Q: Hi there, If you could please let me know how is End of Service gratuity calculated for resigning employee on unlimited employment contract in Dubai?

Q: I was working in a company in the UAE for five years. In the UAE they do not have a retirement plan for expats, only End of Service Allowance (EOSA). My employment contract is an open contract. No contract duration. I had taken a loan from the company. I borrowed the funds to support my children education. I had been approved for the loan given I have a salary. The company decided to terminate the employment of about 400 employees. I did not request to be terminated. No package was given at all for compensation except EOSA plus ticket and freight cost. I recently received the company Draft Final Settlement document whereas the EOSA amount that I was hoping to use to survive and provide food and shelter for my family was taken away completely and applied towards paying the loan. They fired me, I did not ask to be fired. They have broken their side of the contract. What legal recourse do I have for not accepting the company literally taking away my EOSA and leaving me bone dry?

Q: Pension Contributions Q1. Can GCC nationals contribute towards Pension & Social Security fund maintained in UAE? If yes, what are the procedures? Please explain. Q2. For a GCC national working in the UAE, should the employer deduct his/her salary and remit the same to his/her pension fund in their respective country? If so please explain the procedures. Q3. If a GCC national obtains Emirati nationality, what will be her pension contributions? What happens to her contributions made previously to her GCC pension fund? Q4. I read on your website, that an employee under a limited contract has to provide a notice period to his/her employee under probation. Could you please clarify, which article in the labour law states an employee should compensate during probation? Q5. Accrued leave salary to be settled with the end of service benefits, is it calculated on the basic wage/remuneration or wage/remuneration?

Q: As a GCC national (Saudi), am I eligible to receive an end of service from my employer (private company)? Or am I not eligible due to the GCC pension scheme I am enrolled in? Thanks!

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.

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).