g18c

Hi, I was recently made redundant after serving 18 months on an open ended (unlimited) contract.

I understand I have accrued 30 days gratuity (21 days per year pro rata) however my company has calculated I am only entitled to 1/3 of this.

Quoting Article 137 from the UAE Labour Law:

Where a worker under an indefinite term contract abandons his work at his own initiative after a continuous service of not less than one year and not more than three years, he shall be entitled to one-third of the severance pay provided for in the preceding article. Such a worker shall be entitled to two thirds of the said severance pay if his continuous service exceeds three years up to five years, and to the full severance pay if it exceeds five years.

If I had resigned I understand where the 1/3 comes from, however I did not resign... rather the employer terminated the contract. No mention is made of this in the above Article 137.

Have I got this wrong? Would anyone be kind enough to advise? Any recommendations for decent legal advisors?

Many thanks

Blue Cat

what does it say in your contract? how much notice does each party have to give? you are entitled to 21 days per year, pro rata so you are right there. How much notice have they given you? and remember the notice salary is the full salary including benefits including housing allowances etc.

g18c

Thanks for the reply. Either party has to give 30 days notice.

They did indeed give 30 days notice, however gratuity still applies outside of this.

I got the Labour Law from here: http://www.mol.gov.ae/molinfo/showAt...ent=0&refid=72

Blue Cat

you are right, you are entitled to the whole lot not 1/3. We have just been through this and Alen1 was invaluable. He told me everything and due to him I really do think we ended up with more money than the Company were trying to give us. Let's hope he sees this, if not drop him a PM. Sorry to hear that you have lost your job. Do you have another one? what are your plans?

Jeeper

I do remember reading somewhere in the labour law that if you are made redundant you do get the full gratuity.
I also recall that no individual contract clause can over-rule a labour law so I don't think it matters what's in your contract.

g18c

Thanks Blue Cat you are a star. Did you lose your job also? Very sorry to hear that also. What are your plans?

I am actually going to start my own IT Consultancy and Building Management Systems business (all the fancy control systems inside buildings). Coming from the UK I see a lack of quality in the way stuff is done here and plan to change that, unfortunately I will need as much capital as possible and people trying to screw me out of legal entitlements doesn’t help.

Will PM Alen1, I definitely need advice on how to proceed. I can see any legal case being a long and drawn out process. Many thanks again is always good to know there is advice and support from others.

Cheers

Poitin

Yes 100% when they let you go.
Don't sign anything saying you recieved your full settlement.

You can lodge a complaint at Minstry of Labour for small fee (but guess they will be busy these days) - think something like 100dhs. We got this info 2 years ago when we had a small problem with company here. But they sorted the problem before the complaint was lodged - thankfully.

All the best

Blue Cat

yes my husband was sacked on NYE, not nice but it's in the past. Alen1 was an invaluable support to me, I will never forget his help. Good luck with the new business!! Poitin is right, sign nothing and tell them you have an appt at the labour court - even if you don't, that should do the trick

g18c

Sorry to hear that, one thing is that I think better to use the word terminated or made redundant than sacked... that brings pictures of misconduct etc which is not the case

Well as you say not nice but everything happens for a reason, there’s always a cloud with a silver lining somewhere.

The replies here have been a great help thanks so much to all. Next stage is moving forward in the correct manner and when to contact the Dept of Labour... obviously i would rather get this done though the threat of such action.

The trouble is if I say I will complain they could lodge a false made-up complaint against me... unfortunately I’ve seen it all in this country and wouldn’t be surprised at anything.

I PM'ed Alen1 hopefully for advice on best way to proceed, hope they will be kind enough to help also. Im thinking that maybe its worth getting solicitors to send a threatening letter as then it would be fully documented. This is the best part of a full month’s salary so spending a few thousand dirham’s may be worth it in this case to ensure its resolved as quickly as possible.

Alen1

PM en route.
Pls give me a little time to read the post fully.
As the man says; do NOT sign anything until you are satisfied that you have received all that to which you are entitled.

Blue Cat

nope we were defo sacked, it was all very personal to be honest with you, we are best of out of it.

Alen1

g8,
PM gone under 'Network Error'
Hope you get it OK.

g18c

Hi Alen1,

Yep got one PM from you, thanks very much. I Replied also.

Next stage for me is to go down Ministry of Labour and lay a complaint or for them to provide some form of verbal or written confirmation that 100% gratuity needs to be paid when the employer terminates the contract.

One problem of course, havent a clue where to go to lay such a complaint!

Many thanks to all that have posted so far.

Regards