How do I calculate End of Service Gratuity (Severance package)
By mistow_77 - Posted on April 30th, 2009
I have a question regarding End of Service Gratuity. Ann employee of a multinational company worked 3 years abroad, and then moved to Dubai and worked for 2 year here. No she is laid off. Is she entitled for the End of Service Gratuity for the past 5 years? Shouldn't it be for 2 year as this is the only time worked in Dubai.
Can you pls clue me in on this one.
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Ok, let me cite the law here.. as per Article 132 of the UAE Federal Labour Law, and in respect to the end-of-service gratuity: A worker who has completed a period of 1 or more years of continuous service shall be entitled to severance pay on termination of his employment. The days of absence from work without pay shall not be included in calculating the period of service. Severance pay shall be calculated as follows:
Twenty-one days' remuneration for each year of the first five years of service. Thirty days' remuneration for each additional year of service provided that the aggregate amount of severance pay does not exceed two years' remuneration.
thank you, johnniew. That's what I think too but I am told this also applies for years worked for the firm abroad. Taht's why I asked the question - it doesn't seem fair by the UAE law.
when a friend of mine joined a company in Dubai, he was due to be posted immediately to Southeast Asia for a year.
The HR dept themselves advised him to insist on a Dubai-based contract, that is not to accept a contract stipulating he was to be based outside Dubai. The reason: long term benefits.
In the end this guy didn't get posted, so he moved directly to Dubai.
If you work for a multinational, a lot depends on the wording of the ORIGINAL EMPLOYMENT CONTRACT and where is tax being paid.
dear all
Kindly help me how to calculate the gratuity monthly
and if i will pay the ticket monthly from which account should be credit
Regards,