Understanding end-of-service benefits is crucial for both employees and employers in the Jebel Ali Free Zone (JAFZA). This guide provides an in-depth look at the JAFZA gratuity calculator, gratuity rules, and the components involved in final settlement calculations.
For personalized assistance with JAFZA end-of-service calculations, click the WhatsApp icon below.
Table of Contents
JAFZA End of Service Calculator
The JAFZA gratuity calculator is an online tool provided by Dubai Trade to estimate gratuity payments for employees concluding their service. To use this calculator, input the following details:
- Employee’s Name
- Joining Date
- End Date
- Basic Salary.
Note: This calculator provides an estimate. The final gratuity amount is subject to approval by JAFZA’s Labour Affairs section.
Gratuity Calculation Breakdown
The gratuity calculation breakdown is:
- For the first 5 years of service: 21 days of basic salary for each year worked.
- For service beyond 5 years: 30 days of basic salary for each additional year worked.
- Maximum gratuity: The total gratuity payment should not exceed two years’ basic salary.
Example:
- Basic Salary: AED 10,000
- Joining Date: January 1, 2015
- End Date: January 1, 2022 (7 years of service)
Calculation:
- First 5 years: 5 years × 21 days × AED 10,000 ÷ 30 = AED 35,000
- Next 2 years: 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 (AED 60,000), the employee’s gratuity amount would be AED 55,000.
What are the JAFZA Gratuity Rules?
After we explained the details about JAFZA gratuity calculator, you should understand the JAFZA gratuity rules, which are essential for both employers and employees.
Eligibility:
- Employees must complete at least one year of continuous service to be eligible for gratuity payments.
- Employees dismissed for misconduct or those who resign before completing one year of service are not entitled to 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.
Contract Types:
- Both limited and unlimited contracts are recognized in JAFZA.
- The type of contract can affect the gratuity calculation, especially in cases of resignation.
Final Settlement Calculation Components
When an employee concludes their employment in JAFZA, the final settlement includes several components:
1. Gratuity Payment
Calculated as per the gratuity calculator JAFZA, based on the employee’s basic salary and length of service.
2. Outstanding Wages
Includes any unpaid salary, overtime, or bonuses up to the last working day.
3. Payment for Unused Leave
Employees are entitled to payment for any accrued but unused annual leave, calculated based on their daily wage.
4. Deductions
Deductions may include:
- Unpaid loans or advances.
- Penalties for damaged or unreturned company property.
- Unpaid contributions to social security or pension schemes.
All deductions must be in accordance with the employment contract and applicable labor laws.
5. Notice Period Deductions
- If an employee leaves without completing the required notice period, the employer may deduct an amount equivalent to the salary for the notice period not served.
- Conversely, if the employer terminates the employee without sufficient notice, compensation for the notice period must be paid.
6. Company Property Final Clearance
Employees must return all company property (e.g., ID cards, keys, equipment) before the settlement is finalized. Failure to do so can result in deductions from the settlement.
Legal Services for JAFZA End-of-Service Calculations
Our employment lawyers in dubai specialize in employment law within JAFZA, offering services directly related to end-of-service calculations:
- Employment Contract Review: Ensuring contracts comply with JAFZA regulations, clearly outlining end-of-service benefits.
- Gratuity Calculation Assistance: Providing precise calculations of gratuity entitlements, considering the latest laws and individual employment terms.
- Dispute Resolution: Representing clients in disputes over end-of-service benefits, striving for fair settlements in line with JAFZA regulations.
- Legal Compliance Advisory: Advising employers on adhering to JAFZA’s employment laws to prevent potential legal issues related to end-of-service benefits.
To engage our legal services for your JAFZA end-of-service needs, please click the WhatsApp button located at the bottom of the screen.
FAQs about JAFZA Gratuity Calculation
Navigating end-of-service benefits in JAFZA requires a clear understanding of gratuity rules and accurate calculations. Utilizing tools like the JAFZA gratuity calculator and seeking expert legal advice ensures compliance and fairness in the final settlement process.
For expert legal assistance in your JAFZA end-of-service matters, please click the WhatsApp button located at the bottom of the screen to connect with our distinguished legal team.
Read more about Jafza Employment Rules and Regulations.
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.
