Calculating end of service benefits

  • Published: 18:00 October 4, 2012

SUBJECT
Employment

 I would like to know my end-of-service gratuity under the UAE Labour Law, as I have worked in a company for more than two years. Presently I want to transfer to a new company after being terminated by the company. My question here is whether my end-of-service gratuity is calculated on the basis of 21 or 30 days? Please advise me.

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