UAE onboarding, explained from both sides.

End of Service and Termination Process in the UAE: An Employer's Guide (2025–2026)

Ending an employment relationship in the mainland UAE follows a fixed legal sequence under Federal Decree-Law No. 33 of 2021: serve written notice of 30 to 90 days, pay the full and final settlement (including end-of-service gratuity) within 14 days of the last working day, then cancel the MOHRE work permit before cancelling the ICP/GDRFA residence permit. Gratuity is 21 days' basic salary per year for the first five years and 30 days per year thereafter, capped at two years' wages, and - since February 2022 - is paid in full even when the employee resigns. A one-year work-permit ban now applies only in three narrow cases, not routinely on resignation.

1. 11. Serve written notice (30–90 days). Under Article 43, either party may terminate for a legitimate reason on written notice of not less than 30 and not more than 90 days. The worker keeps full wages during notice and is entitled to one unpaid day per week to seek new work. A party that fails to serve notice must pay a 'notice allowance' based on the last wage for the un-served period.
2. 22. Confirm the legal basis for ending the contract. Termination must fall within a lawful ground (Articles 42/43/45). Summary dismissal without notice is only allowed in the specific cases listed in Article 44 (e.g. forged documents, proven 7+ consecutive or 20+ non-consecutive days' unauthorised absence, assault, gross misconduct) and must follow a written investigation. Dismissing a worker for filing a legitimate MOHRE complaint or lawsuit is 'illegal termination' under Article 47.
3. 33. Calculate and pay the full and final settlement. Within 14 days of the termination date, pay all outstanding wages, unused-leave pay, notice allowance if applicable, and end-of-service gratuity. Gratuity (Article 51) needs at least one year of continuous service: 21 days' basic salary per year for the first five years, 30 days per year thereafter, capped at two years' wages, calculated on basic salary only. Since February 2022 resignation and termination attract the same full gratuity - the old one-third/two-thirds resignation reduction is abolished. The employer may deduct amounts the worker owes.
4. 44. Cancel the MOHRE work permit / labour contract. Submit the cancellation to MOHRE. The request requires the employee's signed acknowledgement that wages and end-of-service entitlements have been received. The work permit must be cancelled before the residence permit.
5. 55. Cancel the residence permit and Emirates ID (ICP or GDRFA-Dubai). After the work permit is cancelled, cancel the residence visa through ICP smart services (or GDRFA in Dubai). This also cancels the linked Emirates ID. Any dependants sponsored by the employee must be dealt with (cancelled or re-sponsored) before or alongside the sponsor's cancellation.

Fees and timelines vary by emirate, free zone and nationality - confirm the current figure with the regulator before you rely on it.