This article will address the new end-of-service benefits in UAE and final settlement formalities and answer the question: Can I ask my employer for a settlement agreement?
The UAE’s updated employment legislation with Federal Decree-Law no. 33 brought about changes in significant employment aspects, including end-of-service benefits, final settlement, and employment contracts.
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Can I ask my employer for a settlement agreement?
Employees can request a settlement agreement from their employer, which is a legally binding document outlining the terms of an agreement between an employer and an employee regarding the termination of employment.
It usually involves payment to the employee in exchange for their agreement not to bring any legal claims against the employer. However, it is advisable for employees to consult a labor lawyer before signing any settlement agreement.
End of Service Benefits.
End of Service Benefits is a crucial employee right that the new labor law mandates employers to provide national and foreign full-time employees with benefits at the end of their service.
Foreign employees should receive 21 days’ wages for every year up to the first five years and 30 days’ wages for each succeeding year. Employers must also provide benefits to employees working in different work patterns apart from full-time employees.
Final Settlement is the procedure for calculating all payable dues for employees who retire, resign, or are fired by the company.
Employers are required to provide employees with all payable dues, including benefits and final settlements, within 14 days after the employee’s contract has ended.
The payable dues may include the remaining salary, extra pay, tax deduction, or any other type of deduction.
FAQs about whether can I ask my employer for a settlement agreement.
The new UAE labour law emphasizes the importance of providing benefits to employees at the end of their service, regardless of their nationality or work pattern.
Employees can request a settlement agreement from their employer, but it is crucial to seek legal advice before signing any such contract.
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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.