If you've read older advice about heavy penalties for leaving a 'limited contract' early in the UAE, it's out of date. Federal Decree-Law No. 33 of 2021 changed the picture significantly.
All contracts are now fixed-term
Under the current law, the old distinction between 'limited' and 'unlimited' contracts no longer exists. All private-sector contracts are fixed-term (for a defined period, renewable). This simplified the rules for ending them.
Resigning before the end
You can resign from a fixed-term contract by serving the notice period stated in your contract — typically 30 to 90 days. Both employer and employee may terminate with notice and a valid reason. The punitive early-termination compensation associated with the old limited contracts has largely been removed.
Gratuity is protected
Importantly, resigning no longer reduces your end-of-service gratuity for standard private-sector contracts. You accrue gratuity after one year of service regardless of who ends the contract. Estimate yours with our gratuity calculator.
Do it properly
- Serve the notice period in your contract.
- Provide written, dated resignation.
- Complete a clean handover.
- Keep evidence of visa and permit cancellation.
Please note: This article is general information, not legal advice. UAE labour rules are updated periodically — always confirm the current details with the Ministry of Human Resources & Emiratisation (mohre.gov.ae) or a qualified professional.