What is the legal time limited for pursuing and claiming outstanding unpaid bonuses?
An employee or employer can file a case in court over employment-related matters within a period of one year, in accordance with Article 6 of the Federal Law No.8 of 1980. This labour law says: “Without prejudice to the provisions concerning collective labour disputes stated in this law, if the employer or the worker or any beneficiary thereof raises a claim concerning any of the rights accruing to any of them according to the provisions of this law, he shall submit a request thereof to the concerned labour department. This department shall summon the two parties to the dispute and shall take whatever action it deems necessary to settle the dispute amicably. If an amicable settlement is not reached, the said department must within two weeks from the date of submitting the request, submit the dispute to the concerned court. The submission must be accompanied with a note including a summary of the dispute, The arguments of the two parties and the observation of the department. The court shall, within three days from date of receiving the request, fix a sitting to consider the claim and the two parties shall be notified thereof. The court may summon a representative of the labour department to explain the note submitted by it. In all cases no claim for any entitlement due under the provisions of this law, shall be heard if brought to court after the lapse of one year from the date on which such entitlement became due, and no claim shall be admitted if the procedures stated in this article are not adhered to.”
Does an employee have the right to claim for bonuses, commissions and allowances, including transport, while claiming end of service benefits. And if my basic salary has changed several times, which one is considered while calculating gratuity?
Article 132 of the UAE Labour Law Federal Law No.(8) of 1980 says: “ 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: 21 days’ remuneration for each year of the first 5 years of service; and 30 days remuneration for each additional year of service provided that the aggregate amount of severance pay shall not exceed 2 year’s remuneration.”
Also the end of service should be calculated according to Article 134, as amended by Federal Law no.12 1986, which says: “Without prejudice to what is provided for some laws on the granting of pensions or retirement benefits to employees in some establishments. Severance pay shall be calculated on the basis of the remuneration last due to the worker for those who are paid monthly, weekly or on a daily basis, and on the average basis of the daily remuneration referred to in article 57 of this law for those who are paid at piece rate basis.
“The remuneration used as a basis for the purpose of calculating severance pay shall not include what is given to the worker in kind, and housing allowance and transport and travelling allowances, overtime pay, representation allowances, cashier’s allowances, children education allowances, allowances for recreational and social facilities and any other allowances or increments.”
Pay for the purposes of end of service gratuity is generally accepted as being the employee’s “basic pay”, excluding allowances, provided that the contract of employment properly distinguishes between the basic pay and allowances.