Applicability of gratuity before completing 5 years of service

Question

Q: I submitted my resignation. They told me I have to pay 45 days salary and there is no gratuity. I have already completed 2 years… A: The UAE Labour Law provides for 45 days of salary as compensation. This is applicable only if the contract is limited. You have an unlimited contract…

Hari Wadhwana · Accepted Answer

Dear Sir/ Madam,

Thank you for reaching out to me on this.

Since your query is on two fold i.e. gratuity and payment of compensation to the employer, please find my response in two-fold.

1- You are entitled to gratuity and the same is enshrined under Article 132 and Article 137 of the UAE Labour Law.

I would further advise that you visit https://www.mohre.gov.ae/en/end-of-service-calculator.aspx.

This is an EOSB calculator provided by the MOHRE, this will enable you to quantify your claim and you can show this to your employer for their reference.

2- You are not obliged to pay 45 days of salary to the employer as compensation.

The UAE Labour Law provides for 45 days of salary as compensation, however, this is applicable only if the contract is limited. But you have an unlimited contract, hence this is not applicable for you.

I trust you will find the above helpful.

Regards,

Hari Wadhwana

052-9495731

Questions & Answers