UAE Gratuity Special Cases: What You Need to Know for Unique Situations
Not sure how to calculate UAE gratuity—and what counts as your payout? I’ve been there—last year, I spent hours helping a teammate untangle her payout after her job setup got complicated. Standard guides, like our UAE Gratuity Calculator guide, nail the basics for full-time or common types of jobs, but the UAE Gratuity Special Cases Guide covers unique scenarios e.g. part-time work, maternity leave, or quirky contract changes—take some extra effort to understand. This article covers those unique cases that don’t follow the standard rules.
Whether you’re a nurse, driver, office worker, or business owner, this guide simplifies UAE gratuity special cases so everyone understands their rights. Got an unusual work arrangement? Let’s sort out what you might be owed.
What Makes Special Gratuity Cases Different?
Why Standard Rules Fall Short
I reviewed the UAE Labour Law (Federal Decree-Law No. 33 of 2021) while helping Saeeda with her gratuity calculation and found that it mainly addresses traditional full-time employment arrangements. When you’re in a UAE gratuity special case, like juggling weird hours or bouncing between contracts, it’s easy to get stumped. I’ve had colleagues ask me why their payout didn’t add up, only to find their situation needed a closer look.
Types of Special Cases
Here are some examples of UAE gratuity special cases we’re elaborating, though other unique might apply depending on your situation:
- Resigning under old unlimited contracts (pre-2022 rules)
- Termination of an employee on a limited contracts with unfair dismissal
- Part-time or temporary jobs with irregular hours
- Maternity leave tweaking your service years
- Contract changes, like shifting from full-time to part-time
- Secondment to another company or entity
- Death or disability while working
- Questions about tweaking gratuity caps or eligibility
Resigning on Legacy Unlimited Contracts
Who Gets Paid
Before February 2022, unlimited contracts were the norm, but now most mainland and MOHRE-regulated free zone jobs use limited contracts. Free zones like DIFC or ADGM might still have open-ended ones. If you quit under a legacy unlimited contract, your gratuity hinges on your time on the job:
- Under 1 year: No payout
- 1–3 years: 1/3 of 21 days’ basic wage/salary per year
- 3–5 years: entitlement equals 2/3 of 21 days basic salary per year.
- 5+ years: Full 21 days for the first 5 years, then 30 days per year
A Quick Example
Assume you resign after 4 years on a legacy unlimited contract, earning AED 9,000 per month:
- 2/3 of 21 days = 14 days per annum
- Daily wage: 9,000 ÷ 30 = AED 300.00
- Gratuity: 300.00 × 14 × 4 = AED 16,800.00
Learn how legacy unlimited contracts affect gratuity with Gulf News’ comparison.
Termination on Limited Contracts with Complications
When It Gets Messy
Termination in case of a limited contract usually means full gratuity amount, but UAE gratuity special cases like unfair dismissal or redundancy can create complications. You might need a lawyer to sort out disputes and such issues.
Example Calculation
Assume you’re terminated after 6 years with a basic wage of AED 5,000:
- First 5 years: (5,000 ÷ 30) × 21 × 5 = AED 17,500
- 6th year: (5,000 ÷ 30) × 30 × 1 = AED 5,000
- Total: AED 22,500
For such disputes, follow our step-by-step gratuity resolution guide on resolving conflicts and confidently filing your MOHRE gratuity claim, if required.
Special cases include termination, redundancy, or shutdowns. If you want deeper insights, check our Company Shutdown Gratuity UAE: Absconding & Suspension (2025 Guide) to see how absconding and suspensions affect EOS.
Part-time and Temporary Workers
Why It’s Different
Part-time and temporary employees qualify for gratuity, but weird schedules or short gigs make it a UAE gratuity special case. I recall a friend wrestling with this for her side hustle—it took us ages to crack the numbers.
Pro-rating for non-full-time patterns is addressed in the Executive Regulations (Cabinet Resolution No. 1/2022).
How Hours Change Things
Your gratuity depends on:
- Hours worked compared to full-time (48 hours/week)
- Job duration
- Average daily wage
Example Calculation
You work part-time, 20 hours a week for 3 years, at AED 50/hour:
- Weekly wage: 50 × 20 = AED 1,000
- Monthly wage: 1,000 × 4.33 = AED 4,330
- Daily wage: 4,330 ÷ 30 = AED 144.33
- Full-time gratuity: 144.33 × 21 × 3 = AED 9,089.91
- Pro-rated (20/48 = 41.67%): 9,089.91 × 0.4167 = AED 3,787.78
Maternity Leave and Gratuity
How It Affects You
Maternity leave matters for working moms. Article 30 provides 60 days (45 full-pay + 15 half-pay) in the private sector, and paid portions count toward service; unpaid leave doesn’t accrue gratuity time. I’ve chatted with moms who didn’t expect this twist.
Example Calculation
You have completed 3 years of employment with a monthly basic salary of AED 8,000, which includes 60 days of paid maternity leave.
- Daily wage calculation: AED 8,000 divided by 30 results in AED 266.67.
- Gratuity formula: 266.67 multiplied by 21 and then by 3 results in AED 16,800
- Should you have taken 30 days of unpaid leave, your effective service period reduces to approximately 2.92 years, adjusting the gratuity to: 266.67 × 21 × 2.92 = AED 16,333.333 (unpaid leave will not count as service period)
Mid-Contract Changes
When Your Job Switches Up
If your employer changes up your type, like moving you from full-time to part-time, it’s a example of UAE gratuity special case. Your gratuity gets split into different periods. A teammate dealt with this when her firm fired some staff, and it was a pain to sort out.
Example Calculation
You work 2 years full-time (AED 10,000/month) and 1 year part-time (50% hours):
- Full-time: (10,000 ÷ 30) × 21 (days) × 2 (i.e. for years) = AED 14,000
- Part-time daily wage: (10,000 × 0.5) ÷ 30 = AED 166.67
- Part-time gratuity: 166.67 × 21 × 1 = AED 3,500.07
- Total: AED 17,500.07
Secondment and Gratuity
How Secondment Affects Your Payout
Secondment—when you’re sent to work for another outfit but stay on your original employer’s payroll—is a UAE gratuity special case. Your gratuity usually sticks with your original contract, and the secondment time counts toward your service years. But if your contract moves to the new company or your pay shifts, it can throw off your calculations. Continuity/transfer concepts are addressed under the new law (e.g., Articles 48–49). I recall a teammate, Tania, freaking out when she was seconded to a partner firm in Abu Dhabi—we had to dig into her contract to confirm her payout stayed intact.
Example Calculation
You’re seconded for 1 year out of 3 years with a basic salary of AED 9,000/month, no contract transfer:
- Daily wage: 9,000 ÷ 30 = AED 300
- Gratuity: 300 × 21(days) × 3 = AED 18,900
If your salary drops to AED 8,000 during the secondment year: - 2 years at 9,000: (9,000 ÷ 30) × 21 × 2 = AED 12,600
- 1 year at 8,000: (8,000 ÷ 30) × 21 × 1 = AED 5,600
- Total: AED 18,200
Death or Disability on the Job
Special Rules
Gratuity eligibility normally requires at least 1 year of service. If someone passes away or gets disabled from work, gratuity is paid in full. The employer has 10 days to pay the family or employee after the paperwork is sorted. Work-injury compensation is addressed in detail in Article 37.
Example Scenario
A technician earning AED 6,000/month dies in a work accident after 10 months:
- Daily wage: 6,000 ÷ 30 = AED 200
- Gratuity: (200 × 21) × (10/12) = AED 3,500
Can your Gratuity Cap or Eligibility Period be changed?
What’s Set in Stone
I’ve had folks ask if employees or employers can tweak the gratuity rules, like capping payouts at AED 10,000 or requiring 5 years to qualify. Article 51 sets the standard calculation (21/30 days) and a maximum cap of 24 months’ wage; eligibility requires 1+ year of service. Employers can’t legally lower the cap (say, to AED 10,000) or stretch eligibility (like to 5 years), as that would violate your rights, and UAE courts would likely strike down such terms. In short, employers can not contract below these minima; better-than-law benefits are allowed. I once knew a guy whose boss tried slipping a low cap into his contract, but MOHRE ruled it invalid after a quick complaint. That said, employers can offer better deals, like higher gratuity or including bonuses, if it’s in your contract. Some free zones, such as DIFC, follow their own legal framework and may implement alternative end-of-service schemes like the DEWS savings plan instead of the standard UAE Labour Law gratuity system. In such zones, gratuity eligibility and calculation are determined by the specific regulations of the free zone authority, not by federal labor law. Always read your contract and get a lawyer if something seems fishy.
Avoiding Common Mistakes
What Goes Wrong
I’ve seen these mistakes:
- Thinking every contract works the same
- Overlooking unpaid leave or job switches
- Not saving pay stubs or contract dates
- Trusting your boss without checking
How to Stay on Track
- Check your contract type (i.e. limited, unlimited, or free zone)
- Use our gratuity calculator to estimate your payout
- Get legal advice if things seem off
- Keep records of your work and pay history
Gratuity Comparison Table
| Scenario | Eligibility | Gratuity Basis | Applicable Law |
|---|---|---|---|
| Resignation (Legacy Unlimited) | 1+ year | 1/3 to full 21 days | Old law Art. 137 (pre-2022 portion) |
| Termination (Limited, special) | Any time | Full 21/30 days | Old law Art. 138 (pre-2022 resign-before-term) / New law Art. 51 |
| Part-time Worker | 1+ year (scaled) | Hours-based formula | Executive Regulations (Cabinet Resolution No. 1/2022) |
| Maternity Leave | 1+ year | Adjusted for unpaid leave | New law Art. 30 |
| Mid-Contract Change | 1+ year | Segmented calculation | New law Art. 51 (last basic wage) |
| Secondment | 1+ year | Based on original contract | New law Arts. 48–49 (continuity/transfer) |
| Death/Disability | Any time | Full gratuity | New law Art. 15 (pay dues ≤ 14 days); Art. 37 (work injury compensation) |
Frequently asked questions (FAQ)
Final Thoughts
UAE gratuity special cases can be a real headache to figure out. I’ve seen friends lose out on serious cash just because they didn’t read their contract closely or know what they were entitled to. Whether you’re dealing with part-time hours, maternity leave, a contract change, or a secondment, getting clued up on the rules saves you grief.
Curious about your payout? Plug your details into our UAE Gratuity Calculator. Got a question about your case? Contact us to get guidance from HR pro.
Author Bio
Articles under the name Noor Al Emarat are published by the Gratuity Calculator UAE Editorial Team. The team combines expertise in gratuity calculations, HR consulting, and UAE labour law compliance to provide clear, reliable information. From end-of-service benefits to special cases and dispute resolution, our content is designed to guide UAE employees and employers with accuracy and trust.
