Severance Pay

Old Mar 17th 2009, 6:24 am
  #16  
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Default Re: Severance Pay

Totally unclear then ... as usual with UAE administration.

My UAE Labour Department says 'unlimited', which will superceed anything on the contract I originally signed with my employer. Looks like I'm screwed.

Anyone need a Project Architect...?
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Old Mar 17th 2009, 7:07 am
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Default Re: Severance Pay

Originally Posted by Ed Pies View Post
Totally unclear then ... as usual with UAE administration.

My UAE Labour Department says 'unlimited', which will superceed anything on the contract I originally signed with my employer. Looks like I'm screwed.

Anyone need a Project Architect...?
PM Slingshot, seriously
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Old Mar 17th 2009, 12:33 pm
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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:-
Re my situation: My payout figure (NOT gratuity) states one month basic salary only. They are not including my 7000 odd dhs housing allowance in that figure. Am I legally entitled to it?

Re my shipping allowance: My contract with my company states its a one time payment of 15 000 dhs to relocate to the UAE. They have told me they do not need to pay it again and will not pay it unless I show them legal evidence to the contrary.
Literally written in my contract: xxxxxxx will make a one-off payment of AED 15,000 towards relocation expenses. This payment will be made on the first Pay Day.
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Old Mar 17th 2009, 12:37 pm
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Default Re: Severance Pay

Originally Posted by AnotherWorld View Post
Re my situation: My payout figure (NOT gratuity) states one month basic salary only. They are not including my 7000 odd dhs housing allowance in that figure. Am I legally entitled to it?

yes you are legally entitled to it.

Re my shipping allowance: My contract with my company states its a one time payment of 15 000 dhs to relocate to the UAE. They have told me they do not need to pay it again and will not pay it unless I show them legal evidence to the contrary.
Literally written in my contract: xxxxxxx will make a one-off payment of AED 15,000 towards relocation expenses. This payment will be made on the first Pay Day.

let me read labour law pdf and see what I can find on this.
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Old Mar 17th 2009, 12:46 pm
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Default Re: Severance Pay

Who bears the repatriation expenses of employees?
At the end of the contract the employer is responsible for the repatriation expenses of the employee to the place of recruitment
or to any other place which the two parties have agreed upon.. If the employee obtains employment with another employer
in the UAE, then, the new employer is responsible for repatriation expenses at the end of his service. However, if the employee
is responsible for terminating the contract, he is responsible for his repatriation costs, if he has sufficient means.
Does the repatriation of the employee mean that the employer has to also pay for furniture and family members?
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.
When does the employee have to vacate his accommodation if it is provided to him by the employer?
In cases where the employer provides accommodation to the employee, the employee is obliged to vacate the premises within
a maximum period of 30 days from the date his services were terminated. The employee may not extend this period for any
reason provided that the employer actually pays for the following:
(a) The repatriation expenses as agreed; and
(b) End of service benefits and other entitlements as provided in the terms of the employment contract or the regulations of
the establishment.
Where there is a dispute between the employer and the employee, the Ministry must make a recommendation within 2 weeks
from the date the complaint is filed, and inform the employee of the amount recommended as payable. In such cases, the 30
day period will commence from the date the employee deposits the said amount. In a situation where the premises are not
vacated, the Ministry will order the eviction of the premises with the assistance of the local police in the emirate concerned.
This is without prejudice to the employee’s right to challenge the amount recommended by the Ministry in court. The
Ministry’s decisions can be appealed to the court by either party.
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Old Mar 17th 2009, 12:47 pm
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Default Re: Severance Pay

16. PAYMENT OF GRATUITY
What is the employee entitled to on the termination of his employment contract?
On the termination of the employment contract, an employee is entitled to the following:
1. A notice period, or any amount due in lieu of the notice period in the case of an unlimited contract.
2. In the case of an unlimited contract, compensation for unreasonable dismissal if the contract was terminated by the
employer for unreasonable cause.
3. In the case of a limited contract, compensation equivalent to the period until the end of the contract, or three month’swages, whichever is shorter.
4. Payments equivalent to the balance of unutilised leave or any part thereof.
5. Payments for overtime or any balance of wages due and not yet paid.
6. End of service gratuity calculated on the duration of the employment.
7. Repatriation expenses as per the Law or the employment contact, subject to the employee not being in violation or in
breach of either the Law or the employment contract.
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Old Mar 17th 2009, 12:57 pm
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Default Re: Severance Pay

'2. In the case of an unlimited contract, compensation for unreasonable dismissal if the contract was terminated by the employer for unreasonable cause.'

I have an unlimited contract. Any ideas on what 'compensation for unreasonable dismissal' should be?
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Old Mar 17th 2009, 1:00 pm
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Default Re: Severance Pay

Originally Posted by Ed Pies View Post
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.
just checked LL and you aren't entitled to gratuity, sorry. See the information I have quoted above re the repatriation. That labour law document is as clear as mud.
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Old Mar 17th 2009, 1:03 pm
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Default Re: Severance Pay

Thanks blue cat. Ive actually sent that document to the HR person and asked them to clarify my 2 questions.
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Old Mar 17th 2009, 1:05 pm
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Default Re: Severance Pay

Originally Posted by Ed Pies View Post
'2. In the case of an unlimited contract, compensation for unreasonable dismissal if the contract was terminated by the employer for unreasonable cause.'

I have an unlimited contract. Any ideas on what 'compensation for unreasonable dismissal' should be?

I would print off the document, and hi light the clauses that apply to you, that is what I did and we got what we were owed.
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Old Mar 17th 2009, 1:11 pm
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Default Re: Severance Pay

Just checked our contract re: shipping and it clearly states the amount for shipping and also states it again in the termination section so ours is clear (luckily!) - yours only seems to state a relocation amount so it may be debatable about the amount for shipping on your repatriation. You may be best to talk to a lawyer about your circumstances as they will be able to look at your particular contract in detail and advise accordingly.Might be worth talking to your Embassy and see if they can recommend anyone.
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Old Mar 17th 2009, 1:17 pm
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Default Re: Severance Pay

Originally Posted by soukie View Post
Just checked our contract re: shipping and it clearly states the amount for shipping and also states it again in the termination section so ours is clear (luckily!) - yours only seems to state a relocation amount so it may be debatable about the amount for shipping on your repatriation. You may be best to talk to a lawyer about your circumstances as they will be able to look at your particular contract in detail and advise accordingly.Might be worth talking to your Embassy and see if they can recommend anyone.
but it says clearly in the probationary period section that if someone is terminated they pay repatriation, surely this applies for everyone out of probation period?
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Old Mar 17th 2009, 2:05 pm
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Default Re: Severance Pay

Yes I agree that the Employer must repatriate but it's the extent of that i.e the shipping allowance. The highlighted bit casts doubt in my opinion but it just depends on how you interpret it! You could say that they paid on commencement so therefore they have to pay the return.

"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, 2:45 pm
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Default Re: Severance Pay

"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."

I was paid money "towards relocation expenses" therefore IMO my company is liable to pay it again on my way out.
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Old Mar 17th 2009, 2:55 pm
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Default Re: Severance Pay

I think it just depends on what is "stipulated in the contract" which is why it's important to check the actual contract.
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