In November, the United Arab Emirates amended its labor laws to benefit the private sector. In the private sector, these improvements will make it easier for companies and employees to collaborate.
In the United Arab Emirates, a law will alter several aspects of professional life in 2022. The Employment Law will be repealed in February 2022, and the new Federal Decree-Law No. 47 of 2021 on the Standard General Rules of Work in the United Arab Emirates will take its place (the New Employment Law).
The Minister of Human Resources and Emiratization, Dr. Abdul Rahman Al Awar, indicated that the new law allows employees various alternatives for end-of-service bonuses, such as saving projects. He stated that a second media briefing would be held to discuss the alternative options accessible to staff.
Under the new Employment Law, there is a provision relating to the gratuity calculator Dubai.
end-of-service benefits must be calculated based on an employee’s basic wage, according to Article 11, clause 2 of the New Employment Law. The following are the provisions (as translated):
- 11th Article: After your service, you will be entitled to certain benefits.
- A foreign Employee or Worker who works full-time for (1) one year is eligible for the following end-of-service reward based on the Basic Wage:
- During the first five years of service, twenty-one (21) days are allotted for each year of service.
- Thirty days (30) for each year of service beyond the first.
- If you continue to work for your current employer until the New Employment Law takes effect, the New Employment Law will apply to your employment.
Gratuity calculation at the end of the service
An ex-pat worker in the United Arab Emirates is entitled to an end-of-service gratuity calculator in Dubai when his or her employment in the UAE comes to an end.
- If you work for five years, you will receive 21 calendar days of basic pay for the first five years and 30 calendar days for the next five years. According to the New Law, the gratuity calculator in Dubai should be based on the number of working days at the end of the employment period.
- It’s a big change from the current situation, and we’re not sure if the Ministry of Human Resources and Emiratization will say anything more about it.
- Under present law, there are two types of employment contracts: fixed and unlimited.
- The New Law will require all workers to sign fixed-term employment contracts for a maximum of three years, as mentioned in this article.
Situation under the Old Law
If an employee on an unlimited-term contract leaves within the first five years, their end-of-service gratuity in Dubai is lowered on a sliding scale. For example, if they leave between one and three years of employment, their gratuity is reduced by two-thirds. If they retire between three and five years of work, their gratuity is reduced by one-third. The total gratuity would be payable after five years of service.
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Position in Light of the New Law
The New Law makes no provision for end-of-service gratuity reductions in the case of resignation. It means that retiring employees are entitled to the full end-of-service gratuity payment if they have worked for at least one year.
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