Ask the law: Salary vs commission - end-of-service benefits explained

Question: I have been working with a private company for four years at a basic salary of Dh7,000 a month. Six months ago, my employer asked me to amend my employment contract so that my work is commission-based. A month ago, I resigned from my job. How are end-of-service benefits calculated? Is it according to the previous basic salary of Dh7,000? According to the Labour Law, am I entitled to receive an annual leave allowance for a period of three years?

Get exclusive content with Gulf News WhatsApp channel

Answer: Your end-of-service rights including the annual leave salary shall be calculated with the same method as calculating the wages of workers on piecework basis, not according to the previous basic salary of Dh7,000. which was amended by the new contract. As per Article 23 of the law (The daily wage of workers who receive their wages on piecework basis shall be calculated according to the average amount the worker received for the actual working days during six months preceding the request or claim regarding any issue related to the wage).

Article 51 of the law regarding end-of-service benefits for full-time workers states that the end of service benefits shall be calculated according to the last basic wage the worker was entitled to, with respect to those who receive their wages on a monthly, weekly or daily basis, and according to the average daily wage stipulated in the provisions hereof for those who receive their wages on a piecework basis.

Regarding the annual leave salary and as per Article 29 of the law, you shall be entitled to a wage for the accrued leave days if you quit work before using them, regardless of the leave duration, with respect to the period for which you did not obtain your leave. You shall also be entitled to receive leave wage for parts of the year in proportion to the period you spent in work.