Gratuity represents one of the most significant financial benefits available to employees in the United Arab Emirates, yet many workers remain unclear about its true nature and calculation. Under UAE Federal Law No. 33 of 2021, gratuity serves as mandatory end-of-service compensation that employers must provide to eligible employees upon termination of their employment contract. … Read More
The introduction of Federal Decree Law No. 33 of 2021 marked a watershed moment in UAE employment legislation, fundamentally transforming how gratuity calculations work for employees who resign voluntarily. This comprehensive reform replaced the previous 1980 labor law with provisions that significantly enhanced worker protections while maintaining business flexibility. The Pre-2021 Landscape: Limited Resignation Rights … Read More
The United Arab Emirates has implemented significant labor law amendments that took effect in 2025, fundamentally transforming the employment landscape for both workers and employers. These changes, building upon Federal Decree Law No. 33 of 2021, introduce enhanced worker protections, refined gratuity calculations, and modernized employment practices aligned with the UAE’s Vision 2071. Major 2025 … Read More
The relationship between gratuity and Cost to Company (CTC) represents one of the most misunderstood aspects of UAE employment compensation, leading to significant confusion during salary negotiations and departure planning. Under Federal Decree Law No. 33 of 2021, gratuity operates as a separate legal obligation distinct from regular salary components, though its accrual creates ongoing … Read More