Stock Gratuity
According to UAE Labour Law, end-of-service gratuity payment must be calculated on the basis of last-drawn salary, irrespective of the nature of labour contract. Image Credit: Shutterstock

Calculation of end-of-service benefits

Question: I have been working in a private company for two years now. When I was appointed, I signed a two-year agreement with the employer. But after four months of work, I signed a new work contract certified by the Ministry of Labour. The salary I received was as mentioned in the agreement and not according to the employment contract. My question is, if I resign, which contract will be considered for calculating end-of-service benefits? Also, my employment contract is for a fixed term, while the job-offer agreement is for an unlimited period. Please advise.

Answer: End-of-service benefits will be calculated according to the last wage you have received, regardless of what is mentioned in both the contracts. In your case, you will receive the end-of-service dues according to the wage figure mentioned in your offer letter since it is the same wage that you have been receiving. Article 134 of the Labour Law regarding gratuity states: ‘Without prejudice to the provisions of laws that grant pensions or retirement benefits to employees in certain firms, severance pay shall be calculated on the basis of the wage last due for monthly, weekly and daily paid workers and on the basis of the average daily wage referred to in Article 57 hereof for those paid on piecemeal.’ Also, Article 79 regarding annual leave states: ‘A worker who is dismissed or who leaves his or her job after the period of notice prescribed by law shall be paid for any accrued annual leave days. Such payment shall be calculated on the basis of the worker’s wage as on the date when the leave became due.’

In general, the conditions that are more advantageous for the worker will be taken into consideration, whether these conditions are stated in the labour offer or in the contract of Ministry of Human Resources and Emiratisation (MoHRE). This is stipulated in Article 7 of the same law, that states: ‘Any condition contrary to the provisions of this law, albeit precedent to the date of effectiveness, shall be null and void unless they are more advantageous to the worker.’

Regarding the terms of the contract, the court will decide according to the documents submitted and the nature of the relationship between the employee and employer. Moreover, the actual joining date will be considered while calculating the end-of-service dues, irrespective of the MoHRE contract. It is important to note that according to the labour rules, it is a must to have the MoHRE contract for the purpose of visa and Emirates ID. It is also possible to include the conditions of the offer letter in the labour contract or state that the offer letter signed should be considered as part of the labour contract.

Filing eviction suit against tenant

Question: A year ago, I rented my villa to a company against two cheques. I encashed the first cheque, but when I deposited the second cheque in the bank it bounced. The issuer of the cheque has refuse to settle the cheque amount or vacate the villa. Do I have the legal right, according to the tenancy law in Dubai, to file an eviction lawsuit and claim the value of the cheque? What are the procedures of filing such a lawsuit? Please advise

Answer: You have the right to file a case against the company and the signatory of the cheque. Nonpayment is a cause for eviction as stated in Article 25 of Law No (33) of 2008, Amending Certain Provisions of Law No (26) of 2007, Regulating Relationship Between Landlords and Tenants of Real Properties in the Emirate of Dubai, which states: ‘Lessor may request for eviction of the tenant from the property before expiry of the lease term, exclusively if the tenant fails to pay the rental value or any part thereof within 30 days as from the date of being so notified by the lessor, unless otherwise agreed between the parties.’

The procedures of filing an eviction suit are as follows:

The landlord should send a notice authorised by the notary public to the tenant, requesting the overdue payment or else face eviction. After 30 days from the date the tenant receives that notice, the landlord will have the right to sue the tenant at first degree of litigation with the Rental Dispute Centre. The documents required for filing such an eviction suit are:

1. A copy of the latest lease contract (Ejari).

2. In the event of the litigant being a natural person, she or he should attach a copy of her/his Emirates ID. In the event of a legal person/corporate body (company or establishment) being the litigant, a copy of the manager’s Emirates ID (as stated in the Commercial Licence) together with the latest copy of Commercial Licence must be attached.

3. A copy of the landlord’s valid passport along with residence visa (for expatriate) and a copy of his or her Emirates ID.

4. A letter from the bank or a copy of the bank statement, mentioning the plaintiff’s IBAN (International Bank Account Number) in case of monetary claims.

5. A copy of the notarised notice, along with notification officer’s report or registered post receipt, along with a receipt of the acknowledgement of the notice in case of eviction claim.

6. Any document supporting the claim such as correspondence, notices, penalties, electricity and water bills, cheques, letters, etc.

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All documents must be submitted in or translated legally into Arabic and submitted at the Dispute Centre after physically visiting it or by uploading these documents on the Rental Dispute Centre’s web page —

The legal fees should then be paid and hearings should be attended as requested by the centre.