Q: I have worked for my employer for 4 years on an unlimited contract. Employer informed me that they will not renew my visa and will end the working relationship. What is the amount the employer owes me… A: Salary of one month of the notice period. End of Service Gratuity. Outstanding annual leave…

Dubai, UAE

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Calculation of the End of Service Gratuity upon termination

I am looking for advice on how to best proceed with receiving the amount of gratuity promised in my contract. I have worked for my employer for 4 years on an unlimited contract.

One month before my visa renewal, the employer informed me that they will not renew my visa and will end the working relationship. My contract states that my basic salary is AED 13,000, with no subdivisions.

Now, the employer claims that this was a mistake and they meant to write AED 6,000 as basic salary and allocate the rest for travel, living etc. They are only willing to pay the gratuity based on this amount.

Please advise, what is the amount the employer owes me as gratuity and how to proceed?

Hassan Al Marzooqi

Dr. Hassan Al Marzooqi Advocates & Legal Consultants

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13 May 2018, 08:50

Dear Questioner,

With reference to your question above, I would like to draw your attention to the following EOS:

• Salary of one month of the notice period (according to Article No. 119)

• End of Service Gratuity (according to Article No. 132)

• Outstanding annual leave.

• Ticket.

• Compensation - Salary of 3 months (according to Article No. 122, and 123).

All of the above should be calculated on your salary that is mentioned in your labour contract.

Should you have any further query(s), please do not hesitate to contact us.

M : +971 56 325 1472

eman@dr-hklawyers.ae

17 May 2018, 08:18

Could a lawyer please explain how is the end of service gratuity calculated?

I have read from every place I can find that if the employer terminates the contract, it is calculated as 21 days for each year since I have worked for 4 years in the company.

Now, after having a meeting at the MOHRE with a legal adviser, they said it is 14 days, if I have worked there less than 5 years, no matter who terminates.

Is this true? What does the law actually say?

28 May 2018, 05:30

Hi Questioner,

According to the UAE Law, it is calculated as 21 days for each year, if you have worked less than 5 years.

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