I have been terminated for redundancy due to internal restructuring. Am I eligible for any severance pay?

In the UAE, if you've completed at least one year of continuous service, you're entitled to severance pay (often called gratuity) when your employment ends.

Redundancy is generally considered a valid reason for termination, so it shouldn't affect your eligibility for this payment.

You can certainly try to negotiate with your employer to convert the notice pay to severance pay.

This would essentially mean they pay you the equivalent of your salary for those 6 months as a lump sum instead of having you work through the notice period.

If you need further clarification, we can discuss more. Kindly share your WhatsApp number to proceed.

Severance Pay (End of Service Gratuity):

Yes, you are entitled to End of Service Gratuity (EOSB) under UAE Labor Law (Federal Decree-Law No. 33 of 2021), calculated on the basis of 21 days’ basic salary for each of the first 5 years and 30 days’ basic salary for each additional year (after completing 5 years).

Since you have served 10 years, you are eligible for full gratuity.

Notice Period Compensation:

If the company does not require you to work during the 6-month notice period, they must compensate you for the notice period as per your contract.

You cannot automatically convert notice pay to severance unless both parties agree.

However, you can negotiate with your employer to merge the notice pay into a lump-sum settlement, including gratuity and any other entitlements.

Recommended Steps:

Request a full and clear settlement breakdown from your employer.

Negotiate the conversion of your 6-month notice into a lump-sum payout as part of your final settlement.

Ensure your gratuity and any unused leave payments are correctly calculated and included.

For assistance in reviewing your settlement and negotiating on your behalf, contact us by phone.

GS Advocates and Legal Consultants.

Dear Questioner,

1. Severance Pay Eligibility: Yes, under UAE Labour Law, employees terminated due to redundancy are entitled to end-of-service gratuity if they have completed at least one year of continuous service.

Since you have served for more than 10 years, you are eligible for severance pay based on your length of service.

2. Conversion of Notice Pay to Severance Pay: If your employer does not require you to serve the notice period, they are obligated to pay you in lieu of notice.

However, this is separate from severance pay and cannot typically be converted unless agreed upon mutually.

For further assistance, you may contact me by phone.

Mohamed salah

Legal Consultant