Written by Dr. Hassan Elhais employment
|December 01, 2014
|6441 views
Employees are eligible for Gratuity at the end of completing a full year of service. This gratuity is calculated as 21 days of salary. Salary in this case excludes any allowances for housing or car etc. and considers the basic salary of the employee.
Both the DIFC Law and the UAE Labour Law No. 8 of 1980 take an almost identical position on the issue of severance pay. The DIFC laws also calculate the gratuity as 21 days of basic salary. The basic salary shall not include any housing or other allowances.
Recently, the UAE government as well as the DIFC have enacted new laws regarding employment and labour, which are strikingly similar in terms of end-of-service payments.
Both the DIFC Law and the UAE Labour Law No. 33 of 2021 take an almost identical position on the issue of severance pay.
As per UAE Labour Law, a foreign worker will be entitled to gratuity if he has completed one year of service.
Under the UAE Labour Law, gratuity will be calculated for 21 days for each year of the first five years of service, and for every succeeding year, it will be calculated for 30 days. Under the DIFC Employment Law as well, gratuity will be paid for 21 days for each year of the first five years, before the commencement date of the Qualifying Scheme. For every subsequent year, it will be calculated for 30 days before the commencement date of the Qualifying Scheme.
Under the UAE labour law as well as the DIFC employment law, the gratuity should not exceed two years’ remuneration.
Under the DIFC Law, Article 63(1), “An employer or an employee may terminate an employee’s employment for cause in circumstances where the conduct of one party warrants termination and where a reasonable employer or employee would have terminated the employment.”
Where employment is terminated by the employer, the gratuity will be calculated up to the termination date, and where the employee terminates the employment, gratuity will be calculated up to the notice period that the employee would have been required to give.
Both the UAE Labour Law and the DIFC law state that gratuity should not exceed the annual wage for two years.
Copyright © of this article is retained by the author and/or other copyright owners. We explicitly grant you permission to download a copy, without any alteration, of this article for personal non-commercial research or study, without prior permission or any charge. This article can be utilized on your website or for marketing, however, we grant you permission to host this article on your website and no other rights. This content should not be altered in any way or sold commercially in any format without prior permission of the copyright holder. During reference of this article, full biographic details entailing the name of the author, his designation, the institute and the publishing date of the article shall be provided.
Your email address will not be published. Required fields are marked *
I owe the success of my case to Dr. Hassan's diligent approach. He remained focused, put me at ease and always went the extra mile. Dr. Hassan tirelessly put my case in the best possible light and I cannot thank him enough. I would highly recommend Dr. Hassan - I am grateful to him from the bottom of my heart.
Dr. Hassan Elhais is among the best legal consultants I have ever worked with. He has an amazing ability to reduce complex issues into a simple concept that non-legal people can understand. He consistently develops innovative litigation strategies that help us to achieve our ultimate legal goals.
...the extraordinary effort that has been exerted by the staff, and we specially thank Dr. Hassan Mohsen Alhais. Wishing your continues success & excellence...
I believe everyone should recognize what a difference Dr. Hassan Elhais work has made to people's lives; and especially to our family's life, because we will remain forever grateful to each and every one of his team.
Dr. Hassan Elhais never fears cases that involve exposure and he always gives me his honest assessment of our chances of success, which is invaluable to me.
He aided us not only in providing legal advice but also in all legal issues that required a long term strategic approach to achieve most favorable and optimum outcomes he provided us with high level of professional service.
Dr. Hassan Elhais is a responsible, reputable counsel who operates to high levels of service.
Dr Hassan Elhais is responsive, thorough and creative with his advice, and is a valued advisor and legal consultant.
Regardless of the complexity of the matter I know Dr. Hassan Elhais will consider not only legal strategy but also business practicalities in providing advice and litigation options.
I recommend Dr. Hassan Elhais to anyone who says 'I'm in legal trouble'. I was extremely satisfied with the high standard of his work. He has always been there when I have needed him and I refer all my clients, family and friends to him/his firm.
Dr. Hassan Elhais was very professional and he listened to my needs. He was very prompt, efficient and always kept me informed. Dr. Hassan Elhais's service was excellent and I would definitely recommend him to friends and colleagues.
Contact Me
As per your query, in the instance, you receive a favorable judgment, the next step is to file for the execution of the judgment in the court.
If you prefer to receive more detailed advice, please feel free to contact us at any time and we would be happy to arrange it for you. Dr. Hassan Elhais