Article 132 of the UAE Labour Law states the following: “A worker who has completed a period of one or more years of continuous service shall be entitled to severance pay on the termination of his employment. The days of absence from work without pay shall not be included in calculating the period of service. The severance pay shall be calculated as follows:
1. 21 days remuneration for each year of the first five years of service.
2. 30 days remuneration for each additional year of service provided that the aggregate amount of severance pay shall not exceed two years remuneration”.
Readers’ questions answered by Advocate Mohammad Ebrahim Al Shaiba of Al Shaiba Advocates and Legal Consultants