Questions & Answers
Labour rights of the employee after finishing limited term contract
I have been working on a limited contract with a company for 4 years. I kept on renewing the same contract every 2 years (2016 to 2018 and 2018 to 2020).
Two years ago, in Dec 2018, I renewed the same contract. This year, in Dec 2020 (my visa expired on 28 Dec 2020) so I completed my visa and I’m not renewing my visa.
I resigned from my job and I am serving my notice period for one month. Will I get my gratuity?
The UAE Labor Law provides for a limited list of reasons which will determine the employee to lose his end of service benefits:
1. Gross misconduct, as mentioned in Article 120 in the UAE Labor Law: the employee assumes a false nationality or submits forged documents; causes a severe material loss to the employer; assault the employer of the other coworkers... etc.
2. Also, if the employee resigns or is dismissed for reasons specified in Article 120 to avoid the consequences of applying the same Article 120.
3. Not serving the notice period for indefinite term contracts and before completing five years of continuous service for definite term contracts.
There are also some other situations that may affect the end of service gratuity, such as:
1. If the employee has any loan from his employer and such amounts have not been returned, then the employer has the right to deduct from the end of service gratuity the equivalent of the loan.
2. The employee might lose the end of service gratuity if he signs any letter or paper where it is stated that the employee waives his right fully or partially with regards to the gratuity.
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