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Company is liable for gratuity

  • Published: 11:11 August 27, 2009


I would like to know my end-of-service gratuity as per UAE Labour Law as I have worked in a company for more than a year. I want to transfer to a new company after being terminated by the company. My question here is whether my end-of-service gratuity is calculated on the basis of 21 or 30 days and whether I am entitled to a return ticket.

I would like to clarify to the questioner that article 132 of UAE Labour Law 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:

1. 21 days remuneration for each year of the first five years of service.

2. 30 days remuneration for each additional year of service provided that the aggregate amount of severance pay shall not exceed two year's remuneration. As for a return ticket, the questioner is entitled to the same so long as he has not contracted to another company within the UAE.

Questions answered by Advocate Mohammad Ebrahim Al Shaiba of Al Bahar Advocates and Legal consultants