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UAE LAbour Law v English Contract - Gratuity

UAE LAbour Law v English Contract - Gratuity

Old Aug 18th 2015, 9:57 am
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Default UAE LAbour Law v English Contract - Gratuity

Your UAE employment will be ending so you are entitled to the full End of Service Gratuity in accordance with the UAE Labour Law.
The above is a quote from Meow on a thread that has been closed, hence the new thread sorry.

I have a friend who signed an original English employment contract years ago which stated that gratuity was included within the monthly remuneration. After a couple of years service the Contract was amended so that gratuity was now not included within the monthly remuneration. The question is whether the final calculation should start from day 1 or day 730. The company accept that service started on day 1 but that the entitlement is from day 730.

I don't know what the Arabic contract says. Any experts know what the entitlement is? I don't think this friend would normally back out of the English Contract but I think there is a bit of bad blood so she is of the view that if she is entitled to the extra why not push for it.
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Old Aug 18th 2015, 12:07 pm
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Default Re: UAE LAbour Law v English Contract - Gratuity

She can try but if it can be proved she has already had some of these monies she won't get it twice over - and why should she? As far as MoL is concerned the contract lodged with them is the one that is valid but the law also makes reference to alternative arrangements for the EoS gratuity which are legal.

I am sure I did write what you have quoted by what was the context? She is only entitled to gratuity for the full period if she hasn't had anything to date which you are saying is not the case.
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Old Aug 18th 2015, 12:10 pm
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Default Re: UAE LAbour Law v English Contract - Gratuity

I am a bit curious because the EoS is based on the length of employment. So how can they add the EoS to the monthly salary when they have no idea if you're going to be with the company for one year or three years or more than five years?

If Boomhauer's lady friend is with her company for four years but was paid her EOS monthly based on the EOS you'd receive for only being at the company for less than three years, then yes, I can see where she'd be owed money.
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Old Aug 18th 2015, 12:51 pm
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Default Re: UAE LAbour Law v English Contract - Gratuity

Originally Posted by Meow View Post
She can try but if it can be proved she has already had some of these monies she won't get it twice over - and why should she? As far as MoL is concerned the contract lodged with them is the one that is valid but the law also makes reference to alternative arrangements for the EoS gratuity which are legal.

I am sure I did write what you have quoted by what was the context? She is only entitled to gratuity for the full period if she hasn't had anything to date which you are saying is not the case.
Thats pretty much what I thought to be fair, but she thinks it might be worth asking the question. More power to her. I'm not sure that there was a specific allocation for gratuity just a clause in the contract which said it was included.

As for the quote, it was a totally different scenario and you followed it up by saying that the company can make alternate pension arrangements. Not trying to catch you out or mis-quote you Meow and thanks for your reply.
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Old Aug 22nd 2015, 8:27 am
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Default Re: UAE LAbour Law v English Contract - Gratuity

this is puzzling - how can she be paid her EOSB as part of her monthly salary? The whole point of EOSB is that it is accumulated over the length of employment and is usually paid out in one lump sum when the employment comes to an end.

If she has already had some or all of her EOSB, then there is no way she'll get that portion again.
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Old Aug 22nd 2015, 9:34 am
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Default Re: UAE LAbour Law v English Contract - Gratuity

Originally Posted by mission View Post
this is puzzling - how can she be paid her EOSB as part of her monthly salary? The whole point of EOSB is that it is accumulated over the length of employment and is usually paid out in one lump sum when the employment comes to an end.

If she has already had some or all of her EOSB, then there is no way she'll get that portion again.
Lots of companies do it , loading it onto the monthly total payment as a separate . It's just a way of knocking the deal down and their liabilities . It's very common here in Qatar but i wasn't so certain for the UAE.

If you get it monthly / yearly or at the end of service probably doesnt matter to the Ministry it's as long as you get it in some agreed format , that's the way i see it .
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Old Aug 22nd 2015, 10:50 am
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Default Re: UAE LAbour Law v English Contract - Gratuity

Originally Posted by co durham boy View Post
Lots of companies do it , loading it onto the monthly total payment as a separate
Is there an official different metric for calculating gratuity for companies doing it that way? Because standard paid-when-you-leave gratuity is calculated on final salary as well as length of service.

Or is gratuity paid monthly in the cases of people who are employed on fixed-term contracts for a fixed sum whose final salary will always be the same as their starting salary?

Last edited by Bungdit Din; Aug 22nd 2015 at 10:54 am.
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Old Aug 23rd 2015, 6:56 am
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Default Re: UAE LAbour Law v English Contract - Gratuity

Originally Posted by Bungdit Din View Post
Is there an official different metric for calculating gratuity for companies doing it that way? Because standard paid-when-you-leave gratuity is calculated on final salary as well as length of service.

Or is gratuity paid monthly in the cases of people who are employed on fixed-term contracts for a fixed sum whose final salary will always be the same as their starting salary?
I'm not sure but taking a guess i would have the thought the deal is structured into the employers favour , i know some guys who opt for this as they work on the fact that they'll get knocked at the end so it's better to get it up front even at a reduced rate .
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Old Aug 23rd 2015, 12:49 pm
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Default Re: UAE LAbour Law v English Contract - Gratuity

Originally Posted by co durham boy View Post
Lots of companies do it , loading it onto the monthly total payment as a separate . It's just a way of knocking the deal down and their liabilities . It's very common here in Qatar but i wasn't so certain for the UAE.

If you get it monthly / yearly or at the end of service probably doesnt matter to the Ministry it's as long as you get it in some agreed format , that's the way i see it .
That's interesting, because I look after our sister company in Qatar and I am surprised that none of them have mentioned about the possibility of receiving their EOSB before employment is terminated - we have a handful of employees who have been with the company 9 plus years and haven't to-date cashed in their EOSB. But that could be due to them not wanting to cash in since the EOSB is based on final salary and ever since we took over the company (back in 2008) they've all had significant pay increases with annual increases as well. So I reckon 'proper' salaried staff are better off waiting until employment is terminated so that they get it based on their final salary.
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Old Aug 23rd 2015, 1:16 pm
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Default Re: UAE LAbour Law v English Contract - Gratuity

Originally Posted by mission View Post
That's interesting, because I look after our sister company in Qatar and I am surprised that none of them have mentioned about the possibility of receiving their EOSB before employment is terminated - we have a handful of employees who have been with the company 9 plus years and haven't to-date cashed in their EOSB. But that could be due to them not wanting to cash in since the EOSB is based on final salary and ever since we took over the company (back in 2008) they've all had significant pay increases with annual increases as well. So I reckon 'proper' salaried staff are better off waiting until employment is terminated so that they get it based on their final salary.
Unless of course you are terminated as the company went bust. It's not like there are escrow laws.
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Old Aug 24th 2015, 12:17 pm
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Default Re: UAE LAbour Law v English Contract - Gratuity

Originally Posted by Millhouse View Post
Unless of course you are terminated as the company went bust. It's not like there are escrow laws.
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