Reaching the end of contract in UAE means your employment period has officially concluded. Whether your job ends because of non-renewal, project completion, or mutual decision, it’s crucial to understand your legal rights, responsibilities, and benefits under the UAE Labour Law 2025.
This guide covers everything you need to know about what happens at the end of contract in UAE, including gratuity, visa cancellation, and what to do if your employer fails to follow the law.
End of Contract in UAE Employee Rights in 2025
Types of Employment Contracts in UAE
End of Contract in UAE: All contracts in the UAE are now under the limited-term model, introduced by Federal Decree Law No. 33 of 2021 and updated in 2025:
| Type of Contract | Key Features |
|---|---|
| Limited-Term | Fixed duration (up to 3 years) |
| Automatically Renews | Unless terminated or modified |
| Can be terminated early | With legal notice period |
The end of contract in UAE now refers to the natural expiry or agreed termination of a fixed-term contract.
Employee Rights at End of Contract in UAE
When your contract ends, you are entitled to:
Full and Final Settlement
Salary for last working month
Unused leave salary
Any bonuses or incentives due
Deductions explained and documented
Gratuity Payment
Based on years of service
Payable for all who have completed 1 year of employment
Flight Ticket (if included)
Only if mentioned in your contract
Or company policy applies to end-of-service repatriation
Service Certificate
Must be issued upon request
States period of employment and job title
Visa and Emirates ID Cancellation
Employer must cancel visa within 30 days of contract end
Employee must exit or transfer visa during grace period
Gratuity Calculation at End of Contract in UAE
| Years of Service | Gratuity Entitlement |
|---|---|
| 1–5 years | 21 days’ basic salary/year |
| Over 5 years | 30 days’ basic salary/year |
| Less than 1 year | Not entitled |
Gratuity is calculated based on the last drawn basic salary and does not include allowances.
What Happens If Employer Does Not Renew the Contract?
If your employer decides not to renew:
They must give you written notice (typically 30 days)
You are still entitled to gratuity and full dues
You may use your grace period (30–90 days) to find another job or leave UAE
No termination ban applies if the contract ends naturally.
What If You’re Terminated Before Contract Ends?
If terminated before contract expiry, you may be entitled to:
Compensation (up to 3 months’ salary) if no valid reason is given
Immediate visa cancellation
Complaint filing via MOHRE
Always ask for a termination letter and document your situation.
Employee Obligations at End of Contract in UAE
Serve notice period (unless waived)
Return company property (ID cards, laptop, SIM)
Complete handover if requested
Sign clearance form before collecting final dues
Always get a copy of your final settlement slip and keep it for your records.
FAQs
Q: Am I entitled to gratuity if I resign at the end of my contract?
✅ Yes, if you complete your contract duration and have worked at least 1 year.
Q: Can my employer force me to renew my contract?
❌ No. Contract renewal is a mutual agreement.
Q: What if I overstay after contract ends?
⚠️ You have a 30-day grace period, after which overstay fines apply.
Q: Can I switch jobs immediately after contract end?
✅ Yes, after visa cancellation and new work permit processing.
Documents to Collect at End of Contract in UAE
Final settlement sheet
Experience or service certificate
Passport with visa cancellation stamp
Emirates ID (submit for cancellation)
Clearance letter from HR
Mahad HRC Exit Management Support
At Mahad HRC, we assist employees and employers with:
Contract review and advisory
Gratuity calculation and claim support
Full and final settlement reconciliation
Visa cancellation processing
New job placement assistance after contract ends
Our team ensures your end of contract in UAE transition is smooth and legally sound.
Conclusion
Reaching the end of contract in UAE should be a transparent, organized, and fair process. UAE Labour Law 2025 ensures employees are treated with respect, paid what they’re due, and provided with the legal paperwork to move forward.