Can UAE gratuity payment calculation include commission?

Keren Bobker advises a Dubai worker who received an average commission of Dh15,000 a month.

Keren Bobker advises on the end of service gratuity payment. istockphoto

I was employed by a well-known company in Dubai for nine years and resigned in March. My visa was finally cancelled last month and my gratuity paid two weeks ago. My gratuity was paid based on my basic salary and I signed to accept it. Now I have realised it was calculated incorrectly. I was also receiving an average commission of Dh15,000 every month. The company did not factor this into the gratuity payment, and I have heard that commissions can also form part of the calculation. Am I correct, and if so can I still claim the gratuity on my commission. Do I need to hire a lawyer? SE, Sharjah

The end of service gratuity is based on basic salary without allowances, but if an employee can demonstrate that they have received a commission payment every month, then this figure should be taken into consideration when calculating the final payment. Any correspondence to this effect will support a case, as will the salary amounts credited to the employee’s bank account each month. When I have spoken to the ministry on this subject it has advised that if commission or bonuses are a regular feature of someone’s pay then they should be treated as salary, with a degree of averaging over the past few months if the amounts vary. This only applies to amounts paid monthly, not to annual bonus payments. It sounds as if SE should have received a payment based on a higher figure, but the issue is complicated by the fact he signed an acceptance of the amount paid. This may reduce the strength of his claim but he should still contact the Ministry of Labour – helpline number 800 665 – to see if it is willing to assist with a claim for the payment of an additional amount of money. A lawyer should not be necessary, and bear in mind that the fee payable to hire someone would probably negate any additional payment. The decision of the ministry should be sufficient to make an employer pay the right amount that is due.

Keren Bobker is an independent financial adviser with Holborn Assets in Dubai with more than 20 years’ experience. Contact her at [e-mail]. Follow her on Twitter at @FinancialUAE

The advice provided in our columns does not constitute legal advice and is provided for information only