Can you advise me about possible compensation from my employer when I leave. I joined the company in June 2013 and my last working day will be this month. My total salary is currently Dh16,500 per month with Dh10,500 as my basic salary. Appromixately what gratuity should I expect from my employer? YA, Sharjah
The rules regarding payment of the end of service benefit (EOSB) are set out in the UAE Labour Law, but can be a little confusing. For someone who has been with an employer for more than 12 months but less than five years, the EOSB is 21 days’ pay for each year of service, based upon basic salary. If a person resigns with less than five years’ service the amount payable reduces. If the period of service is less than three years, the amount due reduces by two- thirds, so that just seven days per year of service is payable, per Article 137 of the law.
This is the case if a person is on an unlimited contract; if they are on a limited contract they forfeit all rights to a gratuity payment if they resign within less than five years’ service. In this particular case, YA has been with the company for two years and two weeks and based on a basic salary of Dh10,500, the amount of gratuity payable is based on 14.26 days of service – which is approximately Dh4,923.
Keren Bobker is an independent financial adviser with Holborn Assets in Dubai, with more than 20 years’ experience. Contact her at keren@holbornassets.com. Follow her on Twitter at @FinancialUAE.
The advice provided in our columns does not constitute legal advice and is provided for information only. Readers are encouraged to seek appropriate independent legal advice.
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