Question: I will be retiring shortly after working for my employer for 25 years. I understand from having looked at the UAE labour law that I am entitled to 30 days of pay for each year of service.
I am on a basic salary of Dh45,000 ($12,253) per month and I know that allowances are not included. By my calculations, I am owed an end-of-service gratuity of Dh1.12 million, but the company is saying that they only have to pay me Dh1.05 million. Can you clarify who is right in this case?
Can you also confirm when it has to be paid as the company wants to delay making the full payment until the end of October. NC, Dubai
Answer: If an employee has worked for more than one full year but fewer than five years, they are entitled to full end-of-service gratuity payment based on 21 days of basic salary for each year of work.
After five years of service, this increases to 30 days of basic salary for each year thereafter.
NC has confirmed that he started working for the company on October 3, 1998, and that his last day of service will be on September 29 of this year. He has only taken approved annual leave, so there are no unpaid days of absence to be deducted.
It appears that NC has calculated the amount based on 30 days of salary for all of his years of service, but this only applies from the sixth year onwards.
In this case, the employer is correct.
For anyone who has worked for a company for a long time, it is worth noting that there is an...
Nonprofit fraud is in the news a lot these days. Federal investigators in Minnesota prosecuted one of the largest alleged COVID-19 pandemic fraud schemes, in which several nonprofits and individua...