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Saudi Arabia, UAE, Qatar and Bahrain

Can you lose your gratuity? Dismissal for misconduct in the GCC

Every GCC labour law lets an employer dismiss an employee without notice for serious misconduct. What happens to the gratuity after that is not the same everywhere. In Saudi Arabia and Qatar a lawful misconduct dismissal wipes it out. In the UAE and Bahrain it doesn't. Here are the grounds, the procedure, the deductions and your options.

In this guideThe four countries at a glanceSaudi Arabia: Article 80UAE: Article 44Qatar: Article 61Bahrain: Article 107Lawful deductions from gratuityAbsconding and absence reportsIf you think the dismissal was unfair

The four countries at a glance

CountryDismissal without noticeAbsence groundGratuity after a lawful dismissalDeductions
Saudi ArabiaLabour Law, Article 80More than 30 days in a contract year or more than 15 consecutive days, after written warningsForfeitedWork related debts (Article 88)
UAEDecree Law No. 33 of 2021, Article 44More than 20 non consecutive days or more than 7 consecutive daysKeptAmounts due under law or a judgment (Article 51)
QatarLaw No. 14 of 2004, Article 61More than 15 days in a year or more than 7 consecutive daysForfeitedAmounts the worker owes (Article 54)
BahrainLaw No. 36 of 2012, Article 107More than 20 intermittent days or more than 10 consecutive days in a year, after written warningsKeptNo gratuity specific rule verified

Saudi Arabia: Article 80

● Clearly stated in the law

Article 80 of the Saudi Labour Law allows the employer to end the contract without award, notice or compensation in a closed list of cases. They include assault on a manager, failing essential duties despite a written warning, dishonesty, a deliberate act causing material loss, forgery, disclosing trade secrets and unexcused absence beyond the limits above. The employer must give the worker a chance to state their objection before dismissing. Article 80 was not among the articles changed by the amendments in force since February 2025.

Example: a wage of 12,000 SAR and 7 years of service.
Normal full award: 5 × ½ × 12,000 + 2 × 12,000 = 54,000 SAR
Lawful dismissal under Article 80: 0 SAR
If the Labour Court finds the grounds weren't proven, the full 54,000 SAR is due, plus compensation under Article 77.
Source: Saudi Labour Law, Articles 77, 80 and 84.

UAE: Article 44

● Clearly stated in the law

Article 44 of Federal Decree Law No. 33 of 2021 lists ten grounds for dismissal without notice, including false documents, an admitted error causing material loss, breaching safety rules, failing to perform duties after two written warnings, disclosing work secrets, intoxication or immoral acts at work, assault, unexcused absence and working for another employer unlawfully. The employer must first hold a written investigation, and the dismissal decision must be written and reasoned.

Nothing in Article 44 or Article 51 removes the gratuity. This is the big change from the old Federal Law No. 8 of 1980, which let employers withhold gratuity after a summary dismissal.

Example: basic salary of 15,000 AED, 6 years of service, dismissed under Article 44 for absence, with a 5,000 AED company loan outstanding.
Daily basic: 15,000 ÷ 30 = 500 AED
Gratuity: (5 × 21 × 500) + (1 × 30 × 500) = 67,500 AED
Less the loan: 62,500 AED payable
Source: UAE Federal Decree Law No. 33 of 2021, Articles 44 and 51.

Qatar: Article 61

● Clearly stated in the law

Article 61 of Labour Law No. 14 of 2004 opens by allowing dismissal "without notice and without payment of the end of service gratuity". The grounds include a false identity or documents, an act causing gross financial loss (notified to the labour department within 24 hours), repeated breaches of safety instructions, repeated failure to perform essential duties, disclosing secrets, intoxication at work, assault, a final conviction for a crime of dishonour, and unexcused absence. Article 64 lets the worker challenge a dismissal.

Bahrain: Article 107

● Clearly stated in the law

Article 107 of Labour Law No. 36 of 2012 lists eleven grounds for termination "without notice or compensation". Absence dismissal must be preceded by a written warning after 10 intermittent or 5 consecutive days. The word compensation refers to the unfair dismissal payment, not the leaving indemnity. Article 116 grants the indemnity on termination of employment without any misconduct exclusion, and the 2012 law deliberately dropped the forfeiture found in the older law.

Lawful deductions from gratuity

Even where gratuity survives, the employer can usually recover genuine debts from it. Saudi Article 88 allows work related debts. UAE Article 51 allows amounts due by law or a judgment, under conditions in the Executive Regulation. Qatar Article 54 allows amounts the worker owes. A typical example is an unpaid loan balance. Fines, training costs and damage claims are a different matter and are often disputed, so ask for the legal basis and a written breakdown.

Absconding and absence reports

● General principle, less specific sourcing

An employer can report an employee for absence through the ministry systems (in Saudi Arabia a work absence report on Qiwa, often called huroob). A report is an administrative step, not a finding of misconduct. In Saudi Arabia and Qatar gratuity is only lost if the absence actually meets the Article 80 or Article 61 thresholds and the procedure was followed. In the UAE and Bahrain absence can justify dismissal but doesn't by itself cancel gratuity. If a report is filed against you wrongly, contest it quickly with the ministry and keep evidence of where you were.

If you think the dismissal was unfair

  1. Ask for the dismissal decision in writing, with the ground relied on and the investigation record.
  2. Check the procedure: warnings, the chance to respond, and the absence counts. A missing step is often the strongest argument.
  3. Don't sign a final settlement that waives claims until you've decided whether to dispute.
  4. File promptly: Saudi Arabia through the ministry's amicable settlement and then the Labour Court, the UAE with MOHRE, Qatar with the Labour Dispute Settlement Committee, Bahrain through the Ministry of Labour and the courts. See our claims guide.

If the dismissal is overturned, the gratuity comes back in Saudi Arabia and Qatar, and an unfair dismissal payment may be added (Saudi Article 77, Bahrain Article 111). Outcomes depend on evidence, so take advice on your own case.

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Reviewed by the Gratuity Tracker editorial team

Checked against the published labour law text for each country. Where the law is unclear or interpretations differ, we say so. Last verified 5 October 2026.