Questions & Answers
How will the gratuity be calculated if the company changed my contract and salary?
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?
Dear Questioner,
Greetings!
Thank you for your question.
Concerning your entitlement to End of Service Benefits (ESOB). and based on the details you provided, we would like to provide the following information in response to your query:
1. Calculation Period for ESOB: Your EOSB will be calculated with effect from 2014 to 2023. This opinion is based on the information you shared, that you have already received the ESOB for the period of 2012 -2014.
2. Basic Salary Consideration: In accordance with Article 51 (5) of the prevailing labor law in the UAE, your end-of-service benefits will be determined based on your last applicable basic salary.
It is essential to note that this calculation will be carried out according to the terms of your most recent employment contract.
If you require any further assistance in this matter, feel free to contact our office.
Maryam Alyassi Advocates & Legal Consultants.
Best regards.
Dear Client,
Thanks for your question, I hope you are doing well. I will definitely assist you with this matter.
The calculation of your End of Service Benefit (EOSB) in the UAE is typically based on your most recent employment contract and salary before resigning.
The EOSB is calculated from the start of your last employment contract, and the gratuity is based on your last drawn basic salary.
If your contract was changed in 2020 with a higher package, the EOSB calculation should use your salary from 2020 to the present.
For any further legal assistance, you can WhatsApp us. We have an extensive team of knowledgeable and experienced lawyers to provide the legal assistance you need.
We will definitely be happy to help you.
Thanks & Regards
ABDUL WAHIED
