UAE Labour Law Explained: Leave, Gratuity and Resignation Rules
By Thasmiya
Whether you’re starting a new job, planning annual leave or preparing to resign, understanding your employment rights can prevent costly misunderstandings.
The **UAE Labour Law** sets out rules covering annual leave, sick leave, maternity and parental leave, resignation, notice periods and end-of-service gratuity for employees in the private sector.
The principal legislation is **Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations**, together with its Executive Regulations and subsequent amendments.
Here are some of the most important UAE employment rules workers should know in 2026.
## **How Much Annual Leave Do UAE Employees Get?**
A full-time employee who has completed at least one year of service is entitled to a minimum of:
**30 days of paid annual leave for each year of service.**
If an employee has worked for more than six months but less than one year, the entitlement is:
**Two days of annual leave for each month of service.**
Employees are also entitled to proportional leave for the final part of a year if their employment ends before they use the accrued balance.
## **Can Your Employer Decide When You Take Annual Leave?**
Employers have a degree of control over when annual leave is scheduled because business requirements need to be considered.
However, the law states that the employer should determine leave dates according to work requirements and in agreement with the employee, or rotate leave among workers to ensure operations continue.
The employee should generally be notified of the scheduled annual leave **at least one month in advance**.
Employees may also carry forward some or all of their annual leave to the following year with the employer’s approval and according to the organisation’s regulations.
An employer cannot simply prevent an employee from using accrued annual leave indefinitely. The law restricts preventing a worker from benefiting from accrued annual leave for more than two years unless the employee chooses to carry it forward or receive cash compensation under the applicable rules.
## **What Happens to Unused Leave When You Resign?**
Unused annual leave does not simply disappear when employment ends.
If an employee leaves the company before using accrued annual leave, the worker is entitled to payment for the unused statutory leave balance.
For unused leave paid at the end of employment, the calculation is based on the employee’s **basic wage**.
This distinction matters because basic salary can be considerably lower than the employee’s total monthly salary once housing, transport and other allowances are included.
## **How Does Sick Leave Work in the UAE?**
After completing probation, an employee can receive up to **90 days of sick leave per year of service**, whether taken continuously or intermittently.
The payment structure is:
**First 15 days:** Full pay**Next 30 days:** Half pay**Remaining 45 days:** Unpaid
Employees must notify their employer about their illness within a maximum of three days and provide a medical report from the appropriate medical entity.
## **Do You Get Paid Sick Leave During Probation?**
Generally, there is **no entitlement to paid sick leave during probation**.
An employer can, however, grant unpaid sick leave during the probation period when supported by a medical report from a recognised medical authority.
Probation itself cannot exceed six months.
## **What Is Maternity Leave in the UAE Private Sector?**
Female private-sector employees are entitled to **60 days of maternity leave**.
This consists of:
**45 days at full pay**
**15 days at half pay**
Maternity leave may begin up to 30 days before the expected delivery date.
There are additional protections where the mother experiences an illness resulting from pregnancy or childbirth.
In such circumstances, she may take up to an additional **45 days of unpaid leave**, subject to the required medical certification.
If the newborn is sick or has a disability requiring the mother’s constant presence, an additional **30 days of fully paid leave** may be available, which can then be extended for another 30 days without pay, subject to medical evidence.
## **What About Parental Leave for Fathers?**
The UAE Labour Law also provides parental leave.
Either the father or mother of a newborn is entitled to:
**Five working days of paid parental leave.**
These days can be taken continuously or intermittently within **six months of the child’s birth**.
This entitlement is separate from the maternity leave available to eligible female employees.
## **How Much Bereavement Leave Do Employees Get?**
Private-sector employees are entitled to paid bereavement leave when certain close family members die.
The entitlement is:
**Five days** following the death of a spouse.
**Three days** following the death of a parent, child, sibling, grandchild or grandparent.
The entitlement begins from the date of death.
## **Can You Resign From Your Job in the UAE?**
Yes.
An employee can resign, provided the applicable legal and contractual requirements are followed.
The UAE Government specifically states that an employer cannot reject an employee’s resignation when the employee provides the required notice and communicates the resignation through an acknowledged method.
However, resigning does not mean an employee can simply stop reporting to work immediately.
The notice-period rules still apply.
## **What Is the Notice Period When Resigning in the UAE?**
Under Article 43 of the UAE Labour Law, the contractual notice period must generally be:
**At least 30 days and no more than 90 days.**
The exact period should be stated in the employment contract.
The employment relationship continues throughout the notice period, and the employee is entitled to full wages based on their most recent wage.
The employee must continue working during that period if required by the employer.
## **Can You Leave Without Completing Your Notice Period?**
The employer and employee can mutually agree to waive or reduce the notice period while preserving the employee’s applicable rights.
However, simply refusing to serve the required notice can have financial consequences.
The party that fails to comply with the notice period may have to pay **notice-period compensation** equal to the worker’s wage for the full notice period or the unserved portion.
For example, if your employment contract requires 30 days’ notice and you leave without serving the required period or reaching an agreement with your employer, notice compensation may become payable.
## **Can You Resign Without Notice?**
There are specific circumstances in which an employee can terminate employment without notice while retaining end-of-service entitlements.
These include certain cases where the employer fails to fulfil contractual or legal obligations and does not rectify the violation after the required MoHRE process.
Other circumstances include workplace assault or harassment, being instructed to perform fundamentally different work without the required consent, and situations involving serious workplace dangers that the employer fails to address.
Each route has conditions and notification requirements, so employees considering immediate resignation should not assume that any workplace dispute automatically allows them to leave without notice.
## **Resigning During Probation Has Different Rules**
Probation has separate notice requirements.
If an employee wants to leave their current employer during probation **to join another employer in the UAE**, they generally need to provide at least:
**One month’s written notice.**
The new employer may be required to compensate the existing employer for recruitment costs unless otherwise agreed.
If the employee resigns during probation **to leave the UAE**, the required written notice is generally:
**14 days.**
Employers terminating an employee during probation must also generally provide **14 days’ written notice**.
## **What Is UAE End-of-Service Gratuity?**
End-of-service gratuity is an important financial entitlement for eligible foreign private-sector workers.
A full-time foreign employee who completes **at least one year of continuous service** is generally entitled to gratuity when employment ends.
Unpaid absence days are excluded when calculating the qualifying period of service.
## **How Is UAE Gratuity Calculated?**
For an eligible full-time employee under the traditional gratuity system, the calculation is based on the employee’s **last basic salary**, not their total salary including allowances.
For the first five years of service:
**21 days of basic salary for each year.**
For service beyond five years:
**30 days of basic salary for each additional year.**
The total gratuity cannot exceed the equivalent of **two years’ wage**.
## **Simple UAE Gratuity Example**
Imagine an employee has:
**Basic salary:** AED 6,000 per month**Service:** 4 years
The approximate daily basic wage would be:
AED 6,000 ÷ 30 = **AED 200**
The gratuity entitlement for each qualifying year would then be:
AED 200 × 21 days = **AED 4,200**
Across four years:
AED 4,200 × 4 = **AED 16,800**
So the illustrative gratuity would be approximately **AED 16,800**, before considering any legally permissible deductions or other circumstances affecting the final settlement.
## **What If You Worked More Than Five Years?**
Consider an employee with a basic salary of AED 6,000 who has completed seven years.
The first five years are calculated using 21 days per year.
The remaining two years are calculated using 30 days per year.
This higher rate applies only to the years **after the first five years**, rather than recalculating the entire employment period at 30 days per year.
## **Do You Lose Gratuity If You Resign?**
Resignation does not automatically mean losing your gratuity.
Under the current UAE Labour Law framework, an eligible full-time foreign worker who has completed at least one year of continuous service can receive the applicable gratuity when employment ends.
This is an area where employees sometimes rely on information from older versions of UAE labour rules.
The current official calculation should be used when assessing an employee’s entitlement.
## **Is Gratuity Based on Basic Salary or Total Salary?**
**Basic salary.**
The official UAE Government guidance makes clear that the traditional end-of-service gratuity calculation uses the worker’s last basic wage.
Allowances such as housing, transportation, utilities and similar benefits are not included in that calculation.
This is why two employees receiving the same total monthly package can potentially have different gratuity amounts if their contractual basic salaries are different.
## **When Must Your Final Settlement Be Paid?**
Employers must generally pay outstanding wages, other entitlements and end-of-service benefits within:
**14 days from the termination of the employment contract.**
The final settlement can include applicable outstanding salary, unused annual-leave compensation, gratuity and other contractual or statutory entitlements.
Permitted amounts owed by the worker may also be deducted in accordance with the applicable rules.
## **The UAE Also Has an Alternative to Traditional Gratuity**
Traditional gratuity is no longer the only end-of-service model available to participating private-sector employers.
MoHRE has introduced a voluntary **Savings Scheme** as an alternative end-of-service benefits system.
Participating employers make regular contributions into approved investment funds. Eligible employees ultimately receive the allocated contributions along with any investment returns, instead of accumulating traditional gratuity for the period covered by the alternative scheme.
Employees should therefore check whether their employer participates in the alternative scheme before assuming the traditional gratuity formula applies to their entire service period.
## **Can Your Employer Refuse Your Resignation?**
An employer cannot simply force an employee to remain indefinitely because they do not want to accept the resignation.
Official UAE Government guidance states that an employer cannot reject a resignation when the employee gives the required notice and communicates it through an acknowledged method.
Employees should keep evidence that the resignation was properly communicated, particularly when there is a dispute over the resignation date.
## **Can Your Employer Fire You Because You Filed a Labour Complaint?**
The Labour Law contains protection against certain unlawful termination.
If an employer terminates an employee because the worker filed a serious complaint with MoHRE or brought a case against the employer that is proven valid, the termination can be considered unlawful.
A court can award compensation, subject to the legal conditions, of up to **three months’ wages**, without affecting other applicable rights such as notice compensation and end-of-service gratuity.
## **Who Does the UAE Labour Law Apply To?**
These rules generally concern employment relationships within the **UAE private sector** governed by Federal Decree-Law No. 33 of 2021.
However, not every person working in the UAE is governed by exactly the same employment framework.
Government employees, domestic workers and employees operating under certain specialised jurisdictions can be subject to different legislation or employment regulations.
Workers should therefore identify which employment regime governs their contract before applying these rules to a dispute.
## **What Employees Should Check Before Resigning**
Before submitting a resignation, check your employment contract carefully.
Confirm your contractual notice period, basic salary, joining date, unused annual-leave balance and whether your employer participates in an alternative end-of-service savings scheme.
Keep copies of your employment contract, resignation email or letter, salary records and relevant leave records.
These documents can become particularly important if there is a disagreement over final settlement or notice obligations.
## **UAE Labour Law: The Key Numbers to Remember**
For many private-sector employees, the most useful figures are straightforward:
**30 days** — minimum annual leave after completing one year.
**90 days** — maximum annual sick leave after probation, split between full, half and unpaid periods.
**60 days** — standard maternity leave, comprising 45 days at full pay and 15 days at half pay.
**5 working days** — parental leave.
**30 to 90 days** — standard contractual notice-period range after probation.
**21 days’ basic wage per year** — gratuity rate for each of the first five years.
**30 days’ basic wage per year** — gratuity rate for each year after the first five.
**14 days** — general deadline for an employer to pay final wages and end-of-service entitlements after termination.
Understanding these rules can make a significant difference when changing jobs or reviewing a final settlement in the UAE.
## **FAQ**
### **How many annual leave days do UAE private-sector employees get?**
Employees who complete at least one year of service are entitled to a minimum of **30 days of paid annual leave per year**. Employees with more than six months but less than one year receive two days per month.
### **How much sick leave can an employee take?**
After probation, an employee can take up to **90 days per year of service**: the first 15 days at full pay, the next 30 at half pay and the remaining 45 without pay.
### **What is the UAE resignation notice period?**
The standard notice period agreed in the employment contract must generally be between **30 and 90 days** after probation.
### **Can my employer reject my resignation?**
Official UAE Government guidance states that an employer cannot reject an employee’s resignation when proper notice is provided and the resignation is communicated through an acknowledged method.
### **Do I get gratuity if I resign?**
Eligible foreign full-time private-sector workers who have completed at least one year of continuous service are generally entitled to end-of-service gratuity when their employment ends, including following resignation, subject to the applicable rules.
### **Is UAE gratuity calculated on basic salary?**
Yes. Under the traditional system, gratuity is calculated using the employee’s **last basic salary**, excluding allowances such as housing and transport.
### **How much gratuity do I get after five years?**
For the first five years, an eligible full-time employee receives the equivalent of **21 days of basic salary for each year of service**. For each year beyond five, the rate becomes 30 days of basic salary.
### **When should my company pay my final settlement?**
The employer must generally pay outstanding wages, other entitlements and applicable end-of-service benefits within **14 days of the end of the employment contract**.
### **How much maternity leave is available in the UAE private sector?**
Eligible female workers receive **60 days of maternity leave** — 45 days at full pay followed by 15 days at half pay. Additional leave can apply in certain medical circumstances.
### **Does UAE Labour Law apply to everyone working in the UAE?**
No. Federal private-sector labour legislation does not necessarily govern every worker. Government employees, domestic workers and workers under certain specialised jurisdictions can be subject to different rules.
## **Information Resources**
**UAE Legislation** — Federal Decree-Law No. 33 of 2021 concerning the regulation of labour relations and the associated legal framework.
**The Official Platform of the UAE Government (U.ae)** — Official guidance covering annual and sick leave, maternity leave, employment termination, notice periods and end-of-service benefits.
**Ministry of Human Resources and Emiratisation (MoHRE)** — UAE private-sector employment regulation, labour services and dispute-resolution information.
[Read the UAE Labour Law on UAE Legislation](https://uaelegislation.gov.ae/en/legislations/1541?utm_source=chatgpt.com)
[UAE Government private-sector employment guide](https://u.ae/en/information-and-services/jobs/employment-in-the-private-sector?utm_source=chatgpt.com)
[Ministry of Human Resources and Emiratisation](https://www.mohre.gov.ae/?utm_source=chatgpt.com)
## **Image Resources**
**MoHRE** — Official UAE employment and labour-related campaign imagery.
**UAE Government / U.ae** — Official government employment resources and supporting visual material.
**UAE Legislation** — Official legal reference for Federal Decree-Law No. 33 of 2021.
For the main image, prioritise an official **MoHRE UAE workforce or employment-related visual**, or licensed imagery showing professionals working in the UAE rather than using unofficial graphics claiming to reproduce legal documents.
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