If the employee is terminated today, what is his eligibility for final settlement calculation?

Dear Inquirer,

If the employee is terminated after working for 6 months, the final settlement will typically include:

- End of Service Benefits (EOSB): Calculated based on the employee’s last wage. For less than one year of service, the EOSB is usually calculated as 21 days per year.

- Salary for the last month worked and any unused leave days.

- Any other outstanding dues based on the employment contract.

For accurate and detailed calculations specific to your case, we recommend booking a consultation with "Future Vision for Advocacy and Legal Consultancy" to ensure full compliance with UAE labor laws.

We are happy at Future Vision Law Advocates and Legal Consultancy to assist you and provide the best legal services that meet your needs.

To contact us, you can call or WhatsApp us.

For employees with less than one year of service, there is no statutory entitlement to end-of-service gratuity.

Gratuity accrues after completing one year of continuous service. The employee is entitled to compensation for any unused annual leave accrued during their 6 months of employment.

The employee is eligible to receive notice period pay according to his contract. If you need further clarification you may ask.

Dear K,

Under the latest updates to the UAE Labor Law, if an employee is terminated after working for 6 months, their eligibility for final settlement includes the following components:

Salary Compensation: The employee is entitled to receive their last month of salary if they have not been paid for that period.

Gratuity Pay: An employee who has worked for less than one year is not entitled to end-of-service gratuity pay.

Other Deductions: Any outstanding debts or advances that the employee owes to the employer can be deducted from the final settlement.

In summary, the employee will receive their due salary for the final month of employment, but will not be entitled to gratuity since their service was less than one year.

It's advisable for both parties to ensure all documentation is in order during the settlement process.

Hello,

According to the UAE Labor Law, for an employee to be eligible for End of Service Gratuity (ESG), they need to have completed at least one year of continuous service with their employer.

So, if an employee worked for only 6 months and is terminated, they are not entitled to ESG. However, they will receive salary, annual leave, and notice period payment (if applicable).

Dear Sir/Madam,

Thank you for your inquiry regarding the final settlement calculation for an employee who has completed six months of service and is being terminated. Based on UAE labor law, the following points provide clarity on the employee's entitlements:

1. End of Service Gratuity:

- Under Federal Decree-Law No. 33 of 2021, employees are entitled to gratuity only if they have completed at least one year of continuous service.

Since the employee in question has worked for six months, they are not eligible for end-of-service gratuity.

2. Notice Period Pay:

- If the termination occurs after the probation period, the employer must provide a notice period of 30 days (or as specified in the employment contract). The employee is entitled to receive their full salary during this notice period.

- If the employer terminates the contract without providing notice, they must compensate the employee with payment equivalent to the notice period.

3. Unpaid Salary:

- The employee is entitled to any unpaid salary for days worked up to their last working day.

4. Unused Annual Leave:

- Employees accrue annual leave at a rate of two days per month if they have completed more than six months but less than one year of service. Any unused accrued leave must be compensated in the final settlement.

5. Other Deductions or Payments:

- Any pending deductions (e.g., loans, advances) or additional payments (e.g., overtime, bonuses) must be included in the final settlement as per the employment contract.

6. Payment Timeline:

- As per UAE labor law, all end-of-service benefits and dues must be paid within 14 days from the employee’s last working day.

If you require further assistance or clarification regarding specific calculations or legal compliance, I recommend consulting a legal professional or HR specialist to ensure all obligations are met under UAE labor laws.

Yours sincerely,

Thank you for reaching out.

If an employee is terminated after six months of service in the UAE, their final settlement typically includes:

Salary & Benefits – Payment of any outstanding salary up to the last working day.

Unused Leave – Compensation for any accrued but unused annual leave.

End of Service Gratuity – Since the service is less than a year, gratuity entitlement does not apply.

Notice Period – If the termination is without notice, compensation for the notice period is as per the contract.

Other Deductions/Additions – Any applicable deductions (loans, advances, etc.) or additional entitlements.

However, the exact settlement calculation depends on the employment contract terms and UAE Labour Law provisions.

To ensure compliance and avoid disputes, I recommend reviewing the contract and termination details carefully.

Feel free to reach out to me via WhatsApp or phone to discuss your case in detail and ensure a smooth settlement process.

Best regards,

Suhail Rana