Monday, March 30, 2009

UAE Labour Law - Gratuity Calculation

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.