Ask the law: I worked for 15 years, how much is my end-of-service benefit?
I signed a non-compete clause, does that mean I cannot work for a year?
Question:
A month ago, I submitted my job resignation after working in this company for 15 years. My question is: Is there a maximum limit for calculating the end of service? How do I calculate the period of end of service? I also signed a non-compete clause for a year. Does this mean that I will remain without work for a year? Please advise.
Answer:
To answer this question, I would advise the questioner that:
As per Article 51 of the Labour Law, It is required that the end-of-service benefits for the foreign worker in its entirety does not exceed two years’ wage.
The full-time foreign worker, who completed a year or more in continuous service, shall be entitled to end of service benefits at the end of his service. The end of service is calculated according to the basic wage as per the following:
a. A wage of (21) twenty one days for each year of the first five years of service;
b. A wage of (30) thirty days for each year exceeding such period.
c. The foreign worker shall be entitled to a benefit for parts of the year in proportion to the period spent at work, provided that he completed one year of continuous service.
Non-competition doesn’t mean that you cannot work at all in the whole UAE, but you have to be far from the geographical area to the extent necessary to protect the legitimate business interests of the employer and not to cause significant harm to him. The requirement is specified, in terms of time, place and type of work, to the extent necessary to protect the legitimate business interests.
Here's our ESB/Gratuity Calculator:
If a dispute arises over the non-competition clause and it is not settled amicably, the matter shall be referred to the judiciary and the burden of proving the alleged damage shall lie with the employer.
Moreover, the non-competition clause shall not apply if the reason for terminating the contract is attributed to the employer or the breach of his legal or contractual obligations. It may also be agreed in writing between the employee and employer not to apply the non-competition clause after the termination of the employment contract.
As a general rule, the worker shall be exempted from the non-competition clause under the following conditions:
a. If the worker or the new employer pays to the previous employer, compensation not exceeding three months of the worker’s wage as agreed upon in the last contract, subject to the previous employer’s written consent thereto.
b. If the contract is terminated during the probationary period.
c. Any professional categories that are in demand in the national labour market and determined by resolution of the Minister in accordance with the workers’ classification approved by the Cabinet.