Questions & Answers
Calculation of gratuity when transferring an employee on secondment to the UAE
If we transfer an employee on secondment to the UAE from another country for a period of 3 years, do we have to pay gratuity as per UAE law?
As per his contract in the country where he is transferred from, the company is liable to pay provident funds in the country. After spending 3 years, he will be transferred back.
Is the company liable to pay gratuity?
Kindly note that he is one of the executive cadre, not a workman.
Hello,
Please note that if there is a labor contract, then the employee is liable to be paid for the end of service benefit, even if he is temporarily posted in a different country.
However, since the employee is also receiving provident funds from the base country, so in that case, there is no law for the particular situation as such.
The employer and employee in a separate agreement or MOU can mention that since the employer is paying the provident funds in the base country, so the employee will not take the benefit of double gratuity and the MOU should be witnessed and signed better by an advocate office.
For further assistance, kindly contact us via phone or email.
Thanks!
