The single question that changes an end-of-service calculation the most is not your salary. It is how your contract ended. In four of the six Gulf countries, resigning and being terminated pay exactly the same. In Saudi Arabia and Kuwait, resigning early can reduce your gratuity sharply, or remove it altogether.
This guide compares the six labour laws side by side, so you know where you stand before you hand in a resignation letter.
The short answer
| Country | Resign: is gratuity reduced? | Dismissal for misconduct |
|---|---|---|
| UAE | No reduction (after 1 year of service) | Not forfeited, even under Article 44 |
| Saudi Arabia | Yes: 0 under 2 yrs, ⅓ from 2–5, ⅔ from 5–10, full from 10 (Art. 85) | Forfeited under Article 80 |
| Qatar | No reduction (after 1 year of service) | Forfeited under Article 61 |
| Kuwait | Yes: 0 under 3 yrs, ½ from 3–5, ⅔ from 5–10, full from 10 (Art. 53) | Forfeited under Article 41 |
| Oman | No reduction | Forfeited under Article 40 |
| Bahrain | No reduction | Not forfeited by Article 107 summary dismissal |
“Terminated by the employer” and “contract ended” are treated the same way in every country here: you receive the full award your service has earned, subject to any minimum service and cap.
United Arab Emirates
Under Federal Decree-Law No. 33 of 2021 (Article 51), gratuity is 21 days’ basic wage for each of the first five years and 30 days for each year after, capped at two years’ wage. You need at least one year of continuous service.
The old law of 1980 cut gratuity for employees who resigned. The 2021 law removed those reductions. If you resign after one year, you receive the same gratuity as someone who was terminated. Legal commentary also reads the new law as no longer forfeiting gratuity on dismissal without notice under Article 44. Some payroll websites still say otherwise; they are describing the old rules. Your employer may still deduct sums you genuinely owe.
UAE gratuity calculator · UAE labour law guide
Saudi Arabia
Saudi Arabia is where resignation matters most. The award under Article 84 of the Labor Law is half a month’s wage for each of the first five years and a full month for each year after, on your last actual wage (basic plus allowances).
If you resign, Article 85 scales that award:
- under 2 years: nothing
- 2 to 5 years: one third
- 5 to 10 years: two thirds
- 10 years or more: the full award
The boundaries matter. The official text of Article 85 gives one third for service of at least two years that does not exceed five years, and two thirds only once service is more than five years and under ten. Resigning on exactly your fifth anniversary therefore keeps one third; a few more days of service moves you to two thirds.
There are important exceptions. Article 87 gives the full award despite resignation in cases of force majeure, and to a woman who ends her contract within six months of marriage or within three months of giving birth. A worker who leaves under Article 81, because the employer breached the contract, also keeps full rights. On the other hand, dismissal on an Article 80 ground forfeits the award.
Since February 2025, a new Article 79-bis sets out the resignation process: a resignation is treated as accepted after 30 days unless the employer defers it, for up to 60 days.
Saudi gratuity calculator · Saudi labour law guide
Qatar
Under Article 54 of Labour Law No. 14 of 2004, you earn at least three weeks’ basic wage for each year of service after completing one year. There is no statutory reduction for resignation. One law firm has suggested gratuity may be lost if you resign without giving the required notice; no other source we reviewed says this, so treat it as unconfirmed and give proper notice anyway.
Gratuity is lost only on dismissal under Article 61, which Law No. 9 of 2026 extended to inciting an unlawful strike.
Qatar gratuity calculator · Qatar labour law guide
Kuwait
Kuwait’s Private Sector Labour Law No. 6 of 2010 pays monthly-paid workers 15 days’ wage per year for the first five years and one month per year after, capped at 18 months’ wage, on the last full wage.
Resignation reduces the award under Article 53:
- under 3 years: nothing
- 3 to 5 years: half
- 5 to 10 years: two thirds
- 10 years or more: the full amount
Article 52 keeps the full indemnity when the employer terminates, when a fixed-term contract expires, and for a woman who resigns within a year of marriage. Forfeiture applies on dismissal under Article 41.
Also note Article 42: being absent for 7 consecutive days, or 20 days in a year, can be treated as a resignation, with the reduced award that follows.
Kuwait gratuity calculator · Kuwait labour law guide
Oman
Royal Decree 53/2023 gives at least one month’s basic wage per year of service, with no reduction for resignation and no minimum service. Service before 31 July 2023 is calculated under the previous law. The award is lost only on dismissal under Article 40, which lists specific grounds such as forged documents or unexcused absence after a warning.
Oman gratuity calculator · Oman labour law guide
Bahrain
Article 116 of Law No. 36 of 2012 pays half a month’s wage per year for the first three years and one month per year after, with fractions of a year paid pro rata. Resignation does not reduce it. Summary dismissal under Article 107 removes notice and compensation, but not the leaving indemnity; the old law’s forfeiture rule was dropped.
For non-Bahraini workers, service from 1 March 2024 is paid through the Social Insurance Organization rather than directly by the employer.
Bahrain gratuity calculator · Bahrain labour law guide
Before you resign
- Check your service date. In Saudi Arabia and Kuwait, a few extra weeks can move you into a higher band, from one third to two thirds, for example.
- Find out how your exit will be recorded. “Resigned”, “terminated” and “contract ended” lead to different results in two countries.
- Ask whether an exception applies, such as the Saudi Article 87 cases or Kuwait’s marriage rule.
- Give the notice your contract and the law require. Failing to do so can cost you compensation, and in Qatar the position on gratuity is not fully settled.
Run your numbers with each reason selected in our calculators to see the difference before you decide. Results are estimates, not legal advice; confirm your final figure with your employer or labour ministry.