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UAE labour law end of service gratuity in 2023

uae labour law end of service gratuity

In this article, we will delve into the details of UAE labour law end of service gratuity in 2023, shedding light on the eligibility criteria, calculation methods, and important provisions.

Office of Al Mulla. Whatsapp: Click here. Location: Dubai. Phone: 00971501961291.

UAE labour law end of service gratuity.

Eligibility for Gratuity: End-of-service gratuity applies to expatriate workers in the UAE. These provisions do not cover UAE nationals, as they are entitled to mandatory National pension plans.

For expatriate workers, eligibility for gratuity arises at the end of their service period, whether due to termination or resignation.

According to Article 51 of UAE Labour Law, employees are entitled to a fraction of the year worked provided they have completed more than one year of continuous service.

Basis for Gratuity Calculation.

The basis amount used to calculate gratuity is the employee’s last drawn basic salary. It’s important to note that any outstanding amounts owed to the employer may be deducted from the gratuity paid by the employer before settlement.

Limit on Gratuity.

While end-of-service gratuity is a valuable benefit, it’s important to be aware of the limit on the amount payable during final settlement. According to UAE Labour Law, the gratuity payable to an employee cannot exceed the equivalent of the employee’s total two-year salary.

Accrual of Gratuity.

The calculation of gratuity accrues based on a set number of days for each year of service. Here’s how it works:

  • For the first five years of service, gratuity accrues at a rate of 21 days per year.
  • From the sixth year onwards, gratuity accrues at 30 days per year.

FAQs about UAE labour law end of service gratuity.

Expatriate workers in the UAE are eligible for end of service gratuity, provided they have completed more than one year of continuous service.
End of service gratuity is calculated based on the employee's last drawn basic salary and the number of years served, accruing at 21 days per year for the first five years and 30 days per year from the sixth year onwards.

Conclusion.

End-of-service gratuity is a significant aspect of UAE Labour Law, ensuring expatriate workers are rewarded for their dedication and service.

Understanding the eligibility criteria, basis for calculation, and limits on gratuity is essential for employers and employees.

Suppose you have any questions or concerns regarding end-of-service gratuity or other labour-related matters. In that case, seeking guidance from legal experts like Al Mulla Lawyer & Legal Consultant is advisable.

With his extensive expertise in labour cases in the UAE, they can provide invaluable assistance in safeguarding your rights and ensuring fair treatment in the workplace.

Contact the office of Al Mulla via Whatsapp. Click here. Or visit us at our law firms: Dubai. You can also call us on phone: 00971501961291.

Read about UAE Labour Law Resignation Gratuity Dubai.

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