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Are free zones exempt from UAE labour law gratuity payments?

Are free zones exempt from UAE labour law gratuity payments?

Old Aug 21st 2007, 11:48 am
  #1  
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Default Are free zones exempt from UAE labour law gratuity payments?

I know I should know this, but I don't, and someone asked me so I thought I would ask here. Specifically is Tecom exempt from the end of service gratuity payments in the UAE federal labour laws?

This man has been offered seven days gratuity for three years of service.
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Old Aug 21st 2007, 12:07 pm
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Default Re: Are free zones exempt from UAE labour law gratuity payments?

Originally Posted by secretdubai View Post
I know I should know this, but I don't, and someone asked me so I thought I would ask here. Specifically is Tecom exempt from the end of service gratuity payments in the UAE federal labour laws?

This man has been offered seven days gratuity for three years of service.
NO! I can send you the details for Tecom if you like so he can call up directly to ask them.
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Old Aug 21st 2007, 12:23 pm
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Default Re: Are free zones exempt from UAE labour law gratuity payments?

Originally Posted by secretdubai View Post
I know I should know this, but I don't, and someone asked me so I thought I would ask here. Specifically is Tecom exempt from the end of service gratuity payments in the UAE federal labour laws?

This man has been offered seven days gratuity for three years of service.
1st year 21days
2nd year 30 days
3rd year 30 days
4th year 35 days
5 - 10 years 45 days per year
>11 years 60 days per year.

Be careful some companies pay on gross salary most pay on nett ie basic salary without allowances. The above rates are sanctioned by the MoL and include FZ's. If the guy was on a rolling 6 month contract then he best check with the MoL as I'm not sure what his status would be.

Trusts this helps
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Old Aug 21st 2007, 12:46 pm
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Default Re: Are free zones exempt from UAE labour law gratuity payments?

Only Criminal Laws and the UAE Federal Laws pertaining to AML are applicable to entities operating in the DIFC. The UAE Federal Laws, Code of Commercial Practice, Labour Laws etc are not applicable to the DIFC. Not sure about Tecom - you may find this information on their web site. Can try and get it tomorrow from office though.....
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Old Aug 21st 2007, 2:41 pm
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Default Re: Are free zones exempt from UAE labour law gratuity payments?

Originally Posted by oktoberon View Post
1st year 21days
2nd year 30 days
3rd year 30 days
4th year 35 days
5 - 10 years 45 days per year
>11 years 60 days per year.

Be careful some companies pay on gross salary most pay on nett ie basic salary without allowances. The above rates are sanctioned by the MoL and include FZ's. If the guy was on a rolling 6 month contract then he best check with the MoL as I'm not sure what his status would be.

Trusts this helps
I remember the redundancy package my company were offering to people when we were in trouble awhile back... people that had been there 40 years were only offered two months salary
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Old Aug 21st 2007, 2:47 pm
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Default Re: Are free zones exempt from UAE labour law gratuity payments?

Originally Posted by Cham128 View Post
I remember the redundancy package my company were offering to people when we were in trouble awhile back... people that had been there 40 years were only offered two months salary
Jeez, that's terrible, and at their age, it would be almost impossible to get another job.
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Old Aug 21st 2007, 2:52 pm
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Default Re: Are free zones exempt from UAE labour law gratuity payments?

Originally Posted by oktoberon View Post
1st year 21days
2nd year 30 days
3rd year 30 days
4th year 35 days
5 - 10 years 45 days per year
>11 years 60 days per year.

Be careful some companies pay on gross salary most pay on nett ie basic salary without allowances. The above rates are sanctioned by the MoL and include FZ's. If the guy was on a rolling 6 month contract then he best check with the MoL as I'm not sure what his status would be.

Trusts this helps
Where did you get this info from? I am almost sure my contract states 21 days up to 5 years service and thereafter 30 days.
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Old Aug 21st 2007, 3:02 pm
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Default Re: Are free zones exempt from UAE labour law gratuity payments?

Originally Posted by Slingshot View Post
Where did you get this info from? I am almost sure my contract states 21 days up to 5 years service and thereafter 30 days.
This is the standard severence settlement which I believe came into effect sometime last year. Not sure if it nullifies existing contracts. This is also applicable to FZ's I currently work in DMC which is part of Tecom (Dubai Holdings).

The whole labour laws here are a mess. It's probably worth spending a couple of hundred chips and get professional advise from a labour lawyer.
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Old Aug 22nd 2007, 5:31 am
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Default Re: Are free zones exempt from UAE labour law gratuity payments?

If I remember correctly the end of service gratuity is reduced (to one-third?) if the employee resigns of his own accord.
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Old Aug 22nd 2007, 8:41 am
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Default Re: Are free zones exempt from UAE labour law gratuity payments?

Originally Posted by Jingsamichty View Post
If I remember correctly the end of service gratuity is reduced (to one-third?) if the employee resigns of his own accord.
you're kidding me right? we just get escorted off the premises by security
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