How to Calculate UAE Gratuity for Unlimited Contracts Under Labour Law
If you're employed under what's known as an "unlimited contract" in the UAE, calculating your end-of-service gratuity involves understanding both the current rules and a bit of legal history. Unlimited contracts have changed significantly in recent years, and a transition rule in the current law means your payout may depend on how your employer applies it. What Is an Unlimited Contract, and Does It Still Exist? An unlimited contract was traditionally an open-ended employment agreement with no fixed end date, historically common across the UAE private sector under the old Federal Law No. 8 of 1980. The current law, Federal Decree-Law No. 33 of 2021, which took effect on 2 February 2022, requires employers to convert contracts of undefined term into fixed-term contracts within one year of its taking effect, and the Minister may extend that period. If you still hold documentation referring to an "unlimited contract," it's worth confirming with HR or MOH...