Retrospective change in the HR policy regarding gratuity

Kindly advise me on the charges for issuance of such letter on your letterhead.

Also, I understand that the labour law allows for the gratuity only after the completion of 5 years under a limited contract type.

The company has given us a limited contract. They have mentioned the 5-year provision in the New HR Policy effective 1 Jan 2018 and applying it to all the employees who even joined when the older HR policy was in force.

But, my basic query is on the fact that since the earlier HR Policy allowed the gratuity payout for employment of more than 1 year, they cannot apply the new HR Policy retrospectively for all employees joining before the date of the change in HR Policy.

Hope I could explain the scenario properly to you.

Dear Sir/ Madam,

It is not true that the UAE Labour Law allows for EOSB only after completion of 5 years.

It is only if an employee abandons (resigns) from the job before completing his contract period (3-year contract but terminating in 2nd year itself) and if the employee has worked in the organisation for less than 5 years, then the employee loses rights.

With regard to the retrospective rule, the court will grant relief on the basis of whats advantageous to the employees and in line with the law.

Courts will always give precedence of UAE Labour Law over a company HR policy.

Hence, for example, an employee is having a limited contract for 3 years and complete his three years and resigns, the company will be obliged to provide him with gratuity irrespective of the HR policy.

For reasons relating to confidentiality, I cannot discuss the charges for a legal opinion on company letterhead but we can discuss the same over email.

Regards,

Hari Wadhwana