flymickeyfly

Hi all,

I've scoured the forum with a fine-tooth comb (well as fine as I could get it) and I saw that this question had not been answered.

After nearly 4 years in the UAE. I'm transferring with the same company (a US multi-national) to the US. A colleague of mine claimed, and thus the nerves, that as it is a transfer and I am not actually ending service, that I would not be entitled to an end-of-service gratuity.

Is he correct?


Naveed

Millhouse

what does your contract say?

You are leaving the UAE and handing in your labour card and not passing go. You should collect it, in my view.

flymickeyfly

Simply states "ESG will be paid in accordance with UAE Labour Law"

Mogs

Agreed.

My company pays it when people transfer out of UAE to another country - same company but new contract of employment with the new company in the new country (btw my company is also a US Multi-national).

Backinthesand

Definitely.

Only ever heard of ESB's in the Middle East. Seriously doubt you will have an ESB clause in your new contract with the US division.

mentalist

Of course your Employers should pay. You are leaving the UAE after all.

busybee2

yep its an middle east thing, in lieu of pension etc.

Welivehere

Why not just ask them and/or a lawyer?

Meow

Your UAE employment will be ending so you are entitled to the full End of Service Gratuity in accordance with the UAE Labour Law. Whilst you may be technically with the same company your UAE emplyment contract will end.

Your colleage is wrong.

NorthernLad

You should get gratuity unless specifically mentioned in your contract (a colleague just moved to a big multi-national here and his contract states no gratuity upon leaving).

Meow

That's only legal if there is some kind of alternative arrangement, such as a savings plan or pension scheme,

busybee2

yes when hubs moved jobs, his eosb was reduced due to pension contributions etc.

MrBAH

When is the ESB paid? I know this sounds like an awfully stupid question, but is it paid on termination of the contract, i.e. on your last working day, or before? My question is borne out of wondering if/when this can be used, for instance, to transfer belongings back to home country, etc.

NorthernLad

This is a huge Japanese company, he took a big pay increase but waivered the EOSB. No pension or savings plan.

They have been in UAE for a long time, I'm sure it is all legal.

Meow

It should be paid with your final salary payment.