I am a woman and have been working in a company based in Dubai for more than three years. I would like to know how the end-of-service gratuity is calculated — whether it is calculated on the basic salary plus the bonus. My company used to give me bonus three times a year.
I work overtime for two hours a day. As per the UAE Labour Law, are the overtime pay and bonus included when calculating the end-of-service gratuity? Will the salary stated in the employment contract or the current salary be taken as the basis?
My maternity leave is supposed to start in May. My employer says in case I apply for maternity leave, my service will be terminated. Is terminating an employee’s service for demanding maternity leave not against the UAE Labour Law? In case my employer terminated my labour contract, can I ask for a compensation because of this fact?
Answer: Article 134 of the Federal Labour Law No. 8 of 1980 states the following: “Without prejudice to what is provided for by some laws on the granting of pensions or retirement benefits to employees in some establishment. Severance pay shall be calculated based on the remuneration last due to the worker for those who are paid on a monthly, weekly or daily basis and on the average basis of the daily remuneration referred to in Article 57 of this law for those who are paid on a piece rate basis.
The remuneration used as a basis for the purpose of calculating severance pay shall not include what is given to the worker in kind, and housing allowance and transport and travelling allowances, overtime pay, representation allowances, cashier’s allowances for recreational and social facilities and any other allowances or increments.
Finally, if the employer terminates a woman employee’s service for the reason that she has applied for maternity leave, such termination would be considered, as per the UAE Labour Law, as arbitrary dismissal. In this case, the questioner has the right to ask for a compensation as per the labour law.
Not honouring offer letter
I am a civil engineer and I got my appointment letter on October 2, 2016 from my company when I was on a visit visa. It was agreed upon that I would get accommodation in addition to a monthly salary of Dh30,000. However, when I finally came back on January 4, 2017, after a wait of three months on employment visa, I found that the employer has not arranged the promised accommodation. They put me in a shared accommodation saying this is a temporary arrangement. In my offer letter, it is mentioned that the company will provide me and my family a fully furnished villa.
I am also receiving a lesser salary than what is mentioned in my offer letter. When I objected to these, the HR Manager told me that these would be provided when the project gets started. The company does not have the projects that were promised to me during the interview. Since I had been facing a lot of problems with this company, I gave my resignation letter on February 6.
The labour contract, which is supposed to be for a limited period, has not been signed and the visa is not yet stamped on my passport. My employer is not ready to cancel my employment visa. Kindly let me know how I can avoid the ban in case my employer approaches the Ministry of Labour for the same.
If I try to go back to my home country, will I be asked for the visa cancellation paper at the airport? Can I cancel the visa myself as per the Ministry of Labour rules? Will the authorities consider that I had been working illegally?
If the questioner has entered the UAE after obtaining the employment visa, it means that the questioner is currently involved in a work relationship with the present sponsor, even if the sponsor has not proceeded with the residence procedures or the certification of the employment contract.
In that case, the questioner shall cancel the visa officially through the Ministry of Labour (Ministry of Human Resources and Emiratisation).
Therefore, I advise the questioner to settle the same with the sponsor amicably, especially as the sponsor himself has violated the Labour Law and has failed to honour the commitments given to the questioner in the employment offer letter.
In case the attempt to reach an amicable solution fails, I advise the questioner to file an official complaint with the Ministry of Labour (Ministry of Human Resources and Emiratisation) in this regard, especially since the Dubai Supreme Court considers that obliging and pushing the employee to resign because he is not being able to obtain his labour rights from the sponsor is considered as arbitrary dismissal.
Finally, in case the ministry imposes a ban on the questioner for breaking the limited contract, the ban might be lifted by the ministry if the labour court rules that the questioner was forced to leave the work which could be considered as arbitrary dismissal.
— Questions are answered by advocate Mohammad Ebrahim Al Shaiba of Al Shaiba Advocates and Legal Consultants
