Severance Pay

Old Mar 15th 2009, 8:24 am
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Default Severance Pay

I have become another unfortunate statistic of the Dubai consrtuction crash.

I have been working since August 14th 2008, and thus do not qualify for any gratuity as I have been working less than a year.

However I have been working for more than 6 months, and I was on a 2 year contract, which would then have been indefinate (my UAE labour contract says 'indefinate').

Do I qualify for any severance pay?
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Old Mar 15th 2009, 9:06 am
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Default Re: Severance Pay

http://www.zu.ac.ae/library/html/UAE...ELabourLaw.pdf

how much notice have they given you? and sorry to hear about the job loss
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Old Mar 15th 2009, 9:48 am
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Default Re: Severance Pay

Originally Posted by Blue Cat View Post
http://www.zu.ac.ae/library/html/UAE...ELabourLaw.pdf

how much notice have they given you? and sorry to hear about the job loss
I was given 30 days notice (17 days ago). I haven't received anything in writing yet.

They have offered to keep my visa open until 30th April, and an NOC if I find a new position.
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Old Mar 15th 2009, 9:52 am
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Default Re: Severance Pay

Originally Posted by Ed Pies View Post
I was given 30 days notice (17 days ago). I haven't received anything in writing yet.

They have offered to keep my visa open until 30th April, and an NOC if I find a new position.
30 days is right according to the Labour Law but some companies have been given 3 months out of the kindess of their hearts. The 30 days is your full salary inclusive of all benefits not just your basic. You should be entitled to gratuity for the 6 months as well, well that is the way I read it. And I am guessing you have some holidays that are owed?
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Old Mar 15th 2009, 10:06 am
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Default Re: Severance Pay

Kidness of hearts will be tricky, based upon previous performance ...

I am due 8 days holiday, in accordance with UAE law.

I don't think I qualify for any gratuity as I was there for 7 months.

Should we leave the UAE, we should get the same flights and shipment package as when we arrived.

So severance pay is not obligatory on an 'unlimited' contract.
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Old Mar 15th 2009, 10:28 am
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Default Re: Severance Pay

I understand that you have to be employed for at least 12 months to qualify for a gratuity payment. The company should repatriate you back to the country you were recruited from and if they paid shipping on the way out they have to pay it on the way back. If you decide to stay and transfer to another employer I don't think you are eligible for repatriation costs.
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Old Mar 15th 2009, 7:17 pm
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Default Re: Severance Pay

if your contract stated a fixed term, then I think you would have been entitled to 3 months pay, but indefinite counts for nothing I fear..

Can anyone confirm this?
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Old Mar 16th 2009, 5:13 am
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Default Re: Severance Pay

Originally Posted by admon View Post
if your contract stated a fixed term, then I think you would have been entitled to 3 months pay, but indefinite counts for nothing I fear..

Can anyone confirm this?
I have heard this verbally but I am not 100% sure if it is in the Labour Law
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Old Mar 16th 2009, 7:24 am
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Default Re: Severance Pay

My contract with the employer states '2 year contract, then proceeding indefinately'.

My UAE labour contract says 'unlimited'.

I think it may be worth asking, as 2 months pay is serious money - especially when you have no other source of income. It will probably make the difference between staying in the UAE or going home.
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Old Mar 16th 2009, 9:34 pm
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Default Re: Severance Pay

Originally Posted by soukie View Post
I understand that you have to be employed for at least 12 months to qualify for a gratuity payment. The company should repatriate you back to the country you were recruited from and if they paid shipping on the way out they have to pay it on the way back. If you decide to stay and transfer to another employer I don't think you are eligible for repatriation costs.
Regarding shipping, my company has stated they are not legally required to pay it even though they gave it to me (15 000 dhs cash) on the way here. How do you know this is true? They told me to provide legal evidence if I want them to pay it.

EDIT: I've also been given 1 month salary payout, but they are not paying me my allowance (it says BASE ONLY). Am I also entitled to 1 month housing allowance?

Last edited by AnotherWorld; Mar 16th 2009 at 9:49 pm.
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Old Mar 17th 2009, 4:10 am
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Default Re: Severance Pay

Originally Posted by AnotherWorld View Post
Regarding shipping, my company has stated they are not legally required to pay it even though they gave it to me (15 000 dhs cash) on the way here. How do you know this is true? They told me to provide legal evidence if I want them to pay it.

EDIT: I've also been given 1 month salary payout, but they are not paying me my allowance (it says BASE ONLY). Am I also entitled to 1 month housing allowance?
notice pay is based on full entitlements, let me check the labour law PDF about the other and get back to you
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Old Mar 17th 2009, 5:08 am
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Default Re: Severance Pay

Are you talking about a gratuity payment ? If so this is calculated on your basic pay only. Re: the shipping allowance - it really does depend what is in your contract. The following is a translation of the what the labour law states:-

"If the employer has paid for the travelling expenses of the employee, his family and furniture or such provisions as stipulated
in the contract, the employer will then have to pay for the family and the furniture and any expenses incurred therewith.
However, if at the time the contract commenced there was no agreement on payment of family repatriation costs or furniture
shipment costs, and the employer did not pay for these at the commencement of the contract, the employer will not be liable
to pay the same, unless the rules within the establishment specify otherwise"
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Old Mar 17th 2009, 5:13 am
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Default Re: Severance Pay

As others have mentioned it is possible that you could be entitled to either 3 months salary or remaining term on your contract, whatever is less.
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Old Mar 17th 2009, 5:21 am
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Default Re: Severance Pay

Originally Posted by soukie View Post
Are you talking about a gratuity payment ? If so this is calculated on your basic pay only. Re: the shipping allowance - it really does depend what is in your contract. The following is a translation of the what the labour law states:-

"If the employer has paid for the travelling expenses of the employee, his family and furniture or such provisions as stipulated
in the contract, the employer will then have to pay for the family and the furniture and any expenses incurred therewith.
However, if at the time the contract commenced there was no agreement on payment of family repatriation costs or furniture
shipment costs, and the employer did not pay for these at the commencement of the contract, the employer will not be liable
to pay the same, unless the rules within the establishment specify otherwise"

so there you have it

Ed is referring to his notice payment I think, which is your total monthly salary including benefits. Gratuity is paid on your basic salary. What a mess eh
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Old Mar 17th 2009, 5:24 am
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Default Re: Severance Pay

Originally Posted by Waqs View Post
As others have mentioned it is possible that you could be entitled to either 3 months salary or remaining term on your contract, whatever is less.
I think this only applies to a limited contract.
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