Re: UAE End of Contract Service Benefit
Originally Posted by jackthehat
(Post 9439012)
Thanks CRW1979 for clearing this one up - Especially the reference to 'Discounted Gratuity' - I have added your post to my 'Human Remains' file!
Meow you are 'Spot-On' as usual. However, as we all know 'Gratuity' and the way in which it is calculated, are a 'Sojourn into Sophistry' by many employers in the UAE. I would suggest that 'can include' and 'regular' are open to interpretation. "The wage used as a basis for calculating severance pay shall not include whatever is given to the worker in kind, housing allowance, transport allowance, travel allowance, overtime pay, representation allowance, cashier’s allowances, children education allowance, allowances for recreational and social facilities, and any other bonuses or allowances." Therefore with respect I do not agree (based on the provisions of the Labour Law) with the previous statement about the inclusion of bonuses for the calculation of end of service gratuity. Obviously, an employer is at liberty to offer benefits greater than those provided for under the Labour. However, as noted earlier part of the reason that many employers will still adopt the allowances/bonus structure within a salary package is so at to limit gratuity liability. Kind regards |
Re: UAE End of Contract Service Benefit
Originally Posted by crw1979
(Post 9439114)
Thanks and no problem. I hate to disagree with statements made but the provisions of the Labour Law (or at least the English translation- which is not the governing version in any event) provides as follows (under Article 134):
"The wage used as a basis for calculating severance pay shall not include whatever is given to the worker in kind, housing allowance, transport allowance, travel allowance, overtime pay, representation allowance, cashier’s allowances, children education allowance, allowances for recreational and social facilities, and any other bonuses or allowances." Therefore with respect I do not agree (based on the provisions of the Labour Law) with the previous statement about the inclusion of bonuses for the calculation of end of service gratuity. Obviously, an employer is at liberty to offer benefits greater than those provided for under the Labour. However, as noted earlier part of the reason that many employers will still adopt the allowances/bonus structure within a salary package is so at to limit gratuity liability. Kind regards |
Re: UAE End of Contract Service Benefit
Originally Posted by jackthehat
(Post 9439123)
My point exactly! - Salary is Salary! I always try to avoid allowances (on both sides of the fence)
Kind regards |
Re: UAE End of Contract Service Benefit
Pensions -v- Gratuity being discussed again.
http://gulfnews.com/business/your-mo...efits-1.822898 |
Re: UAE End of Contract Service Benefit
Originally Posted by jackthehat
(Post 9440833)
Pensions -v- Gratuity being discussed again.
http://gulfnews.com/business/your-mo...efits-1.822898 |
Re: UAE End of Contract Service Benefit
Originally Posted by OleJanx
(Post 9440953)
Any old-timers out there remember the Saudi's GOSI set-up? (dates me a bit...):)
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Re: UAE End of Contract Service Benefit
IIRC, GOSI was General Organization for Social Insurance, and was a pension, payable anywhere in the world on reaching 60, that the Saudi's forked out to expats who went to Saudi in the early Seventies until the mid eighties, albiet with with some employee contributions. In the mid-eighties, when it appeared to stop, there used to be little adverts in the UK papers advising on how to get GOSI payments back.
Different generation, I guess. Wikipedia has a (typically unhelpful) say on it. |
Re: UAE End of Contract Service Benefit
Originally Posted by crw1979
(Post 9439114)
Thanks and no problem. I hate to disagree with statements made but the provisions of the Labour Law (or at least the English translation- which is not the governing version in any event) provides as follows (under Article 134):
"The wage used as a basis for calculating severance pay shall not include whatever is given to the worker in kind, housing allowance, transport allowance, travel allowance, overtime pay, representation allowance, cashier’s allowances, children education allowance, allowances for recreational and social facilities, and any other bonuses or allowances." Therefore with respect I do not agree (based on the provisions of the Labour Law) with the previous statement about the inclusion of bonuses for the calculation of end of service gratuity. Obviously, an employer is at liberty to offer benefits greater than those provided for under the Labour. However, as noted earlier part of the reason that many employers will still adopt the allowances/bonus structure within a salary package is so at to limit gratuity liability. Kind regards |
Re: UAE End of Contract Service Benefit
[QUOTE=Meow;9442166]I'm afraid you are incorrect when it comes to gratuity and REGULAR commissions. My comments are based on rather more than just having read an interpretation of the labour law.[/Q
I think earlier you noted "bonuses" which is where I took issue with what you said. I presume that you are basing the point on "commissions" on the paragraph in a prominent local law firm's Labour Law publication which states that a UAE court judged that regular commissions would be taken into account or alternatively in relation to discussions that you have had with the Ministry of Labour which you noted in an article in the National in February. It would be interesting to see the circumstances of the judgment, particularly given that as a civil law jurisidciton there is no binding precedent as there would be in a common law jurisdiction and as such courts are free to interpret the law as they see fit in the circumstances. I would certainly be interested in you sharing any further information on this point, in particular any written advice that the Ministry of Labour have provided on this point and legal opinion you have received in support of the same. Thanks. |
Re: UAE End of Contract Service Benefit
OK so, according to the UAE Labour Laws, I should get 21 days for each of the first 5 years as gratuity, but how is the daily rate calculated? If I work 20 days a month, would it be my monthly salary divided by 20 or my monthly salary divided by the actual number of days in a month? It may sound trivial but it makes a difference of nearly AED50,000 in my case. Does anybody know?
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Re: UAE End of Contract Service Benefit
Originally Posted by mentalist
(Post 9964316)
OK so, according to the UAE Labour Laws, I should get 21 days for each of the first 5 years as gratuity, but how is the daily rate calculated? If I work 20 days a month, would it be my monthly salary divided by 20 or my monthly salary divided by the actual number of days in a month? It may sound trivial but it makes a difference of nearly AED50,000 in my case. Does anybody know?
that's how its been worked for me so far (or some variation of it). As a maths exercise :nod: so 21/21- 21/30 = 50,000 3/10 = 50,000 payout (max)= 166,000 / divided by years worked over 5 (taking 5) = 33,000aed salary approximately 9,000 USD per month? |
Re: UAE End of Contract Service Benefit
Originally Posted by mentalist
(Post 9964316)
OK so, according to the UAE Labour Laws, I should get 21 days for each of the first 5 years as gratuity, but how is the daily rate calculated? If I work 20 days a month, would it be my monthly salary divided by 20 or my monthly salary divided by the actual number of days in a month? It may sound trivial but it makes a difference of nearly AED50,000 in my case. Does anybody know?
Weasel, I made it 8k USD... |
Re: UAE End of Contract Service Benefit
Originally Posted by Millhouse
(Post 9964426)
Use 21 days. The accrual works out to be roughly 5.5% of your salary each month. Weasel, I made it 8k USD...
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Re: UAE End of Contract Service Benefit
Originally Posted by mentalist
(Post 9965039)
Why use 21 days? It should be 30 or 31 days surely assuming that it's not working days.:confused:and my salary is much less than US$9K.
Anyway, I rounded up - I calculated it at 7.5k USD...:rofl: |
Re: UAE End of Contract Service Benefit
Originally Posted by Millhouse
(Post 9965344)
I don't make up the rules :) All I know is, when I left my last place it was 21 days. They were very open about it and showed it as a monthly accrual on my payslip (5.5ish%). The law says 21 days per year, 21/365.25 = 5.7%. I think it's much easier to think of it as a %.
Anyway, I rounded up - I calculated it at 7.5k USD...:rofl: |
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