.should i complain again for this forceful termination
    2.what gratuity i deserve, my basic and total salary is 3500 dh many leave salaries am i desirving
    4 .should company give me compensation how much?
    5. my labor cacd will expire after two week but my labor contract will expire 7th feb 2015 , am i get a labor ban with this circumstances
    please reply me in detail

  • hi! I am currently having limited contract.I finished the first contract and renewed it for another 2 yrs but after a year I resigned. Am I or not entitle for any gratuity even though I finished my first contract? Should I also have to pay 45 days penalty? Thanks

  • Dear sir, please advise I am on unlimited contract I just completed my two years visa and my employer renewed my visa on October 2014 and by this month I given resignation so kindly let me know what benefits I shall receive from my company

  • But sir i am under limited contract. i finished the first contract then renewed it for another 2 yrs(till january 2016) but this yr i resign.

    Pls advise cause this article said “employee with a limited contract who work in the organization resigns by his own before completing the contract period , he shall not be entitled to any gratuity amount”

  • Dear sir, please advise I am on unlimited contract I just completed my three years and three months and my employer renewed my visa on March 2014 and by this month I given resignation with out the notice period. so kindly let me know what benefits I shall receive from my company.. In case of compensation What will be he further i eligible to get my annual leave salary

    • Abdul,
      you will receive gratuity and any leave salary that is pending.
      You may also get cash in lieu of leaves not taken!

  • hi sir ,i m working in a shop ,as a salesman ,but they started to take me to warehouse and make me do packing and loading ,,which is as a heavy cars parts ,,twice i refused and they force me for ,,that they will make me cancel and make black list to me ,,i have no afternoon break and working 9 to 9 ,,i have been working with them for year ,,plz advice

  • Ghulam,
    You could resign from your post mentioning that the employer has changed your profile without informing you.
    However, please note you may have a labour ban if you have not completed your contract.

  • hi sir..I’m planning to resign Im already 1year and 5 months in the company with unlimited visa aside from gratuity what other benifits will i get?because for the 1st year i already availed my annual leave ang pay..

  • Hello Deepak, I am working in a Private trading company,UAE. I was into unlimited contract. I completed 11 months already. Because of the reason i fail in RTA Road test, the company is terminating me and asking me to pay for my visa cost and comp. share of my driving license fees. Can you please advice me, will i be able to get any benefits, and i wish to work in UAE also. Iam MCA Graduate, will there be labor ban for me, since i didn’t complete 2 yr contract. Please help me with your knowledge.

  • Hi Mr. Deepak M,

    my colleague resign already, he just completed 6 months in our company, is he entitled for a leave pay?

  • I work in a bank for 8 years till now. Basic salary 7000 and gross salary is 19000. Currently the bank is proposing to increase basic salaries for all employees to 60% basic and 40% allowances, therefore my basic will be 11400 and all the other employees will benefit from this as well. This increase will make a huge impact on end of service benefits wich will increase dramatically once the 60% basic is inplemented.
    My question is: can the bank pay the end of service benefit till day as per my last basic (of 7000) and start again with new contract where my basic will be 11400? Is it leagal?

  • Hi Mr. Deepak,

    Good Morning.

    Q please.

    If an employee is being terminated, what will be benifits to get? and does he be receiving 2 months period to find job job with salary?

    please advice?

  • hi,

    Just wanna ask what I resign after one year can I still get my annual leave payment?

    Waiting for your reponse.


  • hi,

    Just wanna ask what If I resign after one year can I still get my annual leave payment?

    Waiting for your reponse.


  • I came on employment visa to abu dhabi 2014 January 17 and I have a different visa as achieve Clark and am working with a security company in abu dhabi I want to cancel by November can I still benefit and my contact is limited

  • Sir,
    Sir I have planned to resign my company after 1year,how much I payed in my company?my basic salary is 1200.

  • I have recently confirmed job here in Dubai . the company took my originals for my visa processing . they didn’t gave me offer letter and it seems they won’t. Will there be any problems for me with the company in future if I work with them without offer letter.

  • Hi Mr. Deepak,

    I got terminated after 8 months of working in Abu Dhabi. Do I have to pay for all the expenses, like visas, ids, medical, and etc.? Because they deducted all the expenses from my last month salary for August. As far as I know, terminated employee will not reliable for the costs of recruitement.


  • Hi sir,

    Actually i am working under unlimited contract.and am on husband company didn’t give any insurance or occupational health card to me and i joined in the month of December 21014 and they made my labor card on April 2015 and i have offer letter from January 2015. i took only 1 sick leave. Now i resigned and my employer deducted 1/4th of my salary. can he deduct so??? what benefits i can get from the company?

  • sir
    i an working LLC company , i was working 5 years , i am planing to resign , how can i get my benefit per year how many day I’ll get ?

  • Hi. Sir.
    I came 6 month before in one psbd security co.but co have no new contract and they want to terminate me…how much co pay to me…some persons says co give remaing 18 month basic pay.& some says co pay nothing..?

  • Kindly confirm as per Dubai government for LLC company ( Worker – In warehouse ) what is the leave policy eligibility….
    Sick leave – No of days eligiable
    Annual leave – 30 days after completion of every year
    CL – CASUAL leave is – No of days eligable ( pls guide )

  • sir
    i am now working now for nine month on unlimited ,and they say they want to terminate me ,am i entitle to any conpesation

  • sir
    am working with trading company upon unlimited contract since 20 months, now i have plan to resign my job. so please let me know about the gratuity and leave salary.

  • Hi sir,

    My husband’s company had a recession and needed to lay off some of their employees, unfortunately my husband is one of them. Supposed to be he had a 2 year contract but he only finished 1 year and 6 months. My question is, can he be able to get his gratuity?

    • Hi Deepak,
      Does my employer have to pay for my wife medical insurance if she transfer her visa to somebody elso and in the middle of process of divorce, since I have this benefits are paid by the company.

  • Dear Deepak,

    I served one a half year. My Limited Contract and Visa expires on 24 Apr 2016 however service is being terminated on 14 Feb 2016 without a notice, on basis of absentism clause in Article 120

    Will I get compensation equivalent to the period until the end of the contract, or three month’s wages (Basic Pay), + Any gratuity I’ll be entitled of?

  • Hi Mr. Deepak,

    I just want to know if an employee on an unlimited contract finishes 2 years, will he be entitled for the annual leave pay for the 2nd year he completed or he will only be entitled for a gratuity pay? Please do reply.. Thanks in advance!

  • Dear Mr.deepak,
    Our company will not continue it’s trade license. And employee will automatically terminated it’s contract. I am almost 1 year in the service. 1minth to go to be exact to be 1 year. What benefit can we get to them? Are we going to get gratuity paid, how about the plain ticket for the return in the point of origin. Thank you.

  • dear deepak,

    iam working in company for last 7 years iam not resigned or terminated i requested to company i need urgent money from the company as my Gratuity encashment shall get in advance their is any labour law.

  • Dear deepak,
    My husband was terminated in his company. Due to company loss. Hes working there for more than 5 years.Supposed to be he will be going vacation next month. But suddenly they were informed they were terminated. Iwant to know ifhe still can get all his benefits for his supposed to be vacation next month? The leave pay salary and the vacation tickets ?

  • Please Deepak i need ur advice. I work as a sales representative and my company want me to be Transfer to another branch of the company but due to my health status nd for the fact i have my relations here, i explained to my boss but he ask me to drop a resignation letter. What can i do

  • hi sir i finished my limited contract , so iam eligible to get my flyt ticket going to my country ?and what are the benifits i iwll get after finishing the contract .

  • Hi sir I am working in a security company. I went vacation before 3 years.but still I didn’t got my leave I have competed 5 years in this company.I asked to company to give me my 5 years leave salary.but they denied. They said if I will not go vacation they will not give me any leave salary.I just want to ask you when I will resign from this company then they will give my all pending leave salary?

  • Hi Deepak,

    I’ve been working for 1 year already under unlimited contract as Secretary, my contract will end on June 2017. My company is sold already and they told us that we will be having a new contract under the new employer. My question is: Is there any possibilities that my old employer will pay us? as part of the MOL law? And if I am not going to agree to the new contract of the new employer, do i have the right to not sign for it? Please enlightened me. Thanks a lot! 🙂

  • Dear
    I’m working in a security company i was arrived in UAE on 23 March 2015 and my company ask me to just take rest in camp and after 45 days thy ask me to start my duty during this period thy didn’t pay me any thing and from last 15 month i didn’t get any day off like national day or Eid day tor any official day off by government.
    My salàry is 3370 as per contract and they are paying me 3050…they didn’t pay me any overtime of the officials government day off and also thy didn’t pay me Ramadan over time
    Please suggest me what should i do can i file a case in court??

  • Hi Deepak…

    Just want some help from you.
    I’ll be finishing my labor contract this coming august 17, 2016… just a week from now.
    I want to go back to my country.
    But suddenly my employer and PRO told me, they will cancel my visa upon the expiry of my emirates ID.
    Is it correct?? Or shall they cancel my visa right after I finished my labor contract?

    Thanks a lot
    Best regards.


  • hi Mr. Deepak

    i am working in a limited company may change status starts at June 20, 2016 i have a six months probation now im in my 5 months working in the company now were facing a problem but they don’t discuss it to us our salary is late my question is if i will finish my six months probation and after that i want to resign will i have a ban in labour please give me some information because right now im having a hard time.

    Thank You

  • I am working as a psbd security gaurd since 8months i want to chane my job if i find another job can i change my job. Will my security company accept my resign…