End-of-Service Benefits in the UAE: How Employees Can Ensure Fair Compensation

 End-of-service benefits (gratuity) are a key financial entitlement for employees in the UAE. The UAE Labour Law mandates that employees who complete at least one year of continuous service are eligible for gratuity payments upon resignation or termination. The 2024 amendments have clarified gratuity calculations, ensuring fair compensation for all workers, including part-time employees. Consulting legal consultants in Dubai helps employees claim their full entitlements.

Who Is Eligible for End-of-Service Benefits in the UAE?

Employees qualify for gratuity if they:

  • Have completed at least one year of service.
  • Were employed under a fixed-term contract or unlimited contract.
  • Did not leave the job due to gross misconduct.

How End-of-Service Gratuity Is Calculated in 2024

  1. For employees with 1 to 5 years of service:
    • 21 days' basic salary per year of service.
  2. For employees with more than 5 years of service:
    • 30 days' basic salary per year beyond the first five years.

Example Calculation:

  • Basic Salary: AED 10,000
  • Service Period: 6 years
  • Gratuity for First 5 Years: (10,000 ÷ 30) × 21 × 5 = AED 35,000
  • Gratuity for 6th Year: (10,000 ÷ 30) × 30 × 1 = AED 10,000
  • Total Gratuity Payable: AED 45,000

New Gratuity Rules for Part-Time Employees

  • Part-time workers are now eligible for pro-rated gratuity based on the number of hours worked.
  • Employers must calculate gratuity for part-time employees fairly according to their service duration.

Legal Process for Claiming End-of-Service Benefits

  1. Request gratuity payment from the employer within 14 days of the last working day.
  2. If unpaid, file a complaint with MOHRE through their website or app.
  3. Take legal action in labour court if the employer refuses to comply.

How Legal Consultants in Dubai Assist Employees with Gratuity Claims

  • Filing MOHRE complaints for unpaid benefits.
  • Negotiating with employers to secure full gratuity payments.
  • Representing employees in labour court for compensation.

Understanding end-of-service benefits helps employees plan their financial future and ensures that employers comply with UAE labour laws.

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