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: Background: I was employed by XXXXXXXXX (a company in Dubai Internet City Free Zone) from 09-Feb-2014 to 31-July-2019. However, in July 2019, I was informed that XXXXXXX is moving to a new Free Zone (DMCC). Considering that my employment would continue in XXXXXXX DMCC, I accepted the above and changed my visa to XXXXXXX DMCC and started working there from 01-Aug-2019 until I was terminated on 05th September 2019. I was informed that I was being terminated with immediate effect due to “Unsuccessful probation”. I would like to know if I am eligible for the following claims: 1. Notice Period Salary: After working for the same employer for more than 5.5 years, I was terminated with immediate effect. I was not given any notice period or any compensation for it thereof citing the reason I am on probation. 2. Arbitrary Dismissal: I was terminated due to the reason of “Unsuccessful Probation” whereas I have worked with the same employer for more than 5.5 years.

Q: 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.

Q: My company is moving from the mainland to a free zone and will cancel my labour contract under mainland company and provide me with a contract in the free zone. However, they are refusing to pay my gratuity for the 5 years in the mainland company and promising me to pay at the end of my service under FZ including the service with the FZ as well. Is it possible for the company to cancel my current labour contract without paying the EOS benefits and will I face any issues later when I intend to leave the FZ company?

Q: I am under DMCC. My visa has already expired on Nov., 8. My company told me that they will transfer me to an LLC (same owner). I emailed them reminding them that aside from my gratuity, I also have a pending ticket allowance. They replied to me and sent a letter that from DMCC, I will be transferred to an LLC due to the expiry date. My employment will be continued with no changes to my end of service entitlement and annual leave. Is this letter valid? Will this letter be enough proof and assurance that at the end of my service I will get the dues from my last company (DMCC)?

Q: I was working in France for a company and got transferred to the UAE with the same company. As part of the transfer process, I resigned from my French position and signed a new local contract for the new position. My employer issued a letter mentioning the resignation and the new position benefits as well as clearly mentioning that my employment with the company is continuous (ie. my start date with the company remains the same as my start date in France). I have now resigned from my UAE position and am in the middle of my notice period. I have discussed with my account department the details of the End of Service Gratuity and found that they do not consider the French start date but the UAE start date in their calculation. The letter as well as multiple company internal procedures clearly state that when an internal transfer happens, the start date with the Group remains. As I was forced to resign from my French contract, I have not taken any compensation for the years worked. Please advise!

Q: Dear all, I was hired as GM for a company in Dubaï which is a subsidiary of a European Holding. For 3 months, I did not receive my salary. The local company (LLC) is about to close with no more assets & no local funds. We used to receive funds from this holding to pay all local expenses. My company doesn't want to terminate my contract even they invoke that I am not working. Indeed, they removed from me the business car, the professional phone number, and the professional email without notice. The local sponsor and the director of the holding are the only ones mentioned as managers & shareholders on the trade license. Any chance to get my salaries + gratuities? Should I send a letter of resignation then and cancel my visa if the local sponsor accepts? What are the legal consequences for both sides? According to my employment contract, I should have 3 months' notice period for termination. In case of an "act of negligence", they can terminate my contract immediately (no notice period). Waiting for your advice, Thanks!

Q: Hi I am currently working in an LLC company since 2019. Recently, the company moved to a free zone with a different name and asked me to sign a letter of agreement to transfer my contract to the new company. This means that my end of service will be carried forward and paid along with whatever amount in the free zone company. Is this possible legally? Please, I need your advice urgently. The mother company and the current company are owned by the same owner.

Q: Dear Sir, I started to work in a company on 28-Feb-2012. In 2014, due to a change in the name of the company/license, they canceled the visa and gave me a new visa to continue. While they changed my visa, they gave me 2 years of gratuity/EOSB. After that, in June 2020, my package was changed due to a specific contract & accordingly, the MOL contract document was changed for visa processing. The changed package is more than previous. Now I have resigned, Please advise; 1. What will be the timeframe to calculate the EOSB (from 2012 or 2014)? 2. Would I receive a gratuity based on my current basic income for the whole year of service (2012/2014 to 2023 Sep.) or my previous pay scale (up to year 2020) & 2020 to now with my current pay scale?

Q: Hi I have been working in a company under a local sponsor with 2 partners for the last 6 years and my visa will expire next month. However, my company has informed me that they shall transfer my visa to their other company with the same OWNER with a new partner (without a local sponsor). In this situation, what do I need to do? Will my previous gratuity be added to my new visa or do I need to take my end-of-service benefits and work as a new employee? Kindly suggest.

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 law On Evidence in Civil and Commercial Transactions (Law of Evidence) govern evidence in civil and commercial disputes 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).