End-of-service dues
Question: A woman asks: I have been working for a Dubai-based company for almost five years under a limited period contract that expires in the next two months. When my contract expires I plan to leave the company and join a new one. Last year I asked the company to give me unpaid leave for four months as my son had been admitted to hospital. The company approved my request. Related to my end-of-service gratuity the company says that, as per UAE Labour Law, the said unpaid leave period shall not be included in the calculation of the end-of-service period, and according to the company my work period shall be calculated as being less than five years by the end of the current employment contract. Is that correct and as per the law? And how do I calculate my end-of-service gratuity?
Answer: Article no 132 of the Federal Labour Law No 8 of 1980 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: 21 days’ remuneration for each year of the first five years of service. 30 days’ remuneration for each additional year of service provided that the aggregate amounts of service pay shall not exceed two years’ remuneration.”
Arbitrary dismissal
Question: A questioner asks: “I worked for a company for more than a year; the said company terminated me without reason. I went to the Ministry of Labour to claim my labour dues, the ministry informed the employer that such termination is deemed arbitrary dismissal and advised him to pay me three months’ salary as compensation in addition to my labour dues. However, the employer refused to do this and said that it was not arbitrary dismissal and asked for the case to go to court. If the court finds that I was arbitrarily dismissed, will it decide on my compensation as an amount equivalent to three months’ salary as per the labour ministry advice? Will such a calculation be on the basis of the basic or total salary? Will it be on the basis of the salary mentioned in the employment contract or the salary I am receiving currently, which is more than the one mentioned in the contract and how do I prove what I am currently paid?
Answer: If the court finds the questioner was arbitrarily dismissed it will assess the appropriate compensation, which is normally from one to three months’ salary, according to the service period the worker has completed. Such compensation shall be calculated on the basis of the last total salary received by the questioner, regardless of the salary mentioned in the employment contract. The current salary can be proved through a bank transfer.
Company shut down
Question: A questioner asks: I am on a two-year limited contract and have completed one year with my current employer. For the past three months I have not worked because the company has closed down and the manager has fled due to financial problems the company is facing. Can I file a labour complaint at the labour ministry to cancel my visa without a ban and join a new company? My company made me sign a letter saying I would not work for a competitor.
Answer: The questioner should file a complaint before the Ministry of Labour and tell them the company has closed. In such an event the ministry might allow the questioner to transfer to a new company without a ban.
Questions answered by Advocate Mohammad Ebrahim Al Shaiba of Al Shaiba Advocates and Legal Consultants
