I am a woman working in a salon for six years on a limited contract, which expires in November. My basic salary mentioned in the labour contract is Dh5,000. Two years ago, my salary was increased to Dh10,000. Currently, I have a job opportunity and I want to resign at the end of the labour contract. The salon management know that I do not want to renew the contract and wish to change jobs. However, when I discussed end-of-service gratuity, I was told it would be calculated on the basis of the salary mentioned in the labour contract and not the salary that I currently receive. Their reasoning was that the salary mentioned in the labour contract is certified by the Ministry of Labour. They also said that I was getting a basic salary of Dh5,000 for more than four years with an increase only in the last two years of service. They also told me that I cannot change jobs unless I obtain a no-objection certificate from them. What is my position under the UAE labour law? If current salary is considered in the calculation of end-of-service gratuity, how can I prove it?
The UAE Labour Law stipulates that an employee’s end-of-service gratuity will be calculated on the basis of the last salary received regardless of the salary mentioned in the labour contract. As for the question on transferring sponsorship upon the expiry of a limited labour contract, the questioner may transfer to a new sponsor without needing to obtain a no-objection certificate (NOC) as the questioner has completed more than two years with the current employer. Additionally, a NOC from the employer is no more applicable as per the Ministry of Labour. Finally, the questioner can prove his last salary using the Wage Protection Scheme, bank statements, or other evidence.
How much annual leave is an employee entitled to? Is it connected to the employee’s length of service?
Article 75 and 76 of Federal Law No 8 of 1980 states:
Every worker shall, within each year of service, be granted a period of annual leave of not less than: Two days a month where the worker’s period of service is more than of six months but less than one year, or 30 days a year where the worker’s period of service is more than a year.
Where a worker’s service is terminated, he shall be entitled to annual leave in respect of fractions of the last year.
The employer may fix the date of commencement of annual leave and, if necessary, as per the said article, he has the right to divide such leave into not more than two periods.
Questions answered by advocate Mohammad Ebrahim Al Shaiba of Al Shaiba Advocates and Legal Consultants.