Resigning after three years on a 12,000 AED package
A worked case from the offer letter through to the final settlement, showing where the figure comes from and the two places it is most often disputed.
The facts
- Marketing executive, Dubai mainland, private company under the federal law
- Started 1 April 2023, resigned with 30 days' notice, last working day 31 March 2026
- Package 12,000 AED: basic 7,000, housing 3,500, transport 1,500
- 14 days of unpaid leave taken in 2024
- 9 days of annual leave accrued and untaken at the end
Step 1 — the service period
1 April 2023 to 31 March 2026 is 1,095 calendar days. Less 14 days of unpaid leave: 1,081 days, which is 2.962 years.
Note that the notice period was worked, so it counts. Service runs to the last working day, not to the day the resignation was submitted.
Step 2 — the daily basic wage
This is the step that decides the answer. The wage for gratuity is basic only: 7,000 AED, not the 12,000 package.
7,000 ÷ 30 = 233.33 AED per day
Step 3 — the entitlement
Under five years, so the whole period is at 21 days a year:
- 2.962 × 21 = 62.2 days
- 62.2 × 233.33 = 14,513 AED
Step 4 — what resigning costs
Nothing. Under the law repealed in February 2022, resigning at 2.96 years on an unlimited contract would have paid two thirds — about 9,675 AED. That scale no longer exists. The full 14,513 AED is payable.
An employer or HR system still applying the old one-third and two-thirds rule would offer 9,675 AED here and it would look plausible. The gap is a third of the entitlement. This is the most common way a settlement comes in short, and it is usually habit rather than bad faith — ask for the calculation in writing and the error becomes visible immediately.
The rest of the settlement
Gratuity is one line. On these facts the final settlement should also include:
| Item | Amount | Basis |
|---|---|---|
| End-of-service gratuity | 14,513 | Article 51, calculated above |
| 9 days' untaken annual leave | 2,100 | 9 × (7,000 ÷ 30) — paid at basic wage |
| March salary | 12,000 | Full package for the final month worked |
| Notice pay | — | Notice was worked, so nothing is due in lieu |
| Repatriation air fare | — | Depends on the contract; often excluded on resignation |
Payable in full within 14 days of 31 March 2026.
The two places this gets disputed
- The basic wage. If the employer calculates on a lower basic than the contract states, or if the contract and the MOHRE offer letter disagree, that is the first thing to check. It has more effect on the total than anything else.
- The unpaid leave count. The payroll system knows the exact number and the employee usually does not. Ask for the record rather than accepting a figure.
Final settlements often include a waiver of further claims. Once signed, reopening the calculation is considerably harder. If the figure does not match your own working, resolve it before you sign, not after.
Run your own version
Enter your basic wage, your dates and your unpaid leave days in the calculator. It shows the same breakdown, and it will tell you what the pre-2022 scale would have taken.
Figures are for the case described and reviewed 2026-09-19. General guidance, not legal advice — see the disclaimer.