UAE labour law for HR: end of service, overtime and annual leave
End-of-service gratuity (Article 51), overtime (Article 19) and annual leave (Article 29) under Federal Decree-Law No. 33 of 2021, checked against the UAE Legislation portal, with the calculators that estimate each.
Last updated · 2 min read
Under Federal Decree-Law No. 33 of 2021, a foreign full-time worker with a year of continuous service gets 21 days’ basic wage for each of the first five years and 30 days after, capped at two years’ wage. Overtime is basic plus 25%, or plus 50% from 10 p.m. to 4 a.m. Annual leave is 30 days a year.
Key takeaways
- Gratuity: 21 days’ basic wage a year for five years, then 30 days, after one year of continuous service, capped at two years’ wage (Article 51).
- No reduction for resignation, and unpaid absence does not count as service.
- Overtime: basic plus 25%, plus 50% from 10 p.m. to 4 a.m. or on a rest day (Article 19).
- Leave: 30 days a year, or two days a month between six months and a year (Article 29).
This is general information to help you understand the topic. It is not legal advice. Rules and rates change: always check the official text on the relevant authority’s platform and consult a qualified adviser before acting.
Federal Decree-Law No. 33 of 2021 and its Executive Regulation (Cabinet Resolution No. 1 of 2022) set the rules below. Every figure was checked on 20 October 2026 against the official English text on the UAE Legislation portal; none of these articles has been amended since 2021. The Arabic text prevails over the translation. This is general information, not legal advice.
End-of-service gratuity (Article 51)
A foreign full-time worker who completes one or more years of continuous service gets 21 days’ wage for each of the first five years and 30 days’ wage for each year after, calculated on the last basic wage, with part-years counted pro rata. The total may not exceed two years’ wage. Days of unpaid absence do not count as service.
The law sets no reduction for resignation, and a worker dismissed as a disciplinary sanction keeps the gratuity (Article 39). Employers may deduct amounts the worker owes, within the Executive Regulation. Open-ended contracts made under Law 8 of 1980 may be calculated under that law (Article 68). UAE nationals are covered by the pensions and social security legislation instead.
The law counts a month as 30 days (Article 67), so the UAE gratuity calculator uses basic monthly wage ÷ 30 as the daily wage.
Overtime (Article 19)
Overtime is paid at the basic wage plus at least 25%, and plus at least 50% between 10 p.m. and 4 a.m., except for shift workers. Work on a rest day earns another rest day, or the day’s wage plus at least 50% of the basic wage. Overtime may not exceed two hours a day, and total working hours may not exceed 144 every three weeks. The UAE overtime calculator applies these rates.
Annual leave (Article 29)
Annual leave is at least 30 days for each year of service, and two days for each month when service is over six months but under a year. Rest days that fall inside the leave count as part of it. Leave can be taken during probation, and unused leave is paid on the basic wage when service ends. The UAE leave calculator shows the entitlement.
What to check
- Use the last basic wage for gratuity, overtime and leave encashment.
- Record unpaid absence, because it reduces the service counted for gratuity.
- Check whether an older open-ended contract was made under Law 8 of 1980.
Official sources
Frequently asked questions
Does resignation reduce UAE gratuity?
Not under Decree-Law 33 of 2021: Article 51 sets no reduction. The one exception is an open-ended contract made under the old Law 8 of 1980, which Article 68 allows to be calculated under that law.
Do UAE nationals get gratuity under Article 51?
No. Article 51 covers foreign workers. UAE nationals receive end-of-service benefits under the pensions and social security legislation.
Is gratuity due before one year of service?
No. Gratuity starts after one year of continuous service, and part-years count pro rata after that. The Executive Regulation also gives none for temporary work.
This is general information to help you understand the topic. It is not legal advice. Rules and rates change: always check the official text on the relevant authority’s platform and consult a qualified adviser before acting.
