Q: I have completed my first two-year limited contract and renewed for another two years. If I resign after completing a year of the second contract, after a total of three years of service, how would my gratuity be calculated?

Q: Dear Sir, I am working in a Hospital as a Registered Nurse from 11.05.2014. My first two labour contracts were unlimited labour contract and after finishing the second contract term, the hospital management renewed the labour contract with a new limited labour contract. I have resigned from the hospital now and I am in the 2 months notice period as per contract. I like to know about the calculation of my gratuity amount. As per the hospital management, they calculate the gratuity as 14 days x 4 years (for the completed unlimited contract period). Whereas I have completed total 5 years and 4 months period in total with the hospital (4 years with unlimited contract and 1 year and 2 months with limited contract). Kindly confirm this gratuity calculation is correct as per the UAE labour law. Also, the hospital management asked me to pay a two-months full salary as a penalty since I am resigning without completing the limited contract. I am awaiting your valued reply.

Q: How is the end of service gratuity calculated under a limited contract where the contract expires after two years?

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?

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.

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.

This Decree sets the rules and conditions for the termination of fixed-term (limited) or unlimited (not term-bound) employment contract between employer and worker in the United Arab Emirates.

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).