How is end-of-service gratuity calculated?

Reader asks about the current law

  • Gulf News
  • Published: 14:50 April 23, 2013

Ask the law
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A reader in Dubai asks: I would like to know the end-of-gratuity calculation as per Article No. 132 of the UAE Labour Law, clarifying this to me would be highly appreciated.

As per Article (132) of the UAE Federal Labour Law, and in respect to the end-of-service gratuity, we quote the following: A worker who has completed a period of one or more years of continuous service shall be entitled to severance pay on termination of his employment. The days of absence from work without pay shall not be included in calculating the period of service. Severance pay shall be calculated as follows:

Twenty-one days' remuneration for each year of the first five years of service. Thirty days' remuneration for each additional year of service provided that the aggregate amount of severance pay does not exceed two years' remuneration.

Questions answered by Advocate Mohammad Ebrahim Al Shaiba of Al Bahr Advocates and Legal Consultants.