End of service gratuity Saudi & Gulf 2026: UAE, Qatar, Oman guide

Notice, resignation and end of service gratuity in Saudi Arabia, the UAE, Qatar and Oman: the 2026 rules, article by article.

E-TafaknaOctober 29, 2026

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Ending a job in the Gulf: what is at stake

In the Gulf, the end of an employment contract raises three questions: notice, the end of service gratuity, and the deadline for paying final dues. The rules differ widely between countries.

This guide covers the private sector in Saudi Arabia, the UAE, Qatar and Oman, based on the texts in force in October 2026. National employees are often covered by separate pension schemes.

Saudi Arabia: Labour Law as amended in 2025

Notice and resignation

The Labour Law (Royal Decree M/51 of 1426 H) was amended in 2024, with the changes in force since February 2025. According to analyses by Al Tamimi and King & Spalding, notice to end an indefinite contract is now 30 days when the employee ends it and 60 days when the employer does.

Resignation is defined as a written statement made without coercion. If the employer does not respond within 30 days, it is deemed accepted. The employer may defer acceptance by up to 60 days for a work-related reason. The employee may withdraw it within 7 days as long as it has not been accepted.

End of service award (Articles 84 to 88)

Article 84: half a month's wage per year for the first five years, then one month per later year, based on the last wage, pro rata for part years.
Article 85 (resignation): nothing before two years; one third of the award between two and five years; two thirds between five and ten years; the full award from ten years.
Article 87: full award in case of force majeure, or for a female employee who ends the contract within six months of marriage or three months of giving birth.
Article 80: termination without an award is possible only in the listed cases (serious misconduct, prolonged unjustified absence, etc.), after hearing the employee.
Article 88: final dues within one week if the employer ends the contract, two weeks if the employee does.

UAE: Federal Decree-Law 33 of 2021

Notice (Article 43)

Either party may end the contract for a legitimate reason with written notice of at least 30 and at most 90 days. The employee is paid in full during notice. A party that does not observe it owes the wage for the unserved period. If the employer terminates, the employee may take one unpaid day per week to look for work. During probation, the period is 14 days (Article 9).

End of service gratuity (Article 51)

For full-time foreign employees with at least one year of continuous service: 21 days' basic wage per year for the first five years, then 30 days per year.
Basis: the last basic wage, pro rata for part years; unpaid absence days are excluded.
Cap: two years' wage.
The employer may deduct amounts the employee owes under the law or a court judgment.
The text provides no reduction for resignation.

Payment and savings scheme

Article 53: wages and entitlements are paid within 14 days of the end of the contract.

Cabinet Resolution No. 96 of 2023 created an optional savings scheme that replaces the gratuity for employees the employer enrols: 5.83% of basic wage per month (under five years of service), then 8.33%. After a MOHRE consultation in early 2026, no general obligation is confirmed.

Qatar: Law No. 14 of 2004 as amended

Since Law No. 18 of 2020, after probation either party may terminate in writing with one month's notice if service is two years or less, and two months beyond that. A longer contractual period applies. Failing to give notice means paying the basic wage for the unserved period.

Article 54 sets the gratuity: after at least one year of continuous service, a minimum of three weeks' last basic wage per year, pro rata; the contract may provide more. According to Clyde & Co, it is not due on summary dismissal for one of the serious misconduct grounds in Article 61.

Oman: Royal Decree 53/2023

Oman's Labour Law has been in force since 31 July 2023. For an indefinite contract, notice is 30 days for monthly-paid workers and 15 days otherwise, unless the contract sets a longer period (Article 38). Missing notice is compensated with the last gross wage for the period.

Article 61: until the savings system of the Social Protection Law applies, the gratuity is at least one month's basic wage per year of service, based on the last basic wage, pro rata. Years served before the new law follow the previous scale, according to a Ministry of Labour clarification.

Article 91: dues are paid as soon as employment ends, or within 7 days if the employee abandoned the job.

For non-Omani employees, a mandatory savings system (Royal Decree 52/2023) is set to replace the gratuity going forward. Royal Decree 60/2025 postponed its start to 19 July 2027. Employers will contribute 9% of monthly basic wage. Service accrued before that date remains governed by the Labour Law.

Before you leave: the checklist

Your contract type (fixed or indefinite term) and how it ends: resignation, dismissal, expiry, mutual agreement.
The notice that applies in your country and in your contract, given in writing with proof of receipt.
Your exact length of service, excluding unpaid leave where the law excludes it.
The calculation basis: basic wage (UAE, Qatar, Oman) or last wage as defined by the Saudi Labour Law.
Unused annual leave, overtime and expenses to be reimbursed.
The legal deadline for final dues and the service certificate.
Before signing a final settlement, an itemised breakdown of each amount.

Frequently asked questions

Does resigning reduce the gratuity?

In Saudi Arabia, yes: Article 85 grants one third or two thirds depending on service, and the full award from ten years. In the UAE, Article 51 provides no reduction for resignation.

Is it calculated on total gross pay?

Not in the UAE, Qatar or Oman: the basis is basic wage, without allowances. In Saudi Arabia, Article 84 uses the last wage: check which components your contract and the Labour Law include.

Does the UAE savings scheme replace the gratuity?

Only for employees enrolled by their employer in the optional scheme under Resolution 96 of 2023. Otherwise, Article 51 applies.

Key takeaways

Notice, calculation basis and payment deadline vary by country. Calculate your entitlements before giving notice and keep written evidence.

E-Tafakna, a Tunisian LegalTech active across MENA, offers contract templates, country guides and free tools such as the formal-notice generator, useful to claim unpaid final dues.

Sources

Saudi Arabia: Labour Law, Royal Decree M/51 of 23/8/1426 H, Articles 75 to 88 (laws.boe.gov.sa)
Saudi Arabia: 2024 amendments in force February 2025, analyses by Al Tamimi & Co and King & Spalding (tamimi.com, kslaw.com)
UAE: Federal Decree-Law No. 33 of 2021 on the Regulation of Employment Relations and its amendments, Articles 9, 43, 45, 51 and 53 (mohre.gov.ae)
UAE: Cabinet Resolution No. 96 of 2023, EY tax alert; MOHRE consultation, Gulf News, February 2026
Qatar: Law No. 14 of 2004, amended by Law No. 18 of 2020, analyses by Clyde & Co and Pinsent Masons
Oman: Royal Decree No. 53/2023 issuing the Labour Law, Articles 38, 61 and 91 (decree.om)
Oman: Royal Decree No. 52/2023 (Social Protection Law) and Royal Decree No. 60/2025, analyses by DLA Piper and Al Tamimi; Ministry of Labour clarification, Oman Observer, October 2024

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