جميع المدن, الإمارات العربية المتحدة

Gratuity calculation in case of work for different branches of the same company

In regards to the UAE Labor Law and the application of End of Service Gratuity, if an individual was employed by another branch of a company before transferring to an FZE branch UAE based employment contract, would that be considered continuous employment?

For example, the initial employment was in another Middle East location(s) within a European registered branch; however, all administration (HR / Management oversight) was conducted by FZE entity, after which, in acceptance of promotion, a relocation to the UAE and an FZE contract was entered.

متميز

أحمد النجار

دار البلاغ للمحاماة والاستشارات القانونية

دردشة

توظيف

اجتماع

1 Jun 2017, 11:18

The End of Service Gratuity as per the UAE Labor Law is for the period the employee has been working for the company in the UAE.

Unless otherwise agreed in writing between the Employee and the Employer, or, if the Employee has been denied his End of Service pay out of the Country and the relation of Employment has not been terminated and it was, in fact, a continuation of relation.

It is the duty of the Employee to provide evidence for this claim in case of a conflict with his Employer for such calculation if the subject conflict goes to court.

1 Jun 2017, 11:33

Thank you for the response.

The reason for the query was due to the response to the FAQ within the UAE Labor Law which answered the question:

"Where an employee has worked for an employer in two or more countries, will he be entitled to gratuity?", which indicated there was a possibility this could be considered.

1 Jun 2017, 11:39

Of course, there is a possibility.

However, you have to understand that in some foreign countries, where a national is entitled to a pension plan that is payable by his company to a fund that is regulated and run by the foreign government itself, companies tend to put clauses to regulate such cases.

In fact, I have seen so many contracts mentioning it very clear that the employee who gets relocated from one country to the other will be paid both benefits, his home country's pension contributions plus the end of service in the UAE.

Such a contract clearly mentions also that the duration of employment is continuing and was never interrupted. These clauses are supposed to protect the employee and usually are put based on the employee request.

I am not sure - from your question - what is your case. However, if you wish we can meet and I can have a look at all your supporting documents and advise you further.

Regards,

Ahmed Elnaggar

aelnaggar@lkmbgroup.com

1 Jun 2017, 11:46

Thanks again, I may take you up on the offer at a later stage once I understand how the company perceives the situation.

1 Jun 2017, 11:56

Sure. Anytime.

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