Calculation of the EOSB and notice period in case of termination

Question

Q: I would like to understand what the right calculation is as per the UAE Labour Law for the notice period, arbitrary dismissal, gratuity and commission if it is counted… A: For gratuity, if the service period is less than 5 years, then the employer has to pay a basic salary of 21 days each year…

Abdul Wahied Mohammad Sharief · Accepted Answer

Dear Client,

Thanks for your question.

1) The notice period shall be for 1 month by either party in case of an unlimited contract

The employer shall pay a basic salary of 90 days to the employee, in case of early termination of contract and in case the employee terminates the contract early, he/she has to pay 45 days salary to the employer.

2) For arbitrary dismissal, the employee has the right to claim 3 months salary but has to be decided by the judicial body.

3) For gratuity, if the service period is less than 5 years, then the employer has to pay a basic salary of 21 days each year. For more than 5 years of service, it should be 30 days salary.

4) The commission can be claimed only in case you have a written agreement with the company for the structure of the commission.

Thanks

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