Resignation vs termination: how it changes your gratuity
In some Gulf countries, how you leave changes what you're paid. In others, it makes no difference at all. Here's where the line falls.
Four countries: it doesn't matter
In the UAE, Qatar, Bahrain and Oman, your end-of-service gratuity is the same whether you resign, your contract ends, or your employer terminates you. You've earned it through service, and leaving on your own terms doesn't reduce it. The only exception anywhere is a dismissal for serious misconduct, which is narrow and often disputed.
The UAE deserves a special mention: until 2022, resigning under an "unlimited contract" could cut your gratuity to a third or two thirds. The 2021 law abolished that. If a tool still asks whether your contract is limited or unlimited, it's working from a repealed law and will likely understate what you're owed.
Two countries: resignation reduces it
Saudi Arabia and Kuwait both scale the award down when you resign, on a ladder by years of service:
| Service | Saudi (Art. 85) | Kuwait (Art. 51) |
|---|---|---|
| Under 2 / under 3 years | Nil (<2y) | Nil (<3y) |
| 2–5 / 3–5 years | One third | Half |
| 5–10 years | Two thirds | Two thirds |
| 10+ years | Full | Full |
In both, termination by the employer pays the full amount regardless of tenure — so the same person can receive markedly more if they're let go than if they resign at, say, four years. Saudi Arabia also waives the reduction in special circumstances (Article 87): a woman resigning within six months of marriage or three months of childbirth, or anyone leaving due to force majeure, receives the full award.
See it on your numbers
The Saudi calculator and Kuwait calculator both let you switch between resignation and termination and show the reduction on its own line, so you can see exactly what your exit reason costs — or doesn't. The six-country comparison summarises the rest.
Frequently asked
Does resigning lose me my gratuity in the Gulf?
Only in Saudi Arabia and Kuwait, and only on a sliding scale — you still keep a third or two thirds in the mid-tenure bands, and the full amount at ten years. In the UAE, Qatar, Bahrain and Oman, resignation makes no difference.
Is the UAE's old resignation penalty still in force?
No. The penalty that cut gratuity for resigning under an 'unlimited contract' was repealed when the 2021 law took effect in February 2022. Any calculator still asking about limited vs unlimited contracts is out of date.
Can I be dismissed and lose everything?
Only in narrow misconduct cases — Saudi Arabia's Article 80 and similar for-cause provisions elsewhere. A normal termination by your employer pays your full entitlement; in Saudi and Kuwait it pays more than resigning.