Termination Without Gratuity in UAE: In the United Arab Emirates, the end-of-service gratuity is a crucial benefit granted to employees upon completing their employment contract. However, in certain situations, employers are legally permitted to terminate an employee without gratuity. As of 2025, the UAE Labour Law clearly outlines the specific cases where this can happen.
In this article, we explore the legal grounds for termination without gratuity in UAE, explain the employee rights involved, and guide both employers and workers on what to expect.
Termination Without Gratuity in UAE Legal Cases 2025
What Is Gratuity in UAE?
Termination Without Gratuity in UAE: Gratuity, or end-of-service benefit, is a lump sum payment made by an employer to an employee upon the end of their service, provided the employee has completed at least one year of continuous service. It is calculated based on the last basic salary and years of service.
Formula (as per UAE Labour Law):
21 days’ salary per year for the first 5 years
30 days’ salary per year after 5 years
However, certain serious violations of the labour contract or misconduct can result in forfeiture of this amount.
Legal Grounds for Termination Without Gratuity
Termination Without Gratuity in UAE: According to Article 44 of UAE Federal Decree Law No. 33 of 2021, employers can terminate an employee without gratuity and without prior notice if the employee commits any of the following serious violations:
1. Falsifying Documents
If an employee is found guilty of submitting fake certificates or forged documents during recruitment, the employer can dismiss them without gratuity.
2. Probation Period Violations
If the employee is still within the probation period and fails to meet performance standards or breaches company policies, they may be dismissed without gratuity (as gratuity is only eligible after 1 year).
3. Major Workplace Misconduct
Examples include:
Physical assault at work
Harassment or threats to co-workers
Verbal abuse or aggressive behavior
These are considered gross misconduct and can result in immediate dismissal without end-of-service pay.
4. Deliberate Damage to Company Property
If an employee intentionally damages company property or causes substantial financial loss, and the incident is reported within 7 working days to the authorities, the employer can legally dismiss the employee without gratuity.
5. Violation of Safety Instructions
Especially in high-risk industries like construction or chemicals, if an employee violates occupational safety rules and puts others or company assets at risk, termination without gratuity is valid.
6. Disclosure of Confidential Information
If an employee shares confidential or classified company data, trade secrets, or client information without authorization, this can lead to termination without benefits.
7. Being Absent Without Reason
Unexcused absence for more than 20 intermittent days or 7 consecutive days without a valid reason or approval may lead to legal termination and loss of gratuity.
Employer Obligations Before Termination
Termination Without Gratuity in UAE: Even if the employer has the legal right to terminate without gratuity, they must follow proper documentation and legal steps, including:
Issuing written warnings (if applicable)
Preparing a termination letter with legal justifications
Reporting any misconduct to MOHRE (Ministry of Human Resources and Emiratisation) if required
Settling any pending salaries, unused leaves, or allowances (except gratuity)
Failing to follow due process can lead to legal disputes and employer penalties.
What Employees Should Know
If you are an employee facing termination without gratuity in UAE, here’s what you can do:
Request Clarification in Writing
Always ask for a termination letter explaining the reason for your dismissal.
Check Your Employment Contract
Ensure the employer’s actions are in line with UAE Labour Law and the terms in your signed agreement.
File a Complaint with MOHRE
If you feel the termination is unjust or you were denied rightful dues, lodge a complaint on the MOHRE app, call 80060, or visit the nearest Tawafuq center.
Seek Legal Advice
For complex cases (especially involving evidence or false accusations), consult a labour lawyer.
Can You Still Get Other Dues Without Gratuity?
Termination Without Gratuity in UAE: Yes. Even if you are not entitled to gratuity, your employer must still pay you for:
Unused annual leave
Pending salary until last working day
Travel allowance (if mentioned in contract)
Repatriation ticket (if you’re a foreign worker and it’s part of the agreement)
Case Scenarios: Termination Without Gratuity
Case 1: Fraudulent Degree
A company discovers that an employee used a fake engineering degree to get the job. The employer terminates him and reports to authorities. This is legally valid without gratuity.
Case 2: Absconding for 10 Days
An employee disappears for 10 days without notifying HR. Despite warnings, they don’t return. Termination is valid, and gratuity can be denied due to absenteeism.
Case 3: Misuse of Company Data
A marketing manager shares client data with a competitor. The company terminates them immediately. This is considered a breach of confidentiality, and gratuity is forfeited.
How to Avoid Termination Without Gratuity
Termination Without Gratuity in UAE: To ensure you are not at risk of losing your gratuity:
Be punctual and communicate clearly with HR
Avoid conflicts and follow the company code of conduct
Never share confidential information
Submit only verified documents during hiring
Stick to safety protocols, especially in technical roles
Final Thoughts
Termination Without Gratuity in UAE: In the UAE, the law protects both employers and employees. While termination without gratuity in UAE is legal under certain circumstances, it must follow due process. Employees have the right to challenge unfair dismissals, and employers must document every action properly.
Understanding your rights can help you stay protected and informed whether you’re an employee or HR professional managing terminations.