UAE Labour Law - Gratuity Calculation

As per Article (132) of the UAE Federal Labour Law, and in respect to the end-of-service gratuity we quote the following: A worker who has completed a period of one or more years of continuous service shall be entitled to severance pay on the termination of his employment. The days of absence from work without pay shall not be included in calculating the period of service. The severance pay shall be calculated as follows: 21 days' remuneration for each year of the first five years of service. Thirty days' remuneration for each additional year of service provided that the aggregate amount of severance pay shall not exceed two years' remuneration.

UAE work visas- the grace period for cancelled visa may be extended

Individuals whose work visas have been cancelled, following redundancy, may soon be able to stay in the UAE for a longer period of time to find work, according to a report in Emirates Business.At present, UAE labour and immigration laws require expats who have lost their jobs, to find work within one month - or leave.The newspaper quoted Hani Rashid Al Hamli, Dubai Economic Council (DEC) Secretary-General, who said Dubai, along with the federal government, is "working on" stretching the grace period for holders of cancelled visas. The length of the likely extension wasn’t given.

The report added that the new policy, which may be announced in the first half of this year, is expected to address the potential cases of job cuts due to the financial crisis. "This is one of the top and urgent issues that we are tackling at the Dubai branch and at the federal level - to have a longer (grace) period. They are working on that, I can assure you of that," Al Hamli told the newspaper. Al Hamli, when asked whether the new policy would take affect in the second half of the year, indicated it would be earlier than that, perhaps in one month or two months, although he couldn’t go into specifics due to the government having to upgrade the immigration laws, which will take a measure of time

The six-month labour ban in Dubai may be revised or scrapped

The six-month labour ban in Dubai may be revised or scrapped altogether, a senior official said. The move comes in the wake of thousands of expatriates losing their jobs in Dubai due to tough economic conditions.Abdul Razaq Qamber, training head at the Inspection Department at the Ministry of Labour (MoL), said the ministry is set to revise a ministerial decision imposing a six-month ban on expatriate workers, XPRESS reported.Employees working outside the free zones and who resign or lose their jobs are automatically slapped a six month ban, preventing them from moving from one company to another.Qambar was speaking during a discussion on workers’ wages held on Sunday at the Ministry of Labour in Dubai.

UAE Eliminates Automatic Entry Ban: Focus Shifts to Compliance and Worker Mobilit

The UAE has fully moved past the historical practice of imposing an automatic six-month entry ban on expatriates who cancel their employment or residency visas. The automatic administrative ban, which was formally lifted in 2005, has been replaced by a modern, flexible system that encourages skilled labour mobility and only imposes sanctions for serious legal violations.

Today, the regulatory system is segmented: ICP manages residency and entry bans, while MoHRE manages work permits and labour sanctions.

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🚫 Immigration & Entry Ban: Applied for Violations Only

The primary rule is that a general ban on re-entry is not applied automatically upon routine visa cancellation. Expatriates can re-enter the UAE on a visit, tourist, or new entry permit without waiting.

An entry ban (Immigration/Travel Ban) is now strictly applied only to individuals who:

• Violate Immigration Laws: For example, overstaying the grace period, committing visa fraud, or using a visa for non-designated purposes.

• Face Criminal/Civil Action: Bans are placed due to ongoing criminal investigations, court orders, or unresolved civil claims (e.g., bounced cheques or unpaid debts exceeding AED 10,000.

• Absconding: A Permanent Ban may be imposed if an employer successfully reports an employee for absconding (leaving work without notice and illegally).

Neither administrative lists nor passport stamps are used for routine cancellation; such measures are reserved for legal violations.

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💼 Work Permit Suspension: The Modern Labour Ban

While the general entry ban has been largely eliminated, MoHRE may impose a Work Permit Suspension (often still informally called a 'labour ban') for specific violations of the UAE Labour Law (Federal Decree-Law No. 33 of 2021). This ban restricts a worker's ability to obtain a new work permit from MoHRE for a fixed period (typically one year from the date of departure).

Grounds for a One-Year Work Permit Suspension

A one-year work permit suspension is enforced in cases where the worker:

1. Breaches Contract during Probation: Terminates the employment contract during the probation period without legal cause.

2. Unlawful Termination: Unilaterally terminates a contract without adhering to the required notice period.

3. Work Abandonment: A valid "work abandonment" report is filed and proven against them.

4. Fictitious Establishment: The worker's permit was cancelled because the employer was proven to be a fictitious company.

Grace Periods After Visa Cancellation

The old, rigid 30-day grace period has been replaced with a flexible system tied to the worker's skill level and visa type. This allows people more time to adjust their status or find a new job without leaving the country.

Residency Type/Skill Level	Grace Period (After Expiry/Cancellation)
Golden & Green Visa Holders	180 days
MoHRE Skill Level 1 & 2 Professionals	180 days
MoHRE Skill Level 3 Professionals	90 days
Most Other Employment Visas	30 to 60 days

Work Permit Suspension Exemptions

The one-year work permit suspension does not apply to several categories, making it easier for skilled workers to switch jobs immediately:

• High-Skill/Specialised Professions: Workers with professional skills required in the UAE market.

• Golden Visa Holders.

• Workers sponsored by family members.

• Workers moving to government departments or free zones.

The modern system is designed to penalise non-compliance while maximising labour mobility for skilled individuals who adhere to their contractual and legal obligations.

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You might be interested in a video summarising the Current MoHRE Labour Ban Rules and why they are implemented.