End of Service Gratuity under the UAE Labour Law

[6th Gear]

Do you qualify for end of service gratuity if you have worked full-time in the UAE (six years), on a RAKIA & UK Group Contract?

Please note, for the first 3 years I was on a UK Contract paid in Sterling but Dubai based full-time.

The UK headquarted firm operates here on a RAK based Free Zone license (RAKIA).

Thanks

Edited by 6th Gear on Monday 20th January 12:10

[dxbtiger]

Do you have a contract registered with the Labour Dept?

[6th Gear]

I do indeed.

[dxbtiger]

I think the simple answer is yes then. Afaik freezones still have to comply with labour dept laws, my previous employer was a tecom licence holder and it worked exactly the same way.

Is there some kind of dispute?

[Chilli]

6th Gear said:

I do indeed.

Is it a limited or unlimited contract?

It's worth remembering that if you resign you may only be entitled to a portion of your accrued gratuity, depending on the length of service. We just had a lady leave who missed out on a third of her entitlement as her last day fell 3 days short of completing 3 years.

[Asterix]

...and it's only on your 'basic' salary - If they've bumped up your actual take home with housing allowance and other gubbins then it might be less than you think.

[6th Gear]

No dispute - yet. I was made redundant in December 2012 and just realised (Duh!), I may have been entitled to end of service gratuity having been with the company in the UAE from July 2007 - March 2013. This includes my 3 months notice period which I served.

It's a UK Limited company with offices around the world.

I was on a UK contract for the first few years (paid in Sterling) while working here in the UAE full-time. We had a local sponsor at the time who provided visas. The last few years on a RAKIA contract. I wonder if I am entitled to gratuity for full term with the company.

I will speak with a lawyer today.

Thanks for your input.

[shirt]

out of interest, what is the current gratuity payment for 3yrs service?

also, how do we stand on contract law? i did about a billion hours last year for no additional payment as was told that's what the clause in my contract was for which states 'may be required to work additional.....'

however i read my contract last night and no such clause exists. in fact there are no working hours stated at all.

[dxbtiger]

shirt said:

out of interest, what is the current gratuity payment for 3yrs service?

also, how do we stand on contract law? i did about a billion hours last year for no additional payment as was told that's what the clause in my contract was for which states 'may be required to work additional.....'

however i read my contract last night and no such clause exists. in fact there are no working hours stated at all.

What's your email and I will send you an excel that calculates it.

Edit - you forego some if you leave though, either a 1/3 or 1/2 I think.

[shirt]

pm sent.

3yrs is up end of april and i have a 2mth notice period so no issues there.

[J4m80]

If you resign you get the following

1 - 3 years service = one third of your gratuity entitlement

3 - 5 years service = two thirds of your gratuity entitlement

5 + years = all of it

Gratuity calculated only on your salary not allowances, housing, transport etc

I resigned. Humph.

HTH