UAE Gratuity: How to Calculate your End of Service
UAE Gratuity: How to Calculate your End of Service. Image Credit: Gulf News

Question: I have been working to a private company for 10 years on commission basis only. My question is, currently I don’t want to continue working. How is the end of service calculated, given that the commission I get varies from one month to another? Do I have the legal right to calculate annual leave allowance for the previous 4 years? Please advise.

Answer: I would advise the questioner that:

1. Your end of service rights will be calculated on the same method of Calculating the Wages of Workers on Piecework Basis 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 the (6) 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 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, 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.

Without prejudice to the legislation regarding the granting of pensions or retirement benefits to workers in some establishments, 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.”)

2. 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 the 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 and it shall be calculated according to the basic wage.