What happens when your employment contract ends? This article provides an in-depth look at the after termination benefits in UAE 2024, including finish contract benefits and benefits after Illegal termination of employment in UAE.
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Table of Contents
Rules of After Termination Benefits in UAE
For foreign workers, the benefits after termination are outlined in Article 51 of the UAE Labour Law. Some of the highlights include:
- Employees are entitled to a gratuity for each year of service, provided they have served for at least one continuous year.
- The gratuity is calculated based on the last basic salary of the employee, excluding allowances.
- Employers can deduct any money owed to them from the employee’s gratuity.
- All benefits must be paid within 14 days of the contract’s end.
Calculating Gratuity Pay amounts
Gratuity pay is a significant component of the benefits after the end of employment in UAE. The amount varies depending on the length of service:
- Employees who have served less than a year are not entitled to any gratuity pay.
- Employees receive full gratuity pay for service between one to five years based on 21 days’ yearly salary.
- For service beyond five years, the gratuity increases to 30 days’ salary for each year following the first five years.
However, the total gratuity should not exceed two years’ wages.
The service period calculation does not include days of absence from work without pay, so these days do not count toward the gratuity analysis.
Any money the employee owes to the employer can be deducted from the gratuity. This includes any loans or financial obligations the employee may have taken from the employer during their term of service.
The payment of all benefits, including the gratuity, should be made within 14 days from the end of the contract. This is a strict deadline that employers must adhere to, as per the UAE Labour Law.
Benefits After Termination of Employment Illegally in UAE
In the UAE, illegal termination occurs when an employer dismisses an employee without just cause or in retaliation for protected actions, such as filing a complaint. Employees in this situation have access to several after termination benefits in UAE to protect their rights.
Compensation for Unlawful Dismissal
Employees terminated without legal justification are entitled to compensation, up to three months’ total salary. The amount depends on factors such as the length of service and the dismissal circumstances, especially if the termination was discriminatory or retaliatory.
Compensation for Relocation Expenses
Illegal termination may entitle expatriate employees to reimbursement for costs like relocation or repatriation.
If sudden job loss necessitates leaving the UAE, courts may hold the employer accountable for covering reasonable expenses associated with returning to the employee’s home country or finding new employment.
Continued Health Insurance Coverage
In wrongful dismissal cases, the employer may be required to temporarily extend health insurance benefits. This can provide the employee and their dependents with health coverage during the transition period while they secure new employment.
Possibility of Reinstatement
Though rare, reinstatement may be an option in severe cases where the court finds the dismissal particularly unjust. This outcome is usually reserved for cases where the employer agrees to correct the situation, though compensation is more common.
Practical Steps for Employees Facing Illegal Termination
- File a Complaint Swiftly: Employees suspecting wrongful dismissal should quickly report to the Ministry of Human Resources and Emiratisation (MOHRE).
- Document Everything: Keep records of employment contracts, termination notices, and related complaints or legal actions.
- Seek Legal Advice: A legal expert specializing in UAE labor law can help employees understand their options and strengthen their case.
- Prepare for Court if Necessary: If mediation fails, the case may go to labor court, where documentation and legal support are key for success.
These measures help ensure fair treatment and protection for employees facing unjust termination in the UAE in 2024, providing practical recourse for those affected.
We recommend you read about terminating an employee on workers compensation UAE Dubai and learn about the termination pay contract ending.
Legal Services for Termination Benefits in UAE
Our experienced legal team specializes in comprehensive services focused on securing and optimizing employee benefits following termination in the UAE. With in-depth knowledge of UAE labor law, we offer expert guidance and representation tailored to the unique challenges of post-employment entitlements.
Our Services Include:
- Advisory on End-of-Service Benefits: Guiding calculating gratuity, leave pay, and other entitlements per UAE law.
- Representation in Wrongful Termination Claims: Assisting employees in unlawful termination cases, including claims for arbitrary dismissal compensation.
- Negotiation of Settlement Packages: Representing clients in settlement discussions to ensure fair compensation for end-of-service benefits and other due entitlements.
- Handling Labor Disputes and Litigation: Representing clients in MOHRE disputes and labor court cases related to unpaid gratuity, end-of-service dues, and unlawful deductions.
- Relocation and Repatriation Compensation Claims: Assisting expatriates with claims for relocation costs when termination requires sudden repatriation.
- Appeals and Reinstatement Proceedings: Representing clients in appeals for reinstatement or enhanced compensation in severe cases of unjust termination.
- Legal Consultation for Health Insurance Continuation: Advising on post-termination health insurance coverage options and entitlements.
Our firm’s expertise ensures that every client receives professional support in navigating the complexities of UAE termination benefits law, protecting their rights, and effectively securing their entitlements.
FAQs about Benefits After Employment Ending in UAE
Conclusion.
Understanding your rights and obligations as an employee is crucial to ensure that you receive the correct after termination benefits in UAE.
Whether a UAE national or a foreign worker, familiarizing yourself with the UAE Labour Law can help safeguard your interests.
For further information, seek advice from experienced labor lawyers like our law firm.
Contact our law firm in UAE for expert help. Click the Whatsapp icon below.
A legal consultant specializing in UAE labor law. He regularly publishes articles on the website and writes on various areas of UAE law, with a specific focus on labor law.