New UAE Labour Law: Are part-time workers entitled to end-of-service benefits?
What part-time employees need to know about gratuity and how it is calculated
Dubai: If you are a part-time worker in the UAE, you may be wondering if you are entitled to end-of-service benefits at the end of your service.
Article 52 of the new UAE Labour Law - Federal Decree Law No. 33 of 2021 – states that for workers who are employed under patterns or models of work apart from full-time work will have their gratuity calculated as per details issued in executive regulations that will be issued specifically for such workers.
Following the issuance of the federal law, Cabinet Resolution No. (1) of 2022 was issued by the Ministry of Human Resources and Emiratisation (MOHRE) which provided these details. In Article 30, the resolution refers to Article 52 (above), and provides details of which part-time workers are eligible for gratuity and how it is calculated.
Am I eligible to get gratuity as a part-time worker?
Clause 2, Article 30 of Cabinet Resolution No. (1) of 2022 states that a part-time worker who has worked for less than one year is not entitled to gratuity.
How will my gratuity be calculated?
Clause 1 of the Article provides an equation for calculating severance pay for part-time workers based on how much they are working in comparison to a full–time employee.
As per the formula provided in the resolution, a part-time workers hours would be divided by the number of hours a full-time employee works as per contract. This fraction multiplied by 100 would provide the percentage on which the gratuity would be calculated.
Here is a detailed look at what Article 30 of Cabinet Resolution No. (1) of 2022 states:
1. The number of working hours set out in the employment contract per year divided by the number of working hours in the full-time contract per year multiplied by 100 equal to the percentage on which the end of service benefit should be calculated, then, this percentage should be multiplied by the value of the end of service benefit due for the full-time employment contract.
2. The end of service benefit shall not apply in the case of temporary employment if its duration is less than one year.