What Comprises End of Service Benefits In The UAE

Emirates HR

Our current uncertain times are presenting individuals across the world with difficult situations. There is a lot of uncertainty about jobs that are out of people’s hands, but one particular detail they need to be well educated about is what theirs by right come termination time. End of Service Benefits EoSB for employees, especially for those who have worked in the same company for several years, is one small way to make those leaving their work feel fully appreciated. 

Under UAE regulation, this defined payment also known as Gratuity Pay is delivered by the employer through a payroll software upon termination of any employment longer than a year. It is solely based on the employee’s last paid wages and does not include the likes of housing, conveyance, utilities, furniture to name just a few. Knowing how the total sum is calculated will keep you on your toes about any errors.

Once you are given a termination notice, you need to find out if you are eligible for receiving gratuity benefits. Now keep in mind this will depend on the details of your employment contract. 

If you were hired under a limited contract and have spent at least one year in continuous service, you are entitled to full gratuity pay based on 21 days’ of salary for each year of work. If you were at the company for more than five years, then you should be receiving full gratuity of 30 days’ salary for each year of work following the first five years. 

If you are under the unlimited contract, it means there is no expiry date, giving employees the freedom and right to resign with just one a one-month written notice. If your employer lets you go and you have worked at the company for more than a year but less than five, you are required to be paid 21 calendar days’ basic salary for each year of the first five years you’ve been there. If you have been an employee there for more than five years, you can claim up to 30 calendar days’ basic salary for each additional year as long as it doesn’t exceed two year’s worth of compensation through the HR payroll software. These rules change a little if you end up resigning due to any valid reason. In this event, if you have been an employee for 1-3 years, you can claim seven days‘ basic salary; for 3-5 years 14 days’ basic salary and for more than five years the full 21 days’ basic salary. 

There are exceptions where employees are not able to claim gratuity pay. One of them, as previously mentioned, is leaving work before completing one year of service. Another is if you are dismissed from your job due to reasons such as failure to perform basic duties or committing a crime. Also, if you end up resigning without notice (except when the employer breaches the contract or if you are under assault) you are actively giving up the benefit of gratuity pay.

Now that you’ve educated yourselves with the tales of EoSB, you are fully equipped to deal with any discrepancies come claim time. In most cases, ex-employers are sure to act fair and deliver what is due in good time, however, there will always be those rare cases where some refuse to pay. In such instances, your best move forward will be to immediately file a complaint at the Labour Office and hire some sound legal counsel to deal with the dispute. For the most part, if you’ve given your fair due at your place of employment, you are sure to receive full appreciation in the form of agreeable End of Service Benefits through your company’s HR and payroll management solution.