Understanding end-of-service benefits is crucial for employees and employers in the Jebel Ali Free Zone (JAFZA).
This article provides an overview of the JAFZA End of Service Calculator 2025 and our law firm’s legal services.
Contact our expert labor law firm in UAE. Click the WhatsApp icon below.
Table of Contents
JAFZA End of Service Calculator
JAFZA offers an online End of Service Calculator designed to estimate gratuity payments for employees ending their service. To use this tool, employees need to input the following details:
- Employee’s Name.
- Joining Date.
- End Date.
- Basic Salary
While the calculator provides an estimate, the final gratuity amount must be approved by JAFZA’s Labour Affairs section.
Gratuity Calculation Breakdown:
- For the first 5 years of service: Employees are entitled to 21 days of basic salary for each year worked.
- For service beyond 5 years: Employees are entitled to 30 days of basic salary for each additional year worked.
- Maximum gratuity: The total gratuity payment should not exceed two years’ basic salary.
Let’s consider an example:
- Employee’s basic salary: AED 10,000.
- Joining Date: January 1, 2015.
- End Date: January 1, 2022 (7 years of service).
For the first 5 years: 5 years × 21 days × AED 10,000 ÷ 30 = AED 35,000.
For the next 2 years (after 5 years of service): 2 years × 30 days × AED 10,000 ÷ 30 = AED 20,000.
Total gratuity: AED 35,000 + AED 20,000 = AED 55,000.
Since the gratuity should not exceed two years of basic salary: 2 years × AED 10,000 × 30 = AED 60,000.
Therefore, this employee’s gratuity amount would be AED 55,000 (below the maximum limit of AED 60,000).
Read more about Gratuity calculation UAE free zones.
JAFZA Gratuity Rules
JAFZA’s gratuity rules outline employees’ eligibility and payment structure. Below are the key guidelines:
- Eligibility: To be eligible for gratuity payments, an employee must have completed at least one year of continuous service with the company.
- Dismissal or Resignation: Employees dismissed for misconduct or those who resign before completing one year of service are not entitled to any gratuity.
- Gratuity Payment Limit: The total gratuity payment should not exceed two years’ worth of the employee’s basic salary, regardless of the length of service.
JAFZA Settlement Calculator
When an employee concludes their employment at the Jebel Ali Free Zone (JAFZA), a settlement calculation is necessary to determine the final amount due to the employee.
This includes end-of-service benefits, unpaid wages, and any other outstanding dues.
Key Components of JAFZA Settlement Calculation include the following:
JAFZA Gratuity Calculator
As outlined in the JAFZA End of Service Calculator section, employees are entitled to gratuity based on the length of service:
- 21 days of basic salary for each year of service during the first five years.
- 30 days of basic salary for each additional year after five years.
- Maximum gratuity is capped at two years of the employee’s basic salary.
Including Outstanding Wages
The settlement calculation should include all outstanding wages, including any unpaid salary, overtime, or bonuses.
These amounts are added to the final settlement as per the employee’s employment contract and the applicable company policies.
Payment for Unused Leave
Employees who have accrued annual leave but have not taken it are entitled to payment for unused leave days.
This amount is calculated based on the employee’s daily wage, which is typically derived from their basic salary.
Final Settlement Deductions
JAFZA may deduct specific amounts from the final settlement, such as:
- Unpaid loans or advances.
- Penalties for damaged company property.
- Unpaid contributions to social security or pension schemes.
All deductions must be under the contractual agreement and applicable labor laws.
Notice Period Deductions
Suppose an employee leaves the company without completing the required notice period (as per their contract).
In that case, the company may deduct an amount equivalent to the salary for the notice period not served.
Conversely, if the employer terminates the employee without sufficient notice, the employer must pay compensation for the notice period.
Company Property Final Clearance
Before the settlement can be finalized, employees must remove any company property, such as ID cards, keys, equipment, or vehicles.
Failure to return company property can result in deductions from the settlement.
Legal Services for JAFZA End-of-Service Calculations
Our labor lawyer in Dubai specializes in employment law within JAFZA, offering services directly related to end-of-service calculations:
- Employment Contract Review: We ensure contracts comply with JAFZA regulations, clearly outlining end-of-service benefits.
- Gratuity Calculation Assistance: Our experts provide precise calculations of gratuity entitlements, considering the latest laws and individual employment terms.
- Dispute Resolution: We represent clients in disputes over end-of-service benefits, striving for fair settlements in line with JAFZA regulations.
- Legal Compliance Advisory: We advise employers on adhering to JAFZA’s employment laws to prevent potential legal issues related to end-of-service benefits.
FAQs about JAFZA Gratuity Calculation
Understanding and accurately calculating end-of-service benefits in JAFZA is essential for employers and employees.
Utilizing the JAFZA End of Service Calculator provides a helpful estimate, but consulting with legal professionals ensures compliance with current laws and accurate entitlements.
Our law firm is dedicated to providing specialized legal services to navigate these complexities effectively.
Contact our labor 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.
