UAE Labour Law News

31/12/2023

Wishing a very happy, healthy, prosperous and peaceful New Year 2024

27/08/2023

27/08/2023

28/05/2023

UAE Standard Work Visa 2023 New Changes Announcement

The UAE government has made new changes to UAE Standard Work Visa 2023. It’s unbelievable and these New Changes were Approved by the UAE’s Federal National Council (FNC). A change has been made to the duration of the work Visa. Now foreign workers can work and live in UAE for three years, previously two years. This decision has been taken to reduce the financial burden on the employer and companies in UAE.

Because every year thousands of workers come to UAE from different parts of the world. According to the Ministry of Human Resources & Emiratisation (MOHRE) foreign workers in UAE will get Free Work Permit, Insurance, Meals, and Accommodation for Free. That’s why in UAE majority of the workers are from outside UAE in Hotels, Taxis, Parks, and everywhere. You can get a Job in Dubai very quickly, read it below.

Changes that have been made in UAE Standard Work Visa 2023

Table of Contents

Duration of the Work Visa: The UAE Government extends the Standard Employment Visa from two to three years.

Waiver of work permit fees for job changes: If an applicant leaves a Job, or changes a Job and finds another Job so he/she does not need to give the work permit fee again.

Spend Minimum 1 year: Other changes have been made that the employee spend a minimum of one year with an employer following the probation period.

Difference Between Employer and Employee

The employer is the one who hires and Pays.

The employee is the one who works under the employer.

employer.

Benefits of Working in UAE

Why you should work in UAE? If you have been offered a Job in UAE then there are the following benefits.

You will live in Free Tax Zone. There will be No tax on your Salary.

You will get Free accommodation from the company.

You will get a one-time Free meal from the employer.

The employer will pay the Fees for your work permit.

Some big companies in UAE like Emirates, Emaraat, Jumeirah Group, Emaar Properties, Etisalat, DAMAC Properties, EZhire, etc offer One Return Airfare Tickets/per year to their employees so they can travel to their Homes.

13/05/2022

UAE President Sheikh Khalifa bin Zayed passes away

He served as the nation's leader since 2004
إنا لله وإنا إليه راجعون
اللهم أجرنا في مصيبتنا واخلفنا خيرا منها .. اللهم اغفر لعبدك خليفة بن زايد بن سلطان آل نهيان و ارحمه يا ذا الجلال و الإكرام و ادخله برحمتك جنات النعيم.

29/04/2022

Eid Al Fitr 2022: Paid parking hours, Dubai Metro, bus timings announced

Technical testing, Happiness Centres to be closed from Saturday, April 30

Dubai’s Roads and Transport Authority (RTA) has announced the business hours of all its services during the Eid Al Fitr holiday, including Customer Happiness Centres, paid parking zones, public buses, Dubai Metro and Tram, marine transit means, and technical testing centres.

Public Parking

>> Public Parking: Parking fees will be free of charge (except for multi-storey parking), starting from 30 April until 6 May 2022. Parking fees will be reactivated from May 7, 2022.
Happiness Centres

>> Customers Happiness Centres will be closed from Saturday, April 30 to Sunday, May 8. Services will resume on Monday, 9.
> The smart customer happiness centres at Umm Ramool, Deira, Al Barsha, Al Manara and RTA’s Head Office will operate as usual around the clock.
>> Service provider centres (technical testing) will be closed from Saturday, April 30 until Saturday, May 7, and open on Sunday, May 8.

Metro, Tram and Bus services

>> Dubai Metro (Red and Green Line) stations will operate from Monday to Wednesday from 5am to 1am (on the following day).

>>> Dubai Tram will operate from Monday to Wednesday from 6am to 1am (on the following day).

>> Public bus services will operate during the Eid holidays as follows:
Main Stations, including Gold Souq Station, from 5 am to 12:29 am (past midnight), and; Al Ghubaiba Station from 4:14 am to 12:58 am (past midnight).
Sub-stations, including Satwa Station, will operate from 4:57 am to 11:00 pm except for Route C01 which will be operating around the clock.
Al Qusais Bus Station will operate from 4:34 am to 12:04 am (past midnight),
Al Quoz Industrial Station from 5:05 am to 11:35 pm, and...
Jebel Ali Station from 4:58 am to 11:17 pm.

>> The timing of Metro Link Bus Services at Rashidiya, Mall of the Emirates, Ibn Battuta, Dubai Mall/Burj Khalifa, Abu Hail, and Etisalat is synchronised with the metro service schedules.
>> The Inter-city Bus and commercial buses will be operating as follows: Sub Stations, such as;
Al Ghubaiba, from 6:40 am to 10:20 pm,
Union Square from 4:25 am to 12:00 am (midnight),
Deira City Centre from 6:40 am to 11:30 pm,
Al Sabkha from 6:30 am to 10:30 pm,
Etisalat Metro Station from 6:00 am to 9:00 pm,
Abu Hail Metro Station from 6:30 am to 10:35 pm,
Hatta Station from 5:30 am to 9:30 pm.

External stations:
Jubail Station at Sharjah from 5:30 am to 11:15 pm,
Ajman from 4:30 am to 11:00 pm.

>> Water Bus:
The water bus services will operate at Dubai Marina Stations as follows: Marina Mall –
Marina Walk (BM1) from 12pm (noon) to 11:45 pm;
Marina Promenade – Marina Mall & Marina Terrace – Marina Walk from 2pm to 10:45 pm; Marina Mall – Marina Bluewaters (BM3) from 4:10 pm to 11:45 pm.

11/03/2022

HAPPY 61st BIRTHDAY TO H.H.SHEIKH MUHAMMAD BIN ZAYED AL NAHYAN. MAY ALLAH SWT BLESS YOU MORE POWER.🤲🏻

03/12/2021

Establishment of Facilitation Desks at airports in Pakistan by Federal Tax Ombudsman.

22/05/2021

Dear Members and readers, An important travel update;
Pakistan Government has advised all those travelling from UAE to Pakistan to present a Negative PCR test starting from May 29,2021 from any one if listed 49 testing facilities across the United Arab Emirates.
Please share information, sharing is Caring.

07/04/2021

Rights and Responsibilities I der Limited term contract as per UAE LABOUR LAW.

24/01/2021

27/10/2020

Passengers from India to Dubai stopped again as COVID-19 test result from 3 more labs rejected

Pre-travel RT-PCR test results from 7 labs in India now banned for Dubai-bound passengers

Pre-travel RT-PCR test results from 7 labs in India now banned for Dubai-bound passengers

22/10/2020

UAE: What should you do if you were in close contact with a COVID-19 positive person?

Dubai Health Authority clarified the steps that people need to follow for quarantine.

Dubai Health Authority clarified the steps that people need to follow for quarantine

22/10/2020

Pakistani, Indian job seekers warned not to travel to Dubai on tourist, visit visas

Warning comes after hundreds of job seekers on tourist visas denied entry at Dubai.

Warning comes after hundreds of job seekers on tourist visas denied entry at Dubai

21/10/2020

UAE public holiday announced, three-day-long weekend

The observation of the Prophet's birthday gives UAE residents a one-day holiday

25/09/2020

UAE expats: Should you send money via an exchange house or your bank?

Currency exchange rates are being competitively set, but additional charges vary starkly!

Currency exchange rates are being competitively set, but additional charges vary starkly!

06/09/2020

How to calculate UAE gratuity pay

Use our formula to calculate your gratuity pay depending on contracts and service period
Dubai: Calculating your end-of-service (gratuity) pay is important. Knowing how the total sum is reached will help you identify any errors made by your company.

Contract types

A limited or fixed term contract is where the employee agrees to stay with the company for a certain number of years with a set end date. Resigning before the end of this period could mean one or all of these; a labour ban, loss of labour rights or even payment of compensation to the employer.

An unlimited contract has no such period clause or number of years, and therefore, has no end date. However, a notice period of one to three months is applicable for termination of contract from either side.

Gratuity pay is calculated based on the your basic wage/salary paid into your account without additional allowances or bonuses.

Article 134 of the Labour Law clarifies what this constitutes:

"The wage used as a basis for calculating the end of service gratuity shall not include payments made to the worker in reimbursements, housing, transport and travel allowance, overtime pay, representation allowance, cashier’s allowances, children education allowance, allowances for recreational and social services, and any other bonuses or allowances."

No gratuity pay?

If you are terminated from your job, unless you break the rules as stated in Article 139 of the Labour Law, the employee is still entitled to gratuity pay. The rules in this Article state:

The employee shall be deprived of his/her end of service gratuity in the following two cases:

a - If he or she is dismissed from service for any of the reasons set forth in Article 120 or if he or she quits employment in view of avoiding the dismissal in accordance with the article. (This article deals with dismissal during or at end of probation, or due to charges of material loss, failure to perform basic duties even after a warning, interrogation, crime etc.)

b - If he or she resigns without notice in cases other than the ones set in Article 121 (if employer breaches contract or in case of assault), and such with regards to unlimited contracts, or prior to the completion of five years of continuous service in limited contracts.

Calculations for Limited Contract gratuity pay

Less than 1 year of service

Leaving work before completing one (1) year of service means that you are not entitled to any gratuity pay.

Between 1 year and 5 years of service

Employee is entitled to full gratuity pay based on 21 days salary for each year of work.

5 or more years of service

Employee is entitled to full gratuity pay based on 30 days salary for each year of work.

Calculation example

Basic salary example: Dh10,000

a. 10,000 ÷ 30 = 333.30. Your daily wage is Dh333.30.

b. 330.30 x 21 = 6,936.30. So 21-days salary is Dh7,000 (rounded up from Dh6,999.30) in gratuity entitlement for each year of service. Multiply this figure for every year of service up to 5 years.

For 30 days calculation for those exceeding 5 years of service

c. 333.30 x 30 = Dh9,999. So 30-days salary is Dh9,999 in gratuity entitlement for each year of service – so long as the total figure does not exceed total salary of two years.

Therefore, regardless of the years spent at a firm, total gratuity in the above example cannot exceed Dh240,000.

Calculations for Unlimited Contract gratuity pay

Less than 1 year of service

Leaving work before completing one (1) year of service means that you are not entitled to any gratuity pay.

Between 1 year and 3 years of service

Employee is entitled to one third (1/3) of the 21-days gratuity pay.

Between 3 years and 5 years of service

Employee is entitled to two thirds (2/3) of the 21-days gratuity pay.

5 or more years of service

Employee is entitled to full 21-days gratuity pay for each year of service.

Calculation example

Basic salary example: Dh10,000

a. 10,000 ÷ 30 = 333.30. Your daily wage is Dh333.30

b. 333.30 x 21 = 6,999.30. So 21-days salary is Dh6,999.30

Of this figure of Dh6,999.30, only 1/3 is payable if you have worked between 1 and 3 years, so the total gratuity pay would be Dh2,333.10.

Only 2/3 is payable if you have worked between 3 and 5 years, so the total gratuity pay would be Dh4,666.20.

The full Dh6,999.30 is payable if you have completed 5 years.

These calculations are not to be treated as law, they are for your reference only. For any disputes or further clarification, contact the UAE Ministry of Human Resources and Emiratisation.

Formula

1. Basic salary ÷ 30 = Daily wage

2. Daily wage x 21 = 1 year gratuity figure (Or x30 if applicable)

3. 1 year gratuity figure x years of service = Total gratuity owed

Only continue for Unlimited Contract calculation

4. Total gratuity owed ÷ 3 = One third (1/3) of total gratuity

5. Either take this figure (between 1 and 3 years) or multiply it by two (between 3 and 5 years)

6. For over 5 years, total gratuity owed will be payable.

Source: UAE Ministry of Human Resources and Emiratisation Laws

UAE LABOUR LAW News is not responsible for any amendments made to the UAE Labour Law. All labour disputes must go through the Ministry of Labour. This article may only be used as a guide.

05/09/2020

Get back to the basics, Doctors advise after surge in daily Covid cases in UAE

Doctors said that though the possibility of a second wave of restrictions is premature at this point.

25/08/2020

The Abu Dhabi Emergency, Crisis and Disasters Committee, in cooperation with the Department of Health - Abu Dhabi, approved two sets of tests for people to enter Abu Dhabi from Thursday (August 27)."Entry will be allowed within 48 hours of receiving a negative PCR test result, or with a negative DPI laser test result accompanied by a negative PCR test result received within six days," the Abu Dhabi Government Media Office tweeted on Tuesday.

The committee noted that the same type of test cannot be taken twice in a row within six days.

So far, people had to either show a negative PCR test result within 48 hours from receiving the result or DPI laser test taken at the border.

However, volunteers for the Covid-19 clinical vaccine trials are exempted from these entry measures and are authorised to use emergency vehicle lanes for a smooth journey.Anyone violating these procedures will be fined as outlined by the Attorney General.

In the past few days, local authorities have upped the awareness drive with social media campaign, regular messages from decision makers to avert a second wave of the pandemic.

More Dh50 testing centres:
Ahead of the new test rules, the health authorities have ensured enough DPI testing facilities are opened across the UAE.

From last Saturday, people are able to take the Dh50 rapid test at three locations in Abu Dhabi - Zayed Sports City, Corniche (Saturday to Thursday from 8:00am to 8:00pm) and Laser Screening Centre in Ghantoot (24X7), Al Ain - Al Hili Wedding Hall (seven days a week from 10:00 am to 10:00 pm) and Al Hili, Dubai - Mina Rashed and Al Khawaneej and across the northern emirates - Sharjah Golf and Shooting Club, Ras Al Khaimah and Fujairah (all seven days a week from 10:00 am to 8:00 pm), and Emirates Hospitality Centre in Ajman (24X7).

How to book appointments:

For locations operated by Ambulatory Healthcare Services (SEHA), appointments can be made through the SEHA app.

For locations operated by Tamouh Healthcare, book an appointment via the website for: Ghantoot, Al Hili Wedding Hall or Ajman.

17/08/2020

The Supreme Committee of Crisis and Disaster Management in Dubai has clarified that the conditions for residents returning to include the following:

1. Residents are required to apply for an entry permit through the website of the General Directorate of Residency and Foreigners Affairs - Dubai.
2. A certificate must be presented proving they have tested negative in a valid PCR test before boarding the plane and on arrival at the airport.
3. All returning residents must download the COVID-19 DXB Smart App.
4. The mandatory 14-day quarantine is not required for residents that have presented a negative test result certificate at the airport.

17/08/2020

UAE airlines are seeing 40-50% passenger capacity as COVID-19 strategy pays off
Winning them back... Traveller numbers to Dubai are on the rise and airlines are starting to see gains. But the decisive break will come when India allows resumption of commercial flights.
Demand is spiking and upcoming IPL event in UAE too will give numbers a lift
Dubai: Passenger capacity on UAE airlines is now at the 40-50 per cent or over mark on average as the carriers bring back more routes to their networks.

Booking enquiries have shot up after UAE said an approval from the Federal Authority for Identity and Citizenship (ICA) will no longer be required for residents returning to the country. Plus, Dubai is seeing benefits from allowing foreign visitors from July 7 onwards.
The travel sector is also pinning hopes on India routes when this year’s IPL T20 cricket tournament gets cracking from September onwards at stadiums in the UAE. (One of the most visible and followed sporting events in the world, India’s domestic competition was shifted on concerns about the mounting number of COVID-19 cases.)

After three devastating months from March, local carriers will be glad to see any incremental improvement in passenger numbers. And industry sources say the 40 per cent plus average bodes well for the immediate future as long as the pandemic remains in check.

There is demand for flight seats to “every country from every country,” said Mohammed Shah, manager at Dubai-based Regal Tours. “The kind of business I had in recent weeks, I haven’t had in years.”

At this stage, a lot of that pent up demand will be from those waiting to catch the first flights as and when travel to those countries are allowed. What the industry will be watching out for is whether today’s pent-up demand can sustain itself in the coming weeks and months.

All on board

For now, the demand is very much there.

“We are seeing it for all the flights,” said Javed Siddiqui, branch manager at Al Rais Travel. “Emirates and Etihad flights headed to Australia are packed as they are the only two airlines serving the region, while India-bound flights, operating under pacts with the government, are gaining momentum.

“A lot of people have been calling.”

Emphasis is on ‘healthy’

Emirates and Etihad did not immediately respond to Gulf News’ queries on passenger traffic numbers over recent weeks. However, the budget carrier flydubai said it was seeing a “healthy” demand for travel on the 22 destinations it is now operating on.

“As more countries ease travel restrictions, we can expect more passengers to be encouraged to travel,” the Dubai carrier said in a statement. “We look forward to adding more destinations to our network over the next few weeks.”

All eyes on India

Hosting the IPL from September 19 to November 10 will definitely offer a lift to airline passenger numbers on routes between the UAE and India (and for those players and support staff flying into the UAE from elsewhere).

But a full accounting of the India networks will happen as and when the India government decides it is safe to resume full commercial flight services.

No commercial flights have been scheduled to and from India until August 31 and industry sources expect the government to continue this policy until things begin to improve on bringing down infection cases.

“For now, we have demand only for repatriation flights to India, Pakistan, and Sri Lanka,” said a spokesperson for UAE-based Uranus Tours and Travels. There will not be much activity on other routes until corporate and outbound travel from India resumes, he added.

India’s fast-growing outbound tourism market is expected to be worth $62 billion by 2026, according to some estimates. The country has been allowing only repatriation flights and those operating under ‘air bubble’ agreements.

UAE’s flight operators have always flown Indian customers to different parts of the world, be it for a business trip to California or a vacation in Bangkok. Now with the Indian travel crowd cut off from the equation, demand for these flights is nowhere near pre-COVID levels.

They are back

Dubai’s strategy of opening up to overseas visitors is paying off. Multiple sources say there is a dramatic increase in travel to the city since July 7, made possible by effective management of the pandemic and which resulted in dwindling infection numbers and rising recovery.

“UAE’s airlines took bold steps to gain confidence of travelers,” said a travel industry source. “As we move ahead, many other countries have started to open their borders for travel. As a travel agency, we are positive to generate business with the support of our principal airlines.”

16/08/2020

UAE extends grace period for residency violators

The UAE has extended the grace period for residency violators for another three months
Abu Dhabi: The Federal Authority for Identity and Citizenship (ICA) has announced the extension of the grace period granted to residency violators for another three months, along with fine exemptions.

Major General Saeed Rakan Al Rashidi, Director General of Foreigners Affairs and Ports at ICA, said the grace period extension runs from August 18 to November 17 and includes all violators with visas expired before March 1.

The overstay violators will also be expected from all fines provided they leave the country.

Al Rashidi made it clear that the initiative covers all violators of the entry and residency law and affirmed that the violators will not be banned from entering the UAE provided they leave the country.

He emphasized that visa holders wishing to leave the UAE from Abu Dhabi, Sharjah and Ras Al Khaimah airports must arrive 6 hours before the flight.

14/08/2020

UAE-Life/Visit/Tourist Visas OPEN to all | Check New Visa Cost for 30 – 90 days visa

Visit and tourist visas to Dubai (30 – 90 days) are now open to almost all nationalities. In March, the Government announced the suspension of visit and tourist visas to all countries which is now lifted after 5 months of long wait.

The GDRFA-Dubai had started issuing visit/tourist visas to people who applied it through tourism companies; the approval time is 2-3 days. Amer center and many travel agents confirmed this.

A customer service employee at an Amer branch said that they have started receiving applications for visit visas and there are no restrictions on nationalities.

Travel agents also confirmed that the visit visa applications they submitted to GDRFA Dubai are getting approved for all nationalities.

How to apply for Visit/Tourist Visa:

Amer center, which manage visa related issues in Dubai said that visit and tourist visas were being issued for people outside UAE. However, people would need to reach the tourism companies (travel agents) to apply for them.

Note that you can only apply for visit/tourist visa if regular schedule flights between your country of origin and UAE are open. If your country flights are not yet opened, please wait and do not apply.

Required Document:

· Passport copy
· White background photo
· National ID (if asked)

Note: if someone you know is applying for your visit/tourist visa from inside UAE, he/she may be asked to submit his/her passport and resident visa copy too.

Visit/Tourist Visa Cost:
Below are the visit or tourist visa prices which may slightly vary from one travel agency to another, so before applying, check the price with more than 1 travel agent.
· 30 Days Visa: 450 AED
· 90 Days Visa: 1100 AED

Do I need GDRFA or ICA Approval?

No, those who wish to visit Dubai on new visit or tourist visa will not be asked to apply for GDRFA or ICA Entry permit because it is directly issued by GDRFA Dubai that means the traveler is already in record and is allowed to travel.
Important Points:
· Return air ticket is must.
· Health insurance is compulsory which covers COVID-19.
· Currently, only Dubai is issuing visas.

13/08/2020

ICA/GDRFA approval mandatory for UAE residents returning to Dubai, say airlines

Returning UAE residents flying to Dubai will need a pre-approval as the authorities have revoked the earlier decision to do away with return permits, Khaleej Times has learnt.

The National Emergency Crisis and Disaster Management Authority (NCEMA) and Federal Authority for Identity and Citizenship (ICA) had announced early on Wednesday that returning residents don't need a pre-approval to return. That decision stands revoked according to the latest tweet sent out by airlines."Dubai authorities have revoked the decision to allow returning residents without ICA/GDRFA approval. Dubai residence visa holders who are flying back to Dubai must have return approval from the GDRFA," Air India Express tweeted on Thursday. The airline is operating the Vande Bharat flights that is carrying stranded UAE residents in India back to the emirates.The airline said the passengers to Dubai must download a Dubai Smart App and those flying to Abu Dhabi and Sharjah must download Al Hosn Smart App.

Fly Dubai has issued a similar notice to its travel partners saying the decision of not wanting a pre-approval stands revoked.

The Dubai Airports Operations Control Centre also sent out a notification to airlines stating returning residents need pre-approval.

"Please kindly note the decision to allow returning residents without ICA/GDRFA approval has been revoked. The existing process remains whereby all Dubai residents via holders who are flying back to Dubai must have return approval from the GDRA (General Directorate of Residency and Foreigners Affairs)," the control said on Wednesday.

An official statement from GDRFA and ICA are awaited.

13/08/2020

How to calculate UAE gratuity pay

Use our formula to calculate your gratuity pay depending on contracts and service period

Calculating your end-of-service (gratuity) pay is important. Knowing how the total sum is reached will help you identify any errors made by your company.

Contract types

A limited or fixed term contract is where the employee agrees to stay with the company for a certain number of years with a set end date. Resigning before the end of this period could mean one or all of these; a labour ban, loss of labour rights or even payment of compensation to the employer.

An unlimited contract has no such period clause or number of years, and therefore, has no end date. However, a notice period of one to three months is applicable for termination of contract from either side.

Gratuity pay is calculated based on the your basic wage/salary paid into your account without additional allowances or bonuses.

Article 134 of the Labour Law clarifies what this constitutes:

"The wage used as a basis for calculating the end of service gratuity shall not include payments made to the worker in reimbursements, housing, transport and travel allowance, overtime pay, representation allowance, cashier’s allowances, children education allowance, allowances for recreational and social services, and any other bonuses or allowances."

No gratuity pay?

If you are terminated from your job, unless you break the rules as stated in Article 139 of the Labour Law, the employee is still entitled to gratuity pay. The rules in this Article state:

The employee shall be deprived of his/her end of service gratuity in the following two cases:

a - If he or she is dismissed from service for any of the reasons set forth in Article 120 or if he or she quits employment in view of avoiding the dismissal in accordance with the article. (This article deals with dismissal during or at end of probation, or due to charges of material loss, failure to perform basic duties even after a warning, interrogation, crime etc.)

b - If he or she resigns without notice in cases other than the ones set in Article 121 (if employer breaches contract or in case of assault), and such with regards to unlimited contracts, or prior to the completion of five years of continuous service in limited contracts.

Calculations for Limited Contract gratuity pay

Less than 1 year of service

Leaving work before completing one (1) year of service means that you are not entitled to any gratuity pay.

Between 1 year and 5 years of service

Employee is entitled to full gratuity pay based on 21 days salary for each year of work.

5 or more years of service

Employee is entitled to full gratuity pay based on 30 days salary for each year of work.

Calculation example

Basic salary example: Dh10,000

a. 10,000 ÷ 30 = 333.30. Your daily wage is Dh333.30.

b. 330.30 x 21 = 6,936.30. So 21-days salary is Dh7,000 (rounded up from Dh6,999.30) in gratuity entitlement for each year of service. Multiply this figure for every year of service up to 5 years.

For 30 days calculation for those exceeding 5 years of service

c. 333.30 x 30 = Dh9,999. So 30-days salary is Dh9,999 in gratuity entitlement for each year of service – so long as the total figure does not exceed total salary of two years.

Therefore, regardless of the years spent at a firm, total gratuity in the above example cannot exceed Dh240,000.

Calculations for Unlimited Contract gratuity pay

Less than 1 year of service

Leaving work before completing one (1) year of service means that you are not entitled to any gratuity pay.

Between 1 year and 3 years of service

Employee is entitled to one third (1/3) of the 21-days gratuity pay.

Between 3 years and 5 years of service

Employee is entitled to two thirds (2/3) of the 21-days gratuity pay.

5 or more years of service

Employee is entitled to full 21-days gratuity pay for each year of service.

Calculation example

Basic salary example: Dh10,000

a. 10,000 ÷ 30 = 333.30. Your daily wage is Dh333.30

b. 333.30 x 21 = 6,999.30. So 21-days salary is Dh6,999.30

Of this figure of Dh6,999.30, only 1/3 is payable if you have worked between 1 and 3 years, so the total gratuity pay would be Dh2,333.10.

Only 2/3 is payable if you have worked between 3 and 5 years, so the total gratuity pay would be Dh4,666.20.

The full Dh6,999.30 is payable if you have completed 5 years.

These calculations are not to be treated as law, they are for your reference only. For any disputes or further clarification, contact the UAE Ministry of Human Resources and Emiratisation.

Formula

1. Basic salary ÷ 30 = Daily wage

2. Daily wage x 21 = 1 year gratuity figure (Or x30 if applicable)

3. 1 year gratuity figure x years of service = Total gratuity owed

Only continue for Unlimited Contract calculation

4. Total gratuity owed ÷ 3 = One third (1/3) of total gratuity

5. Either take this figure (between 1 and 3 years) or multiply it by two (between 3 and 5 years)

6. For over 5 years, total gratuity owed will be payable.

Source: UAE Ministry of Human Resources and Emiratisation Laws

Disclaimer:
Page is not responsible for any amendments made to the UAE Labour Law. All labour disputes must go through the Ministry of Labour. This article may only be used as a guide.