UAE Redundancy Guide · 2026
Just made redundant in the UAE? Here's exactly what to do.
A calm, week-by-week plan covering your rights, gratuity, the 60-day grace period, ILOE insurance, and how to start your next chapter without the scramble.
Your first week — day by day
The first few days matter most. Not because you need to move fast, but because staying deliberate is the best antidote to the paralysis that usually follows job loss. Here's what to do, in order.
Day 1–2 · Stabilise
Tell your bank you may have a change in income — not to cancel anything yet, just to flag it. Confirm your final working day and notice period in writing with HR. Save your employment contract, offer letter, and most recent payslip somewhere outside work systems (personal email or cloud). Do not hand back your work laptop or access until you have everything you need.
Day 2–3 · Calculate what you're owed
Your employer owes you: unpaid salary to your last day; accrued but unused annual leave (at your daily rate); end-of-service gratuity if you've completed at least one full year; and repatriation costs if in your contract. Gratuity formula: 21 days' basic salary per year for the first 5 years of service, 30 days per year after that, capped at two full years' pay. Calculated on basic salary only — not allowances.
Day 3–4 · Understand your visa clock
When your employment visa is cancelled, a 60-day grace period begins automatically. You can stay in the UAE, interview, and transfer sponsorship without leaving. You cannot start work until the new visa is formally issued. If you need more time, apply for the UAE Job Seeker Visa (90 days, renewable once, around AED 300) through the ICP website or UAE PASS app.
Day 4–5 · Claim your ILOE insurance
If you paid into the UAE ILOE scheme (premiums around AED 5–10/month), you can claim 60% of your average basic salary for up to 3 months. File within 30 days of termination via the Hamayesh app or your bank's UAE insurance portal. Does not apply if you resigned voluntarily or were terminated for misconduct.
Day 5–7 · Start in parallel
Update your CV for UAE norms. Reach out to two or three former managers to let them know you're looking — quietly and specifically, not a broadcast post. Start applying on Bayt.com, LinkedIn, and The Compass. You do not need to feel ready. The earlier you begin, the more runway you have to be selective about the right next role.
Your legal rights under UAE Labour Law
Under Federal Decree-Law No. 33 of 2021, employees terminated by their employer are entitled to: full payment of unpaid salary and pro-rata annual bonus; payment for all untaken annual leave; end-of-service gratuity (if 1+ years of continuous service); an employment certificate; and proper cancellation of the employment visa with a grace period — not immediate deportation.
If your employer fails to pay any of these within 14 days of your last working day, file a complaint with MOHRE at mohre.gov.ae — free, fully online in English and Arabic, and MOHRE typically responds within 3–5 working days.
Know your runway before you negotiate
The most important number to calculate right now is your runway — how many months you can live at your current spending. Add your savings, expected gratuity, and any ILOE claim. Work out your real monthly costs. That number shapes every decision about timing, risk, and how selective you can afford to be.
Frequently asked questions
How long do I have to find a job after redundancy in the UAE?
Once your employment visa is cancelled, a 60-day grace period begins automatically. You can stay, interview, and transfer sponsorship. If you haven't found a role by day 60, you can apply for a UAE Job Seeker Visa (90 days, renewable once, approximately AED 300) through the ICP website.
Am I entitled to gratuity if I was made redundant in the UAE?
Yes. Under UAE Labour Law (Federal Decree-Law No. 33 of 2021), employees who have completed at least one year of continuous service are entitled to end-of-service gratuity on termination. The formula: 21 calendar days' basic salary per year for the first 5 years, and 30 calendar days per year after that, capped at two years' total basic salary. Calculated on basic salary only.
Should I file a MOHRE complaint if my employer hasn't paid me?
If your employer delays final salary or withholds gratuity, file a complaint with MOHRE at mohre.gov.ae — free and fully online in English and Arabic. MOHRE typically responds within 3–5 working days.
What is the UAE ILOE insurance and how do I claim it?
ILOE is a UAE federal insurance scheme. Employees who paid into it can claim 60% of their average basic salary for up to 3 months if made redundant through no fault of their own. File within 30 days of termination via the Hamayesh platform.
Can I look for a new job in the UAE while on the grace period?
Yes. The 60-day grace period is designed for this. You can interview and transfer sponsorship. You cannot start work until the new visa is issued. If you need more time, the UAE Job Seeker Visa provides 90 additional days.
Related guides
The Compass — built for exactly this moment
Free job feed, runway calculator, skill explorer, and AI career coach. No sign-up needed to get started.
Open The Compass →