Questions & Answers
Questions & Answers
9 available 9 • View allEnd of service gratuity calculation
34
Q: Hi there,
If you could please let me know how is End of Service gratuity calculated for resigning employee on unlimited employment contract in Dubai?

Jan 31, 2017
13386
Employer's right to deduct debts of employees from their end of service gratuity
3
Q: I was working in a company in the UAE for five years. In the UAE they do not have a retirement plan for expats, only End of Service Allowance (EOSA). My employment contract is an open contract. No contract duration.
I had taken a loan from the company. I borrowed the funds to support my children education. I had been approved for the loan given I have a salary.
The company decided to terminate the employment of about 400 employees. I did not request to be terminated. No package was given at all for compensation except EOSA plus ticket and freight cost.
I recently received the company Draft Final Settlement document whereas the EOSA amount that I was hoping to use to survive and provide food and shelter for my family was taken away completely and applied towards paying the loan.
They fired me, I did not ask to be fired. They have broken their side of the contract.
What legal recourse do I have for not accepting the company literally taking away my EOSA and leaving me bone dry?

Sep 22, 2017
5957
The legal basis of calculating the end of service gratuity
2
Q: Hi,
I would like to know about the end of term gratuity here in Dubai, It says the maximum remuneration for the end of service gratuity should not exceed 2 years' pay.
Is that 2 years' pay based on the gross salary or basic salary?
Regards

Oct 4, 2018
2687
HR policies with regards to the end of service gratuity
0
Q: Hi,
I need advice on HR related matter:
I joined in Nov 2014. That time the HR manual applicable says that the gratuity is applicable post completion of 1 year of service. Since the same is more beneficial as compared to labour law, the same is applicable.
Now, the company changed the HR manual in January 2018, wherein they mentioned that the gratuity is applicable only for employees completing 5 years. The issue is that they applied the new HR policy retrospectively and not prospectively.
I need advice on whether the HR Policy can be applied retrospectively or not. Is it legally binding?
Can they apply the new policy (with respect to gratuity) on employees who joined when the older HR manual is in force?
Should the older gratuity rule be applicable to all the employees who joined before implementing the new HR Manual?
If you need any additional info, would be happy to share. I would require written advice from your end. Please advise on the charges accordingly.

Mar 19, 2019
829
Retrospective change in the HR policy regarding gratuity
2
Q: Hi,
I need advice on an HR related matter:
1. I joined the company on 19th Nov. 2014. That time, the company’s Internal HR manual says the gratuity is applicable to all employees post completion of 1 year of service.
2. In January 2018, the company changed the HR Manual. The point regarding gratuity has been changed from 1-year applicability to 5 years.
3. The issue is that they applied the new HR policy retrospectively and not prospectively. They are applying the new gratuity provisions on all employees even if they joined before the implementation of the new HR Policy.
4. Query:
a. Strictly on Legal terms, can any change in HR policy be applied retrospectively?
b. Am I right in asking that the benefits to be applied should be based on older HR Policy (which is applicable at the time of my joining i.e., Nov 2014), rather than the New HR Policy which is implemented in Jan 2018?
I would also like to have the written/official response from you on this on letterhead.
Please advise on charges.

Mar 18, 2019
1565
The basis of paying the EOSB in arbitrary termination
1
Q: Should the severance pay for arbitrary termination and notice period compensation be paid on gross or contract salary?
My employer had refused to put any salary raise I got in the contract but put it as a fixed bonus in payslips.
I have a salary certificate, payslips and bank statements to prove my remuneration. This is in case of DMCC free zone, UAE.

Nov 4, 2019
444
تطبيق قرار إداري بشأن مكافأة نهاية الخدمة بأثر رجعي
2
س: تحية عطرة،
أنا إماراتي عملت سابقًا موظفًا في الحكومة الاتحادية واستقلت منها واستلمت مبلغا قدره (ثمانون ألف درهم) باعتباره مكافأة نهاية خدمتي.
بعد أربع سنوات، رجعت إلى وظيفة لدى حكومة أبو ظبي، وقدمت طلبًا لضم خدمتي السابقة إلى خدمتي الحالية، وتمت الموافقة على طلب الضم على أن أسدد مبلغ الثمانين ألف درهم قيمة المكافأة الذي سبق أن استلمتها.
مضت السنون (19 سنة) ولم أسدد المبلغ . وعندما أردت أخيرًا أن أسدد قيمة المكافأة، طلبوا مني سداد ما يقارب مبلغ المليون درهم، بذريعة أنه حدثت إعادة تقييم جديدة لطريقة حساب المعاش التقاعدي.
السؤال:
أليس القرار الذي صدر سابقًا بقبول ضم خدمتي وسداد مبلغ (الثمانين ألف درهم) هو الواجب التطبيق، كونه أصبح حقًا مكتسبًا لي لا ينبغي تعديله أو إلغاؤه، وعلى أساس مبدأ عدم رجعية القرار الإداري، وحفاظًا على استقرار الأوضاع للأشخاص وعدم تجاوز السلطات على بعضها البعض، وغير ذلك من الأسباب المتعلقة بأحكام وقواعد تطبيق القرارات الإدارية؟
ألتمس من أساتذتي الأفاضل الرد القانوني السليم مع جزيل شكري وتقديري!

Dec 3, 2020
306
How to determine the start date of work to calculate the gratuity
14
Q: Hi,
My labour contract was made in Jan 2018 and the visa was stamped in March 2018. My last working day at the office is in Feb 2021.
My employer says that the end of service will be calculated from the day visa was stamped, if that is true then please share the labour law article specifying that or something shows that what he says is false then what shall I do to claim the right figure for my gratuity?

Feb 4, 2021
2616
What is included in the computation of the end of service gratuity?
1
Q: HI.
I have recently resigned from my organization. What I want to know is that in the end of service gratuity calculation, the paid leave amount consists of basic pay only.
Shouldn't the HRA be part of paid leave amount as well in addition to basic pay?

Aug 9, 2021
186
Legal blog
3 available 3 • View allIs a Barter Gratuity Possible in the UAE? 8
Issue: An employee resigned from the job after working for 5 years, and signs a letter addressed to the employer that he wants his gratuity to be paid only after his customer pays the employer. Therefore, has the employer defaulted for End of Service (EOS) payment under the UAE Labour Law?
Oct 5, 2017
9106
A Brief on the End of Service Gratuity Laws in the UAE 28
The UAE has mainly the 3 sectors which have their employment laws, like the laws of companies under MOHRE (governed by Federal Law no. (8) of 1980 Labour Law, Domestic works govern under Federal Law no. (10) of 2017 On Domestic Workers and Free Zone companies governed by their specific employment laws.
Feb 6, 2020
23796
An Overview of the New UAE Labor Law and Recent Amendments of 2024 233
The UAE has adopted a major reform in its legislative system that brought about 40 new laws and amendments to the company law, criminal law, personal status, among others. The amendments aim to develop the legislative structure in various sectors, the labor law being one of these, was the most recent. We try in this article to shed light on the changes introduced with the new labor law and their significance on both, the employer and employee.
Sep 10, 2024
92498
Laws & Regulations
2 available 2 • View allFederal Law No. (8) of 1980 Concerning the Regulation of Labor Relations 53
The provisions of this Law, known as "UAE Labour Law", govern the relationship between employers and employees and other labour matters in the United Arab Emirates. There are special labour related regulations applicable in some of the free zones in the UAE.
Apr 20, 1980
103757
Federal Decree-Law No. (33) of 2021 On the Regulation of Labor Relations 34
The provisions of this Decree-Law, known as "New UAE Labor Law", govern labour relations in the private sector of the United Arab Emirates. The New Labor Law repeals the previous UAE Labor Law (Federal Law No. (8) of 1980).
Sep 20, 2021
26946

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