The short answer is that it only matters in Saudi Arabia. In the UAE, Qatar and Bahrain you receive the same gratuity whether you resign or your employer ends the contract. But the Saudi reduction is large enough that it deserves careful planning.
| Country | Does resigning reduce gratuity? | Minimum service |
|---|---|---|
| Saudi Arabia | Yes. Nothing under 2 years, one third from 2 to 5 years, two thirds from 5 to 10 years, full after 10 years | None if the employer ends the contract |
| UAE | No, since the 2021 law took effect in February 2022 | 1 year |
| Qatar | No | 1 year |
| Bahrain | No, under the 2012 law | None. Part years are paid pro rata (Article 116) |
To isolate the effect of resigning, assume the same gratuity wage of 10,000 in local currency and 4 years of service in each country. In practice the wage figure itself would differ, because Saudi Arabia includes fixed allowances and the UAE and Qatar don't, as explained in our wage basis guide.
| Country | Employer ends the contract | Employee resigns |
|---|---|---|
| Saudi Arabia | 4 × ½ × 10,000 = 20,000 | One third: 6,667 |
| UAE | 4 × 21 × (10,000 ÷ 30) = 28,000 | 28,000 |
| Qatar | 4 × 21 × (10,000 ÷ 30) = 28,000 | 28,000 |
| Bahrain | 3 × ½ × 10,000 + 1 × 10,000 = 25,000 | 25,000 |
In Saudi Arabia, resigning at four years costs two thirds of the award, 13,333 in this example. Everywhere else the reason for leaving makes no difference to the amount.
Article 85 of the Saudi Labour Law applies the reduction when the employment ends because the employee resigned. Article 87 restores the full award in some cases, including force majeure, and a female employee who leaves within six months of marriage or three months of giving birth. Article 81 also preserves full rights where the employee leaves because the employer breached its obligations.
Since the February 2025 amendments, some lawyers argue that the reduction now applies only to resignations from fixed term contracts. That reading isn't settled, and many employers still apply the reduction to all voluntary departures. Our Saudi guide explains both views.
Because the Saudi reduction steps at 2, 5 and 10 years, a few weeks can make a large difference:
If you're within a few months of 2, 5 or 10 years of continuous service, it's usually worth checking whether your notice period can take you past the threshold.
The picture changes when an employer dismisses for serious misconduct. In Saudi Arabia, dismissal under Article 80 removes the award entirely, provided the employer follows the legal procedure. The same applies in Qatar after a lawful dismissal under Article 61. In the UAE and Bahrain, gratuity survives even a dismissal without notice, as our misconduct dismissal guide explains. In any country, a dismissal for misconduct is worth challenging if you believe the grounds weren't met, because the gratuity may depend on it.
When a fixed term contract simply reaches its end date, that isn't a resignation in any of the four countries, so the full entitlement applies. When employer and employee agree to end the relationship early, the written settlement should state how the exit is classified. In Saudi Arabia that classification decides whether Article 85 applies, so read it before signing.
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.