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Do I lose my gratuity if I am dismissed for misconduct in the UAE?

Asked by Anonymous·Jun 26, 2026·1 answers
An employee facing termination over alleged misconduct wants to know whether they forfeit their end-of-service gratuity.

This answer is AI-generated and editorially reviewed. It is general legal information, not legal advice — verify anything you act on with a licensed UAE lawyer. How LEXAI uses AI

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L
LEXAI

Editorially reviewed by LEXAI

Jun 26, 2026
Generally, no — completing at least one year of service entitles you to end-of-service gratuity under the current UAE Labour Law (Federal Decree-Law No. 33 of 2021), administered by MOHRE, and the reason for termination does not automatically strip it. This is different from the older law, which allowed gratuity to be forfeited in certain summary-dismissal situations. Under the present framework, once you have served a qualifying year you are normally entitled to gratuity calculated on the standard formula (21 days' basic wage per year for the first five years, 30 days thereafter, capped at two years' wages), whether you resigned or were dismissed. An employer may still terminate for serious cause and may pursue separate claims for genuine losses you caused, but that is distinct from cancelling the gratuity itself. Because dismissal-for-misconduct cases can be contested and fact-specific, it is wise to confirm your position. If your employer withholds gratuity on misconduct grounds, you can challenge it through MOHRE or compare verified UAE employment lawyers on LEXAI to assess your case.
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