Employees
working in firms operating under the jurisdiction of the Jebel Ali Free Zone
Authority (Jafza) are entitled to mandatory termination benefits as per the
laws of the free zone. If the dismissal is deemed to be arbitrary, the employee
shall be entitled to compensation in addition to severance payments due that
are governed by the employment contracts in Jafza.
Compensation
you are entitled to: According to Rule 11.8.7 of Jafza employment law, the
amount of compensation that will be payable to a terminated employee shall be
decided by the deemed authority here and will not exceed three times the total
of the basic monthly wage and allowances as specified in the employment
agreement.
Gratuity
payment at termination: An employee whose service exceeds one year shall be
entitled to a gratuity payment on termination of service at the rate of 21
calendar days pay of the last month’s basic salary (or more if the employment
agreement so specifies) for each year of service for the first 5 years.
For
each additional year, the amount increases to 30 calendar days of the last
month’s basic salary, provided that the maximum payment does not exceed two
years’ basic salary.
After
the first year, payment will be pro-rata for the period served. The regulation
clarifies that gratuity shall be calculated at the basic pay rate as defined in
the employment agreement.
Airfare
to home country: When an employee’s services are terminated, airfare to the
international airport nearest to the employee's home should be offered. This is
applicable at the expiry of the employment agreement or when the employment
agreement is terminated by the client prior to its expiry.
If
an employee’s annual contract is automatically renewed in accordance with the
employment agreement, the employee is entitled to airfare either in the event
of submitting a resignation or on dismissal, whenever this occurs.
However,
if the employee has already availed the ticket for the completed contract
period, s/he will not be entitled to an additional airfare for the same period.
A
free service certificate :If the terminated employee wishes for some kind of
record, he can request a service certificate, which is to be provided free of
charge. The certificate will have details of the employee such as period of
service, work performed while employed, final rate of pay and bonus, if any,
and a character reference. These things can come in handy while applying for a
new job elsewhere.
