Can Your Employer Deny Your UAE Gratuity for Misconduct? What Article 44 Actually Says (2026)

A common belief among UAE employees is that being fired for misconduct means automatically losing your entire gratuity. This was true under the old law, but the current law reads differently. Here's what Article 44 of the current UAE Labour Law actually says, and why "misconduct" and "zero gratuity" aren't the same thing they used to be.

The Old Rule vs. the Current Rule

Under the previous law (Federal Law No. 8 of 1980), summary dismissal for gross misconduct was governed by the old Article 120, and it typically meant forfeiting your entire end-of-service gratuity. That's where the widespread belief comes from.

Under the current law, Federal Decree-Law No. 33 of 2021, summary dismissal is governed by Article 44. The text of Article 44 deals only with the grounds and procedure for dismissal and does not provide for forfeiting gratuity. Separately, Article 51 grants end-of-service benefits to a full-time foreign worker who has completed at least one year of continuous service, without carving out dismissals under Article 44. UAE law firm commentary on the new law reads it the same way. Gratuity is no longer automatically wiped out just because a dismissal falls under a misconduct ground.

What Article 44 Actually Covers

Article 44 allows an employer to dismiss a worker without notice only in ten specific cases:

1. The worker impersonated another person or submitted forged certificates or documents.
2. The worker made a mistake that caused gross physical losses to the employer, or deliberately damaged the employer's property and acknowledged it.
3. The worker violated written workplace safety instructions that were posted in a visible place and made known to the worker.
4. The worker did not perform basic contractual duties and kept breaching them despite a written investigation and two dismissal warnings.
5. The worker disclosed a work secret related to industrial or intellectual property, causing losses, a missed opportunity or a personal benefit.
6. The worker was drunk during working hours, under the influence of narcotics or psychotropic substances, or committed an act breaching public morals at the workplace.
7. The worker assaulted the employer, manager, a superior or a colleague during work.
8. The worker was absent without a legitimate reason for more than 20 intermittent days in a year or more than 7 consecutive days.
9. The worker illegally exploited their position for personal gain.
10. The worker joined another establishment without following the required rules and procedures.

These grounds are specific and cannot be expanded by internal company policy. Before dismissing a worker under Article 44, the employer must:

• Conduct a written investigation with the worker
• Issue a written, justified dismissal decision and hand it to the worker
• Where the ground is material loss or deliberate damage (ground 2), inform MOHRE within 7 working days of becoming aware of the incident

If these steps were skipped, the dismissal can be challenged through MOHRE and, if needed, the courts.

So What Actually Happens to Your Gratuity?

Here's the key distinction most people miss: gratuity forfeiture is not provided for in Article 44. An employee dismissed under this article remains entitled to gratuity under Article 51, calculated the same way as any other end-of-service payout, as long as they completed one year of continuous service.

The law does allow an employer to deduct from end-of-service benefits amounts payable under the law or a court judgment, under the conditions set in the Implementing Regulation. That is a separate matter from the gratuity entitlement itself, and the text does not allow gratuity to be withheld simply because "the employee was fired for cause".

Some websites still say Article 44 dismissals lose gratuity entirely, which repeats the old Article 120 rule. If you're facing this situation, don't rely on either side's assumption. Get your specific case confirmed.

What to Do If You're Dismissed Under Article 44

• Ask for the written decision. You should receive a written, justified dismissal citing the specific ground relied upon, not just a verbal explanation.
• Don't assume your gratuity is forfeited. Under the current law you remain entitled to it if you completed one year of continuous service.
• Check whether proper procedure was followed. If there was no written investigation or written decision, you can challenge the dismissal.
• File a complaint with MOHRE if your gratuity is withheld without explanation. Our step-by-step guide on how to file a gratuity complaint with MOHRE explains the process. If needed, the matter can then go to the courts.
• Get legal advice before accepting any settlement. Article 44 cases can be contested, and outcomes depend on the specific facts and documentation involved.

A Note for Employers

Employers relying on Article 44 must follow the procedure the law sets: a written investigation, a written and justified decision, and, for material-loss cases, notice to MOHRE within 7 working days. The grounds are specific, and a dismissal that doesn't fit one of them can be challenged. Assuming gratuity can simply be withheld because "the employee was fired for cause" is a common misunderstanding of the current law.

Frequently Asked Questions

Does gross misconduct automatically cancel my UAE gratuity?

No. Article 44 does not provide for forfeiting gratuity, and Article 51 grants end-of-service benefits to full-time foreign workers with at least one year of continuous service. Forfeiture is not automatic the way it was under the old Article 120.

What are the grounds for dismissal under Article 44?

Article 44 lists ten grounds: impersonation or forged documents, causing gross material loss or deliberate damage, violating posted safety instructions, repeatedly failing basic duties after warnings, disclosing work secrets causing loss, being drunk or under drugs at work or breaching public morals, assaulting someone at work, unjustified absence beyond the legal limit, exploiting one's position for personal gain, and joining another establishment without following procedures.

Some websites say I lose my gratuity if dismissed under Article 44. Is that right?

The text of the current law does not provide for it. Article 44 doesn't mention gratuity, and Article 51 sets no exception for summary dismissal. Some websites still repeat the old Article 120 rule. For a specific dispute, confirm with MOHRE or a licensed labour lawyer.

What should my employer give me if I'm dismissed under Article 44?

The employer must conduct a written investigation with you and hand you a written, justified dismissal decision.

What if my employer doesn't follow the correct procedure?

If there was no written investigation or no written, justified decision, you can challenge the dismissal through MOHRE and, if needed, the courts.

Is Article 44 the same as the old Article 120?

No. Article 120 was under the previous 1980 labour law and typically resulted in gratuity forfeiture for gross misconduct. Article 44 under the current 2021 law sets out the grounds and procedure for dismissal without notice and does not provide for forfeiting gratuity.

Want to check your own numbers? Use our UAE Gratuity Calculator for an instant estimate. If your employer is withholding your gratuity, our guide on what to do if your employer doesn't pay covers the next steps, and our common gratuity calculation mistakes guide covers other ways employers get this wrong.

A loan deduction is a different legal matter from misconduct forfeiture. See our guide on Can Your Employer Deduct a Loan from Your Gratuity?

This article provides general information based on the text of Federal Decree-Law No. 33 of 2021 and publicly available commentary, and is not legal advice. Article 44 cases can be contested and outcomes depend on the specific facts involved. Confirm your situation with a licensed labour lawyer or MOHRE directly. See our Privacy Policy for details on how we handle data.