UAE End of Contract Service Benefit
May 27th 2011, 4:46 am
#1
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UAE End of Contract Service Benefit
Hi there,
I am told that foreigners who work in the UAE are entitled to an end-of-service gratuity. Please tell me how one calculates this.
Thanks
I am told that foreigners who work in the UAE are entitled to an end-of-service gratuity. Please tell me how one calculates this.
Thanks
May 27th 2011, 5:07 am
#3
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Re: UAE End of Contract Service Benefit
As per Article (132) of the UAE Federal Labour Law, and in respect to the end-of-service gratuity: A worker who has completed a period of one or more years of continuous service shall be entitled to severance pay on termination of his employment. The days of absence from work without pay shall not be included in calculating the period of service. Severance pay shall be calculated as follows:
Twenty-one 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 does not exceed two years' remuneration.
It's basically about 5.5%. Some contracts provide for more - most less as they split your remuneration between salary (which accrues the EOS) and benefits which doesn't.
Twenty-one 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 does not exceed two years' remuneration.
It's basically about 5.5%. Some contracts provide for more - most less as they split your remuneration between salary (which accrues the EOS) and benefits which doesn't.
May 27th 2011, 5:10 am
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Re: UAE End of Contract Service Benefit
May 27th 2011, 5:18 am
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Re: UAE End of Contract Service Benefit
May 27th 2011, 9:03 am
#6
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Re: UAE End of Contract Service Benefit
Your gratuity entirely depends on whether you leave the company on your own or if the company's sacked you.
If you're leaving by choice the company's obligations are a lot less. 1 week for each year worked up to three years, 2 weeks for the fourth and fifth years and three weeks for each year above five.
Then, of course, there's what's written in your contract. Does the contract stipulate that it abides by the labour laws or if the offerings are on top of what the labour laws require?
You may be lucky and still get the full amount but on the other hand you may not. The HR departments out here are inefficient and clueless but there's no guaranteeing it will be in your favour.
If you're leaving by choice the company's obligations are a lot less. 1 week for each year worked up to three years, 2 weeks for the fourth and fifth years and three weeks for each year above five.
Then, of course, there's what's written in your contract. Does the contract stipulate that it abides by the labour laws or if the offerings are on top of what the labour laws require?
You may be lucky and still get the full amount but on the other hand you may not. The HR departments out here are inefficient and clueless but there's no guaranteeing it will be in your favour.
May 27th 2011, 7:33 pm
#7
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Re: UAE End of Contract Service Benefit
Your gratuity entirely depends on whether you leave the company on your own or if the company's sacked you.
If you're leaving by choice the company's obligations are a lot less. 1 week for each year worked up to three years, 2 weeks for the fourth and fifth years and three weeks for each year above five.
Then, of course, there's what's written in your contract. Does the contract stipulate that it abides by the labour laws or if the offerings are on top of what the labour laws require?
You may be lucky and still get the full amount but on the other hand you may not. The HR departments out here are inefficient and clueless but there's no guaranteeing it will be in your favour.
If you're leaving by choice the company's obligations are a lot less. 1 week for each year worked up to three years, 2 weeks for the fourth and fifth years and three weeks for each year above five.
Then, of course, there's what's written in your contract. Does the contract stipulate that it abides by the labour laws or if the offerings are on top of what the labour laws require?
You may be lucky and still get the full amount but on the other hand you may not. The HR departments out here are inefficient and clueless but there's no guaranteeing it will be in your favour.
May 28th 2011, 5:08 am
#8
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Re: UAE End of Contract Service Benefit
Your gratuity entirely depends on whether you leave the company on your own or if the company's sacked you. If you're leaving by choice the company's obligations are a lot less. 1 week for each year worked up to three years, 2 weeks for the fourth and fifth years and three weeks for each year above five.
May 28th 2011, 6:15 am
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Re: UAE End of Contract Service Benefit
May 28th 2011, 11:40 am
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Re: UAE End of Contract Service Benefit
Additionally, repatriation costs depend on the contract and where the worker was employed from. There is not an automatic entitlement to the cost of a flight to a home country, especially if the person moves to another company in the UAE.
May 29th 2011, 6:07 am
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Re: UAE End of Contract Service Benefit
You evidently don't understand my point. If you come here on a 3 yr contract and stay beyond that but decide to leave after (say) 10 yrs, it seems harsh to apply the reduced benefit calculation if you eventually leave of your own free will. Meow says that the benefits are reduced in such circumstances, which seems harsh to me...
May 29th 2011, 6:38 am
#14
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Re: UAE End of Contract Service Benefit
You evidently don't understand my point. If you come here on a 3 yr contract and stay beyond that but decide to leave after (say) 10 yrs, it seems harsh to apply the reduced benefit calculation if you eventually leave of your own free will. Meow says that the benefits are reduced in such circumstances, which seems harsh to me...
You're right - I don't understand your point..............
May 29th 2011, 11:50 am
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Re: UAE End of Contract Service Benefit
You evidently don't understand my point. If you come here on a 3 yr contract and stay beyond that but decide to leave after (say) 10 yrs, it seems harsh to apply the reduced benefit calculation if you eventually leave of your own free will. Meow says that the benefits are reduced in such circumstances, which seems harsh to me...
Why do people always assume that their situation is the only one?