As per Article (132) of the UAE Federal Labour Law, and in respect to the end-of-service gratuity we quote the following: A worker who has completed a period of one or more years of continuous service shall be entitled to severance pay on the termination of his employment. The days of absence from work without pay shall not be included in calculating the period of service. The severance pay shall be calculated as follows: 21 days' remuneration for each year of the first five years of service. Thirty days' remuneration for each additional year of service provided that the aggregate amount of severance pay shall not exceed two years' remuneration.
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21 working days or 21 calander days?
if you are made redundent can the company ask you to pay for the furniture they provide and you don't want?
is that applicable for all company?Because our company only 15 days per anum.
if the employee resigned before 24 month of the
completion of contract agreements, what is the amount of gratuity to be calculated.
Sir,
I have joined one construction company as a site engineer from 17-12-2007. Now the company terminating verbally without notice. What is my EOSB with gratuity to be calculated.
Dear
who has to pay visa/hotel charges on hiring an employee by a company registered in UAE
Dear sir,Is that UAE gratuity law is applicable for hamariyah free zone visa
an individual wanted to transfer to a company with a better offer but still having a credit in a present company, in which an individual wanted to sign for an agreement that would still be paying the amount, even if he is transferring, please advise if there is legitimate law on this...
The standard employment contract is three (3) years. If the employee will pre-terminate his contract (meaning less than 3 years), what would be the basis of calculating the gratuity pay? Will it based on 21 days per year of service or just 7 days for every year of service?
HOW MUCH WOULD IT BE THE CALCULATION OF THE GRATUITY IF THE WORKER HAD RESIGNED TO THE COMPANY AFTER SEVEN CONSECUTIVE YEARS OF SERVICE.
My friend had been working with a company for 3 ears and 9 months and was recently terminated without any reason,according to the company his gratuity was calculated 7 days per year only. His basic salary is Dhs. 1,400.00. My question is, is their calculation of his gratuity correct and is he entitled of a single journey ticket wether he goes home or not?
Dear Sir,
I joined in a construction company for 2 years and 4 months now. I have a limited contract dated 4 june 2008 - 3 june 2011. Due to salary delayed i resigned from my job. My questions are. I am entitled for a gratuity since i have limited contract and i resigned? For the computation of annual leave, should it start from the day i joined the company or the contract date. Please help me..if you can publish your answer in the Gulfnews "Ask the Law" it would be very helpful for me.
how long should it take to be paid moneys owed to you after been made redundent,can the company withhold paymentsowed to you before been made redundant
I am a labour law expert and want to help people.
T. Bahadur
Hi
On the face of it I understand that if you've worked at a company between 1 and 5 years, you should get 21 days of gratuity pay per year.
But then there's this strange information that I found that says something about only getting 7 days pay per year if you worked less than 3 years and 14 days pay per year if you worked less than five years.
Which information is correct??
Sir, I have a limited Contract based on my UAE contract. I am planning to just finish my contract. Based on my Labor card my contract will be finished 10th of June 2011. I want to know how much they will give for my grauity. My company is not giving fair salary, since 2009 he reduced our salary until now they did not return it back... Please help me how to compute my gratuity so when the give the money i have an idea whether they are giving the right amount or not. Espescially i am pregnant now, i want to look for another job after i come back from my delivery next year fab. 2011. i will give prior notice atleast 3month before my contract ended so they have time to look for a new secretary.... Since I am a ceasarian delivery, I have requested them that aside from my 45days materleave am asking to give them also in advance my annual leave salary... They said they will not give. But i need the money badly since ceasarian is very expensive compared to normal delivery. Do i have the right to ask for this? Please help and advice all my inquiry. I am expecting your feedback. please advice.
Best regards, Valerie
Hi, a few questions:
a) How many days the year is calculated? .. 360?
b) How many month are calculated? .. 12?
c) I assume Only basic salary is calculated ( .. housing allowance, bonus, etc .. to be excluded)?
Txs
How much gratuity can I get . I may complete 6 years with the same employer, and which salary will be calculated the present agreements or my first aggreemnt.
Hi i work in a freezone company. and i have completed 1.5 years. Question is
CAse 1
a.Im wondering what will be my gratuity? is it 7 days or am i entitled to a full gratuity since i work in a freezone? can you please provide a link to your source or reference to labour law?
CASE 2
Also, my friend works in a none freezone area. she had completed her 3 year contract but she wont be renewing her contract. Question is
b. How many days should be entitled to her since she did not resigned but is not renewing her contract. Also, can you please provide a link to your source or reference to labour law?
I would appreciate any help.
thank you very much
miss m.
Sir,
I want to ask how or what is the basis of computation of 21 days for gratuity. Is it basic salary or lump sum because I already completed almost 4 years in my company but my basic salary on the labor contract didn't change even though I'm receiving increments.
Hope to hear from you Sir.
hii all, the gratuity calculation goes like this...
For Unlimited Contract
Less than 1 year - Not eligible
More than 1 year Less than 3 Years = @ 7 days
More than 3 years Less than 5 Years = @ 14 days
For Limited Contract
Less than 1 Year - Not eligible
Completion of Contract (3 years) = @ 21 days
Non completion of contract = NIL
COMMON FOR BOTH CONTRACTS
More than 5 years of service = full pay (i.e first 5 years 21 days and remaining years 30 days)
hope this is useful...naveen (0505869589)
I was working in one of the muiltinational comapny from past 16 years (strating from january 1995 to august 2010) continuouis service and recently i got the termination letter sayinng redundancy of manpower.my company used to give me gratuity amonut every end of the year based on that year current salary till 2003. and after that they stopped paying gratuity amount, so i would like to ask whether i will get the gratuity with my present salary for whole 16 years deducting the amount what they paid till 2003 or they will give me onlt the present salary from 2004. what does the dubai labour law says pleas help me out if someone can clarify the above
I am working a company in Ajman 4 years
before 1 month i get Resignation Letter
but he told me Not Gratuity and other benefit
Can you help me
I am studying b.tech in distance education in India.I will attend exam in DEC 2010. I am asking the leave to my company they said you will not attend the exam.
What can i do it?
I have worked for a lubricant company for 4yrs and I want to terminate my job. I went for maternity leave 5months as it was agreed before going. Upon returned my boss has refused to pay for my salary & air ticket. Now I want to resign The question is am I entitle to any allowance?
gud gratuity calculation
IF YOU RESIGN FROM YOUR COMPANY, EXCEPT GRATUITY, WHAT OTHER BENEFITS YOU CAN GET? Do they still pay you for your Unpaid leave?
if you resign after two years you get 15 days per year. if you get terminated than its 21 days per year. everything under two years its seven days per year!!
good luck
No one has really answered the question;
Are the 21 days calendar days or working days it is a difference of 30%.
Mohammed
hi ,
so many questioned arised from this column, but they don't ask about how the gratuity be calculated. yes! 21days and 30days was mentioned as uae law. but how would you calculate the gratuity? is it the 21 days be the multiplier of your basic salary? please give me the specific formula on how the gratuity be calculated.
how many days is the employee entitled for vacation pay after the completion of one year..... would appreciate if you can show me the proper calculation
SIR/MADAM...
IM WORKING WITH MY BOSS 4YEARS. BUT THE 1YEAR IS VISIT VISA. MY QUESTION IS INCLUDED MY 1YEAR VISIT VISA CALCULATION GRATUITY FEE?
hi,i got a verbal termination without notice due to redundancy/recession and m less than 2yrs.m i entitled to ban?
SIR, I HAD BEEN WORKING IN ONE CONSTRUCTION CO HERE FROM 15TH AUG 2006 TILL 31ST OCTOBER 2010. MY SERVICES TERMINATED DUE TO PRESENT CRISIS. WHAT WILL BE MY ESB CALCULATION? 21 DAYS PER YEAR? AWAITING YOUR PROMPT RESPONSE. THANKS AND REGARDS, REVIKUMAR, EMAIL: vpravikumar2006@gmail.com/Mob. 0559573160
Kumar,
Sir, I had been working in one marketing co here from 3 jan 2010 to 18 feb 2011. I got termination.My contract is unlimited contract. In 2010 i did't get my vacation leave, now i will that leave salary ? and how much is my End of services Days ? awaiting for ur reply. mail id abhi.rbs@gmail.com
The 21-days salary calculated on which amount ? current salary while leaving job or at the time of joining the company ??? In labour contract salary is different than actual what will be the actual calculation
Sir, i been working in one company here in Ras Al Khaimah. This Company is under the UAE law. I want to resign, actually i pass already my resignation one month notice. But the HR did not accept my resignation. He says that if i want to cancel my visa i'm the one will pay the expenses. As far as i know sir if one employee completed 1 year s/he will not pay anything. If ever i will pay my cancellation. How much i will pay for that? Because in the Management i work in this company they will more collect money. Pls help me what is best thing to do. I'm waiting for the answer.Email: tine_831@yahoo.com/mobile 0505901847
http://www.associatedcontent.com/article/2432108/understanding_uae_labour_laws_with.html?cat=17
Explains it all in detail
I pass my resignation already sir, then hr told that the general manager refused my resignation. What you can advice me? i want to resign any how. pls help me. Before there are staff resigned 1 year completed but they let them to resign.
hi ,
I joined in a company on 10-january-2008 and resigned there from 05-march-2011. it was a 3 year limited contract visa. I had completed 3 year contract period. what will be the gratuity days i have to get ? 14 days or 21 days ? please help me
I have the following doubts...
Gratuity Calculation:
1. Based on Last month's Basic Salary...Right ?
2. 1 Month = 30 or 26 Days ?
3. 1 Year = 365 or 360 or 312 Days ?
( - days of absence from work without pay)
4. Period starts from joining Date or Contract Date Or Visa Starting Date ?
Best Regards,
Raj
Everybody here seems to be confused on the calculation and cannot get an answer. I will try my best to show the computation but if there is anybody who can show the exact calculation please do so. this is only base on my understanding of the law above.
let me just remind you all that gratuity is solely and only calculated in your "Basic Salary". Please follow the example below.
Basic Salary: AED 8,250
No. of Yrs. in the Company: 4 & 1/2 or 4.5 yrs.
In this case 21 days calculation per yr. is what you will be getting since you did not work for more than 5 yrs.
First, devide the AED 8,250 (basic salary) by 30 days (1 month) and multiply by 21 days (if work period is between 1 - 5 yrs.)
AED 8,250 / 30 days * 21 days = AED 5,775 (total amount per yr.)
Second, Multiply AED 5,775 (total) by 4.5 yrs (no. of yrs. worked in the company)
AED 5,775 * 4.5 yrs. = AED 25,987.50 (total gratuity you will be receiving more or less)
Note: this is solely base on my understanding and if anybody knows it more accurately kindly correct my mistakes.
Now, if you have un-used leaves it should be paid as well together with your gratuity and last month pay (if not yet paid previously. If you have un-used air ticket, it should be paid as well but most of the company follow their policy which most of the time they don't add already in the computation (in short, they don't pay for it).
For the deductions, well, if you have advances they would definitely deduct it.
If your visa is limited and you did not finish your contract, they would definitely deduct any un-used visa expenses also.
If your visa is unlimited, from what I do know and understand even if you don't finish your contract they should not deduct anything but in most cases most companies do and it's up to you if you want to complain in the labour, you have the right to complain. But if it is just a small amount don't waste your time and money going back and forth (this is just a suggestion, it's still up to you).
well, that's it for me. I have explained what I know. any correction you might need to do, pls. do the needfull. let's help those who are confused and needs help.
regards.
I've been working for the past ten years with a basic salary of 2100 in my contract. Increment is only added to allowances every time i renew my contract. They say it is a common practice here in Abu Dhabi. They have shown an article from newspapaer about computation of gratuity using 14 days...something. Please clarify on this matter. Show also how my gratuity will be computed in accordance to UAE Labor Law. Please have a clear rule on this and possibly have it print in Newspaper. (Please enclosed my name for I will be in trouble with my employer the moment they learned about this enquiry) Thanks and God Bless.
I've been teaching in a school for more than 8 years now and I am planning to resign this coming vacation but my contract will still end this November. Can my employer impose a ban on me? Next academic year will start by August. When is the most ideal month for me to submit my resignation letter.
When should a calculated Gratuity be released? To whom we can approach if we think our employer is delaying the release of this gratuity? After how many days should gratuity be released after submitting the letter of resignation? Can we seek a free assistance from MOL if we encounter any problem with our employer? Some who resigned just got their gratuity after a year or more and using a computation of 14 days...in graduity. Please clarify about this policy.
Dear,
If you are in limited cyou are entitled to 21 days salary for every year of employment less than 5 years, and 30 days salary for each year of employment over 5 years, up to a maximum of 2 years salary.
Limited contract holders shorter than 1 year-No gratuity
If yes, then the amount is according to the following:
Employed for less than 1 year - no gratuity
Unlimited contract:
Employed between 1-3 years - 7 days for each year of employment (1/3 of the limited contract amount)
Employed between 3-5 years - 14 days for each year of employment (2/3 of the limited contract amount)
Employed longer than 5 years - 21 days for each year up to 5 years, and 30 days for each year after 5 years (same as for limited contract holders). Maximum limit of 2 years worth of salary.
Dear,
If you are in limited contract entitled to 21 days salary for every year of employment less than 5 years, and 30 days salary for each year of employment over 5 years, up to a maximum of 2 years’ salary. Limited contract holders shorter than 1 year-No gratuity
Unlimited contract:
Employed between 1-3 years - 7 days for each year of employment (1/3 of the limited contract amount)
Employed between 3-5 years - 14 days for each year of employment (2/3 of the limited contract amount)
Employed longer than 5 years - 21 days for each year up to 5 years, and 30 days for each year after 5 years (same as for limited contract holders). Maximum limit of 2 years’ worth of salary.
You are entitle to get the gratuity at the time of cancelling the visa. incase delayed you can contact labour department to get relef
Regards
Thanks for clarifications regarding Gratuity Calculation. How about the practice of most employers who are not adding "increment" in the basic salary but only in allowance part so by the time of gratuity calculation, it will be less. Is there any policy of compulsory increment in the basic salary every time the contract is renewed? I am really afraid of my position of asking this but I hope the Ministry of Labor will send a Memorandum to all Companies,School Management and other business firms about clear computation of Gratuity. Is there any penalty if they are caught of computing the gratuity in unfair manner? Imagine an employee working for more than 8 years "unlimited" contract whose current total salary is 5000 AED but in the contract the basic salary is just 2100 AED up to now. Most employees are so helpless to renew their contract in this situation just to keep their job. More power to you and hope you can really help us. Shukran...
I am a Teacher and my contract will expire by coming November. Am I violating any policy if I will resign this July? I am just thinking that it would be more appropriate to resign during summer vacation than at the middle of the academic year. Will it affect the computation of my gratuity? unlimited contract for 8 years but still the basic salary is 2100 in contract but currently receiving a gross pay of 5000 AED monthly because of additional allowance. Please advise me the step-by-step procedure in filing my resignation. What if the principal will refuse to sign my notice of resignation? (for my copy that he received my notice)What shall I do?
Dear, you can give one month notice and leave the employer. Law is not enforcing the employer to increase the basic salary.
Regards
hi,
I started working from June 16, 2010 until May 31, 2011 but I only got 5 days vacation.
on my last pay I just recieved my last working day payment and 10 days leave payment nothing else. No end of service.My VISA is under DMCC.
Hope to hear from you soon.
Thank you.
JB
bien@europe.com
Sir,
One of my employee has given resignation, he has unlimited Agreement.
He has finished 1 Year 6 Months and 10 Days service in the company.
Did he entitled for 21 days per year or he will get 1/3 of his salary for each year, what about 6 months and 10 days service.
How to calculate the Gratuity, pls direct us.
Unlimited or indefinite contract holders
With notice period specified in UAE Labour law (usually 30 days) then the amount is according to the following:
Employed for less than 1 year - no gratuity
Employed between 1-3 years - 7 days for each year of employment (1/3 of the limited contract amount)
Employed between 3-5 years - 14 days for each year of employment (2/3 of the limited contract amount)
If you employed longer than 5 years - 21 days for each year up to 5 years, and 30 days for each year after 5 years (same as for limited contract holders). Maximum limit is of 2 years’ worth of salary.
Unless the employer has not fulfilled their obligations according to the UAE Labour Law, or the employer has assaulted the employee (Article 121 conditions for permission to leave employment without notice). You might have to file a case with the Ministry of Labour in the UAE to claim your gratuity in this case.
Gratuity is calculated on base salary only, any additional allowances are ignored. Employees who are entitled to a gratuity will have it calculated pro-rata for part-years of employment. It is common for employees in the UAE to be on a limited contract which is renewed repeatedly after completion of the fixed term. The gratuity applicable in this case should be that for a limited contract. But check carefully what your contract says.
there is a friend of mine who lost the job and now going back to homeland after cancellation but his wife whose on his sponsorship is not giving her passport for cancellation as she is living separately and doing job under his sponsorship, his company will not give his gratuity till he submit all the passports, i want to now is there any way to come out of it, except negotiating with the wife bcoz its useless.
hi goodday Sir,
in relation about the gratuity am i a private employed,im entitled in a gratuity?
am i working since 2007 MAY up to now but the problem is my employer need to back to there country for good and they just renewed my contract last APRIL.Can u please help me to calculate my gratuity?please send the calculation in my email rhyss_1706@yahoo.com.ph
THANK YOU VERY MUCH.im waiting for your reply...
You are still working, if you are leaving the job you are entitled to get the labour benifits. But if you are in limited contract and you are leaving the job then you must compensate employer
dear sir,i was finish 7 years.i want to know my gratuity calculation base on basic salary or gloss salary.thx
you are entitled 30 days salary for each year of employment over 5 years, up to a maximum of 2 years salary on basic Salary.
You can request employer to calculate the benifit on last drawn salary
I have come here on an International Contract and I am being move back after three year in Dubai but still employed by the company. Can I still claim for Gratuity ?
If you are leaving the job you can claim your benifits
hi Sir,house maids are entitled for gratuity if they work for 5yrs in 1 family.i need your reply.thanks
sir, my contract is unlimited im joining to my company august 14 2008 then i file my 1 month notice july 21,2011 to august 21,2011then my shop manger he call me august 16,2011 he told me to stop to my work by the general manager instruction then i said my last day is on 21 of august 2011,what is the calculation of my gratuity...
House maids are entitled for the benifits. If you are facing any problem contact labour department
I am a private nurse for 10 years and decided not to renew. what benifits i can claim to my employer or sponsor? how it be calculated. can i get my previous live pay. pls advised me.thank.
Dear,
Please note you had completed 10 years and you are entitled to get Gratuity.
If you are in limited contract you are entitled to get 21 days salary for every year of employment less than 5 years, and 30 days salary for each year of employment over 5 years, up to a maximum of 2 years salary.
Limited contract holders shorter than 1 year-No gratuity
If more than that then the amount is according to the following:
Employed for less than 1 year - no gratuity
Unlimited contract:
Employed between 1-3 years - 7 days for each year of employment (1/3 of the limited contract amount)
Employed between 3-5 years - 14 days for each year of employment (2/3 of the limited contract amount)
Employed longer than 5 years - 21 days for each year up to 5 years, and 30 days for each year after 5 years (same as for limited contract holders). Maximum limit of 2 years worth of salary.
Just wondering hope someone can answer I know its quite out of the topic. I want to bring my wife here in UAE through husband visa. wherein my understanding the gross salary requirement is 4000AED. Only thing I started working in UAE with 3000AED salary and now receiving 5000AED for some salary increase. The problem is 3000AED is the salary reflected in my ministry labor contract signed 2 years back. Is there any way to renew or revise my ministry labor contract so that I will be qualified for the 4000AED salary requirement? thanks in advance.
Hi
I have been working with my current organisation for 5 years now on unlimited contract, i am lookng to resign shortly for a better opportunity, what will be my gratuity allowance is it 21 days or 7 days? Also will I require NOC?
Hi anybody give me advised regarding with my current situation, first of all i been working as limited contract. My Labor Card expired October 15, 2011, My Residence expired November 16, 2011 and still i'm currently working in the same company. Just now (December 4, 2011) i decided not to renew my contract anymore since till this date (December 4,2011) seems they didn't take action on my Visa. When i inform the management that i will not continue to work they told me that my visa was already process. (Please note that i didn't sign a contract yet and i didn't go for medical yet.)
My Question is:
1. Can my Visa will automatically renew without signing of new contract and medical?
2. Is my decision was legal as per labor law?
3. Do I need to give resignation letter to the management and do i need to oblique 30 days notice period?
4. Can Management do legal action against me?
Please advised me...
If you are not prepared to continue your present work you must give your resignation letter to management, otherwise they will start processing your visa. Now your visa expired do it as early as possible
I have a question regarding to all HOUSEMAID....are they included in getting the Gratuity from their employer? Like me i've been working 14yrs. in 1 family....Do i have the right to ask my gratuity from them? thank.....for ur immediate response..
You have all the rights to get the benifits. In case you are facing any problem contact labour department
hi,
I was worked 3 year and 2 months in a software company on a limited contract.once the contract period over i left from there and now working in another company from last 10 months. when leaving the previous company, i didn't got any gratuity and leave salary. They said that they will give the money after few months.Even after 10 months i did'nt got the money yet. can i complaint to dubai ministry of labor ? is there any problem while complaining because i already left the company 10 months before ? please assist me .
Hi, I need an urgent advise and a official law that can clearly says my query. My case is this.
I am finishing my visa on january 19,2012. and I am planning to go home to my home country but renew my visa with same company. I was asking for the gratuity as i am finishing a 3 year-visa. but my employer says that gratuity will not be given coz i am renewing my visa with them is this true???? please advise me accordingly ASAP please. my email: brgtnsals@yahoo.com\Thanks
Hi,ive been working with construction company here in abu dhabi, they terminated me for no reasons,i receive termination letter on sept 2011 as notice and my last day of work is on Oct 03,2011,but due to loaded and busy at work, i spent my time until the last day of my notice period so i wont be able to find a new job and i found out that im pregnant the time of termination then i please the management to give a chance to extend my service until giving birth coz it will be difficult for me to find a new job in my condition,theres no company will hire me if they come to know that im pregnant but inspite of asking their consideration they just ignore my request. i just want to know what will be my claims and right from my company in this case and how much will be my gratuity. thanks and best regards,Ms.Cha..
i've in my company about 2years and 2months under unlimited contract and i pass my resignation letter ( 30 day notice period ) but my employer stop me for working on the day that i pass my resignation...Am i entitled for gratuity?do i have to pay my employer because his asking to pay him 6thou dirhams for his expenses for hiring me in my country..
Hi,
My father-in-law passed away while he was in service. How do we claim his gratuity. He has his wife and two children. Can they claim the gratuity.
Sir,
I am working in a private sector from last 6 monts, now they are pushing to sign a 2 year company contract(not labour contract, contract is they want 3 months salary from me, if i am resigning between 2 years. please tell me this contract is valuable or not.
SIR / MADAM,
I JUST HAVE SOME QUESTION;
I WORK IN ONE SHOP FOR MORE THAN TWO YEARS WITHOUT ANY VACATION BECAUSE THEY DID NOT ALLOW ME NOW ALL OUR SHOP THEY CLOSED AND THEY PAY ALL THE EMPLOYEE ON THEIR GRATUITY, EXCEPT ME..,LAST APRIL 2012 THEY TRANSFER ME ON THE OTHER SHOP IN SAME COMPANY BUT THEY DID NOT PAY MY GRATUITY.NOW ON SEPTEMBER 11,2012 MY CONTRACT IS ALREADY FINISH. I JUST WANT TO KNOW IF THEY NEED TO PAY ME FOR MY GRATUITY AND FOR MY END OF CONTACT BECAUSE THEY TOLD ME THEY WILL NOT PAY ME BECAUSE ITS JUST A CARRY OVER BY MY SHOP IM WORKING NOW AND THEY TOLD ME I CAN GET ALL THOSE IF I WILL RESIGN....BECAUSE BY OCTOBER I WILL RENEW MY CONTRACT WITH THEM.. MY SHOP IVE BEEN WORKING BEFORE AND THE SHOP I'VE BEEN WORKING NOW IS SAME COMPANY... PLZ JUST SEND ME EMAIL (deangangel@yahoo.com)
thank you in advance.
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