Resigning from your job in the UAE requires careful consideration of the legal framework governing employment relationships. Understanding your rights and obligations under UAE Labor Law (Federal Decree-Law No. 33/2021) is crucial for a smooth transition and to ensure you receive all your entitlements.
This comprehensive guide covers everything you need to know about resignation under UAE Labor Law in 2025, including notice periods, end-of-service benefits, visa cancellation, and common pitfalls to avoid.
Table of Contents
Quick Overview: Resignation Types
| Resignation Type | Notice Period | Gratuity Eligibility | Visa Grace Period |
|---|---|---|---|
| Limited Contract (Completed) | 30 days | Full Gratuity | 30-90 days |
| Limited Contract (Early) | 30 days | Reduced Gratuity | 30 days |
| Unlimited Contract | 30-90 days | Full Gratuity | 30-90 days |
| Mutual Agreement | Negotiable | Negotiable | 30 days |
Key Steps in the Resignation Process
1. Submit Formal Resignation Letter
- Written notice required (email or physical letter)
- Clear statement of resignation intent
- Last working date specification
- Professional tone without negative comments
- Keep copy for your records
2. Serve Notice Period
- Minimum 30 days for most contracts
- Maximum 90 days for unlimited contracts
- Work normally during this period
- Complete handover of responsibilities
- Use accumulated leave if agreed with employer
3. Calculate End-of-Service Benefits
- Gratuity calculation based on service years
- Unused leave encashment
- Final settlement including outstanding payments
- Bank clearance certificate if required
4. Visa Cancellation Process
- Employer initiates cancellation
- 30-day grace period after cancellation
- Change status or leave UAE within grace period
- Clear all fines before cancellation
5. Receive Final Settlement
- Within 14 days of last working day
- All payments through WPS (Wage Protection System)
- Detailed breakdown of final settlement
- Keep copies of all documents
Gratuity Calculation Guide
Limited Contract Gratuity
| Service Years | Calculation | Example (AED 10,000 salary) |
|---|---|---|
| Less than 1 year | No gratuity | AED 0 |
| 1-5 years | 21 days per year | AED 10,000 ÷ 30 × 21 = AED 7,000/year |
| 5+ years | 30 days per year | AED 10,000 ÷ 30 × 30 = AED 10,000/year |
Unlimited Contract Gratuity
| Service Years | Calculation | Example (AED 10,000 salary) |
|---|---|---|
| Less than 1 year | No gratuity | AED 0 |
| 1-5 years | 21 days per year | AED 10,000 ÷ 30 × 21 = AED 7,000/year |
| 5+ years | 30 days per year | AED 10,000 ÷ 30 × 30 = AED 10,000/year |
Note: Gratuity is calculated on basic salary only, excluding allowances.
Common Resignation Scenarios
Scenario 1: Limited Contract Completion
- Serve full notice period
- Receive full gratuity
- 30-90 day grace period
- Smooth transition
Scenario 2: Early Resignation (Limited Contract)
- Possible penalties if before contract end
- Reduced gratuity
- Employer may claim recruitment costs
- Requires mutual agreement
Scenario 3: Unlimited Contract Resignation
- 30-90 days notice
- Full gratuity after 1 year
- No penalties for resignation
- Standard process
Scenario 4: Mutual Separation
- Negotiated terms
- Customized notice period
- Agreed settlement
- Smooth exit
Important Considerations
Legal Requirements
- Written resignation mandatory
- Notice period must be served
- Final settlement within 14 days
- Visa cancellation by employer
Employee Rights
- Right to resign after serving notice
- Right to gratuity after 1 year service
- Right to leave encashment
- Right to final settlement
Employer Obligations
- Accept resignation when properly given
- Pay all dues within 14 days
- Process visa cancellation
- Provide experience certificate
What to Avoid During Resignation
1. Don’t Resign Verbally
- Always provide written resignation
- Keep proof of submission
- Use professional language
2. Don’t Skip Notice Period
- Complete full notice period
- Avoid absences during notice
- Maintain professional conduct
3. Don’t Burn Bridges
- Stay professional throughout
- Complete proper handover
- Maintain positive relationships
4. Don’t Ignore Documentation
- Get acknowledgment of resignation
- Keep copies of all communications
- Obtain experience certificate
5. Don’t Delay Visa Matters
- Plan for visa cancellation
- Understand grace period
- Arrange new sponsorship or exit
Required Documents for Resignation
For Employee:
- Resignation letter (signed)
- Passcopy and visa copy
- Emirates ID copy
- Bank account details
- Leave balance statement
For Employer:
- Resignation acceptance
- Final settlement calculation
- Experience certificate
- Visa cancellation papers
- MOHRE clearance
Pro Tips for Smooth Resignation
Before Resigning:
- Review contract terms carefully
- Calculate entitlements beforehand
- Secure new offer if possible
- Plan financially for transition period
During Notice Period:
- Main professionalism at all times
- Complete handover properly
- Train replacement if required
- Document everything
After Resignation:
- Follow up on final settlement
- Get experience certificate
- Clear all dues with company
- Plan next steps carefully
Frequently Asked Questions
Can my employer reject my resignation?
No, employers cannot reject a properly submitted resignation. They must accept it and process accordingly.
What if I don’t serve the full notice period?
You may be liable for compensation equivalent to the notice period salary.
Is gratuity payable if I resign before 1 year?
No, gratuity requires minimum 1 year of continuous service.
Can I use annual leave during notice period?
Yes, with employer’s agreement, you can use accrued annual leave during notice period.
What happens to my visa after resignation?
Your employer will cancel your visa, and you’ll have a 30-day grace period to either change status or leave UAE.
When should I receive my final settlement?
Within 14 days of your last working day, as per UAE labor law.
Need Legal Help?
If you encounter issues with your resignation process:
- Contact MOHRE at 80060
- Seek legal advice from labor law specialists
- File complaint through MOHRE app
- Document all communications for evidence
Final Thoughts
Resigning under UAE labor law can be straightforward if you understand the legal requirements and follow proper procedures. Always:
- Plan ahead and understand your contract
- Communicate professionally throughout the process
- Know your rights and entitlements
- Keep documentation of all steps
- Seek help if issues arise
Remember, a professional resignation maintains your reputation and ensures you receive all your legal entitlements.
For more guidance on UAE employment matters, visit our UAE Labor Law Guide.
Author Bio:
About Gulf Careers Hub: We provide accurate, up-to-date information on UAE labor law, employment rights, and career guidance. Our resources help professionals navigate the complexities of working in the UAE.