Guide
Resignation vs termination: how it changes your end of service
The way your job ends can change your end of service pay by thousands. Here is exactly how each Gulf country treats resignation compared with employer termination, and how to protect your money.
Why the reason for leaving matters
End of service is meant to reward your service, but two Gulf countries reduce it if you choose to leave early. The other four pay the same amount however the job ends. Knowing which rule applies to you can be the difference between a full award and a fraction of it, so check your country before you hand in your notice.
Saudi Arabia: resignation is reduced by service band
Under Article 85 of the Saudi Labor Law, resignation reduces your award unless you have served a long time. You receive nothing under two years, one third from two to five years, two thirds from five to ten years, and the full award at ten years or more. Employer termination pays the full award. If you are close to a threshold, waiting a little longer can raise your award sharply. Run both cases in the Saudi end of service calculator.
Kuwait: resignation tiers on indefinite contracts
Kuwait applies a similar idea. On an indefinite contract, resignation pays nothing under three years, one half from three to five years, two thirds from five to ten years, and the full indemnity at ten years or more. Termination by the employer pays in full. Test your position in the Kuwait indemnity calculator.
UAE, Qatar, Oman and Bahrain: resignation does not reduce your pay
These four states do not cut your end of service for resigning once you qualify:
- UAE: since the 2021 law, resignation after one year pays the same gratuity as termination. Check the UAE gratuity calculator.
- Qatar: resignation with proper notice keeps your full gratuity. See the Qatar calculator.
- Oman: resignation does not reduce your gratuity under the 2023 law. See the Oman calculator.
- Bahrain: resignation does not reduce the SIO end of service benefit. See the Bahrain calculator.
What still reduces your award anywhere
In every country, being dismissed for a serious cause defined in the law can put your entitlement at risk. The burden of proving such a cause sits with the employer. Serving your notice period correctly, keeping written records, and getting your final salary certificate all help protect your figure.
How to protect your end of service money
- Identify your country's rule before you decide to resign.
- If your country reduces resignation pay, check whether you are near a service threshold.
- Confirm the wage basis your employer will use, since it drives the whole figure.
- Calculate both the resignation and termination cases so you know the gap.
- Keep your contract, payslips and any settlement offer for your records.
Common questions
Do I lose my gratuity if I resign in the Gulf?
It depends on the country. In Saudi Arabia and Kuwait resignation can reduce your award based on your years of service. In the UAE, Qatar, Oman and Bahrain, resignation does not reduce your end of service once you qualify.
Which GCC countries reduce end of service for resignation?
Saudi Arabia and Kuwait apply sliding scale reductions when you resign. The other four states pay the same amount whether you resign or are terminated.
Does being terminated always pay more?
In Saudi Arabia and Kuwait, employer termination pays the full award while early resignation pays a reduced share. In the UAE, Qatar, Oman and Bahrain the amount is the same either way, so termination does not pay more by itself.