End of Service Benefits in UAE

Gratuity is the sum paid by the business to the workforce when an employee leaves the job. It is the right of an employee working in the UAE to get the end of service benefits. However, they should also complete their duties prescribed in the Labour law and employment contract.

 

Labour Advocates in Dubai are responsible for ensuring the employees are getting their rights. In case any employee is not getting his legitimate rights then they can get legal assistance to claim their gratuity and other benefits that are delayed wrongfully.

 

Laws related to Gratuity in UAE

 

Federal law no. 8 of 1980 of UAE governs the policies devised for granting gratuity to the employees. The salary of the worker and the number of years he has served the company are the major factors deciding how much gratuity they will be getting at the end of their service.

 

If an employee is dismissed from the job under Article 120 then he will be deprived of the end-of-service benefits. On the other hand, if the employee resigns before the expiry date of the limited employment contract or leaves without notice then he is not entitled to gratuity as per Article 121.

 

To avoid disputes between the employee and the company, it is always suggested to get the services of labour lawyers in Dubai. Legal entities ensure that the calculations are done and gratuity is handed over to the employee rightfully without any ambiguity.

 

How to Calculate End of Service Benefits?

 

The last paycheque given to the employee before the termination of the employment contract is taken as base wage while calculating the gratuity. Divide the monthly salary by the number of working days in a month to find the per day wage of the employee. The resulting amount will be calculated for 21 days to find out the end of service benefits or 30 days as per the law

 

If the employee is working under the unlimited employment contract, the gratuity amount is less if the employee leaves early as per his choice. If the employee has served the company more than a year but less than 3 years, then is entitled to one-third of the gratuity payment.

 

If the years of service of an employee lie between three to five, then he will be getting two-third of the end of service benefit. Full gratuity payments are only paid to the employees who have been serving the company for more than 5 years.

 

To Wrap up

 

Labour lawyers in Dubai are also providing services in other parts of UAE including Sharjah, Abu Dhabi, and Ajman. You can hire them to get services in devising employment contracts and paying off the gratuity as per the legislation of UAE.