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

Re: UAE End of Contract Service Benefit
 

Are you for real? Why else would anybody work there!

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.

Re: UAE End of Contract Service Benefit
 

Please forgive me - what is 'unreal' about simply asking what the calculation is - don't be so bluddy rude.
eish !!

Many thanks, Millhouse - I will now get back into my hole.

frown:

Re: UAE End of Contract Service Benefit
 

Oh, and they should also give you repatriation costs if you exit the country. I got the cash for three business class tickets to London when I went to Dubai via Hatta... :thumbsup:

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.

Re: UAE End of Contract Service Benefit
 

Many thanks :)

Re: UAE End of Contract Service Benefit
 

Surely, if you have fulfilled the terms of your original contract, it shouldn't matter if you leave by choice.

Re: UAE End of Contract Service Benefit
 

If you have 'fulfilled' your contract (i.e. it has finished) then you're not being sacked, are you? So the comment was valid.

Re: UAE End of Contract Service Benefit
 

Many contracts are open-ended, so whenever a person leaves of their own accord they will receive a reduced gratuity payment.



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.

Re: UAE End of Contract Service Benefit
 

Stop being such a "Mr Grumps" darling .Try and be nice sometimes!!!

Re: UAE End of Contract Service Benefit
 

Such optimism Patsy! ;)

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...

Re: UAE End of Contract Service Benefit
 

Presumably you only 'stay beyond that' if they give you a new contract?

You're right - I don't understand your point..............

Re: UAE End of Contract Service Benefit
 

No I didn't quite say that. I said that not everyone is on a fixed term contract, some are open-ended so different rules can apply.

Why do people always assume that their situation is the only one?