End a role in United Arab Emirates, the right way.

Answer a few questions and the toolkit builds your evidence pack — a legitimate basis for ending the role, the contractual notice and the full end-of-service gratuity. The UAE has no redundancy statute, so a clean process and the correct gratuity are what protect you.

United Arab Emirates — Federal Decree-Law 33/2021: a legitimate basis for termination, 30–90 days’ notice and the Art. 51 end-of-service gratuity (21/30 days per year, capped at two years’ wage). No income tax.

Your figures & obligations

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Save your plan, tick off each step with dates and evidence — proof you ran a proper process.

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Ending a role & end-of-service, done right — for UAE employers

The UAE has no separate redundancy statute. A role is ended lawfully on a legitimate business ground with notice (Federal Decree-Law 33/2021, Art. 43), or through a closure of the business (Art. 42(c)); either way the employee is owed the end-of-service gratuity under Art. 51. This free AI toolkit walks you through a clean termination for your exact situation, calculates the gratuity and builds the evidence pack.

The process, step by step

Lawful basis — record the legitimate reason for ending the role (a genuine operational or business ground under Art. 43, or a closure of the business under Art. 42(c)); the UAE has no separate redundancy statute.
Notice — give the written notice set in the contract (30–90 days), or pay wages in lieu for the un-served period.
End-of-service gratuity — calculate the Art. 51 gratuity on the basic wage: 21 days per year for the first five years, 30 days per year thereafter, capped at two years’ wage.
Avoid arbitrary dismissal — an arbitrary or unlawful dismissal (Art. 47) adds compensation of up to three months’ gross wage, separate from notice and gratuity.
Final pay — settle the gratuity, any pay in lieu of notice, accrued leave and outstanding wages on termination.

End-of-service gratuity

The end-of-service gratuity (مكافأة نهاية الخدمة, Art. 51) is calculated on the basic wage at a graduated rate, and needs at least one year of service:

First 5 years of service	21 days’ basic wage per year
Each year beyond 5 years	30 days’ basic wage per year

The total gratuity is capped at two years’ wage. At least one year of service is required; part-years are paid pro-rata. Under the 2021 law the gratuity is the same whether the employer terminates or the worker resigns.

Notice periods

Any length of service (set in the contract)

30–90 days’ written notice, or pay in lieu

Federal Decree-Law 33/2021, Art. 43 — the notice is fixed in the contract within the 30-to-90-day band. Either side may pay wages in lieu of the un-served notice.

Arbitrary dismissal & collective layoffs

The UAE requires no collective authorisation to reduce headcount — there is no committee, no pre-approval and no consultation statute. The employer’s protection is procedural: end each role on a legitimate Art. 43 ground (or an Art. 42(c) closure) with proper notice and the full gratuity. An arbitrary dismissal under Art. 47 carries compensation of up to three months’ gross wage, awarded on top of notice and gratuity.

Common questions

How much end-of-service gratuity is due?

On the basic wage: 21 days’ pay for each of the first five years of service and 30 days’ pay for each year after that, with the total capped at two years’ wage. At least one year of service is required and part-years are paid pro-rata.

Is there a redundancy process or payment?

The UAE has no separate redundancy statute. A role is ended on a legitimate ground under Art. 43 (or a closure under Art. 42(c)) with the contractual 30–90 days’ notice; the end-of-service gratuity is the payment, and there is no collective authorisation to obtain.

What happens if the dismissal is arbitrary?

An arbitrary or unlawful dismissal under Art. 47 adds compensation of up to three months’ gross wage, on top of the notice and the gratuity.

Is the gratuity taxed?

No. The UAE levies no personal income tax, so the end-of-service gratuity is paid untaxed.

Reference: Federal Decree-Law 33/2021, arts. 42, 43, 47 & 51; mohre.gov.ae. General information for employers, not legal advice.