UAE Gratuity and Company Mergers or Ownership Changes: Does Your Service Continue? (2026)
If the company you work for has been acquired, merged with another business, or changed ownership, you might be wondering what happens to your years of service and your gratuity. This is different from a company simply shutting down or going bankrupt — here, the business keeps operating, just under new ownership or a new legal structure. This guide explains how UAE Labour Law treats this situation and what it means for your end-of-service benefits. Does a Change in Ownership Reset Your Service? Under UAE Federal Decree-Law No. 33 of 2021, when a business is transferred, sold, or merged with another entity while continuing to operate, this is generally treated as a transfer of the establishment rather than a termination of employment. In most cases, your continuous service is preserved, and the new owner or merged entity inherits the obligations of the previous employer — including your accumulated gratuity liability. This is an important distinction from cases where a company ge...