Gratuity Calculation UAE Labour Law under Limited Contract

Gratuity calculation-Limited Contract

Article 138 as per UAE labour law:

Where a worker under a definite term contract abandons his employment at his own initiative before the expiry of his contract period, he shall not be entitled to severance pay unless his continuous period of service exceeds five years.

I have constructed various scenarios below.

Scenario 1:

If an employee employed for less than a year under limited contract and abandons his employment contract period he/she shall not be entitled for any gratuity amount.

Scenario 2:

If an employee employed for more than a year but less than five years under limited contract and complete his contract period he/she will be entitled for 21 days of Basic salary per year of service.

Example:

Joining date 1-1-2008

End date 30-12-2012

Basic Salary 5,000/- per month

Basic Salary per day =Basic SalaryX12/365=164.38

Total no of days worked=Joining Date-End Date=1826

Total no of years worked=Total no of days worked/365=5

21 days’ Basic Salary=Basic Salary per dayX21 days=3452.05

Gratuity Amount=Total no of years worked*21 days’ Basic Salary=17,269.73

Scenario 3:

If an employee employed for more than five years under limited contract and he/she will be entitled for 21 days for each year up to 5 years, and 30 days for each year after 5 years)

Joining date 1-1-2008

End date 31-12-2013

Basic Salary 5,000/- per month

Basic Salary per day =Basic SalaryX12/365=164.38

Total no of days worked=Joining Date-End Date=2192

Total no of years worked=Total no of days worked/365=6.01

21 days’ Basic Salary=Basic Salary per dayX21 days=3452.05

Gratuity Amount=Total no of years worked*21 days’ Basic Salary=22,241.00

All above amounts are approximate

Disclaimer:The above Gratuity calculation UAE LABOUR LAW is ot be as a quidance and is not be taken as final calculation. The UAE Labour Law is dynamic and subject to change. Please take care while calculation by contacting the Ministry of Labour. I am in no way responsible for your actions. The calculation is for personal use and comfort.

141 Responses to “Gratuity Calculation UAE Labour Law under Limited Contract”

  1. abdul ajees

    Sep 28. 2014

    Hi sir,

    I am ajees currently employed in Abudhabi.I have completed my first limited contract from 23rd April 2012 to 23d april 2014.Then i have renewed my contract with the same employer for further 2 years.Recently i got the job in Dubai and i have gave the resignation to my employer and even Our employer CEO and plant manager accepted the resignation(mutually agreed).But they informed me today that they will not pay me end of gratuity for both the contracts.

    As per the article 113 the employee can terminate the contract with mutually agreement it means that i don’t want to pay the employer 3 month half wages if it is mutually agreed for termination.

    And also they should pay me the end of gratuity for the first contract of 2 years.

    please reply me.

    Reply to this comment
  2. Maricris

    Sep 28. 2014

    Hi Deepak,

    I have been working in a company for 1 year and 1 month. My contract is limited and will finish on August of 2015.
    I have been offered a new contract in another company.
    Will I have to get any gratuity from my company?
    Should I pay them, if yes is it 1 month basic salary or the whole salary I am getting.
    Thank you

    Reply to this comment
  3. myrene

    Sep 24. 2014

    Dear Mr deepak,

    Thanks for your help to everyone,
    Now I have also a question, I already 7 years and half to my company as limited contract
    Joined on January 02 2007
    end on January 02 2015,
    Now I already resign to the company my last day on 1st of October, as 1 month notice
    Do I need to pay the 45 days notice
    Do I have labour ban or not
    how the calculation of my salary, my salary is 5000aed and basic is 4000 aed,
    if unlimited contract also do you get ban after 6 years

    thanks a lot

    Thanks Mr deepak I hope you can help me

    Reply to this comment
  4. Yassir

    Sep 14. 2014

    I think the law has changed on 1st of Sep, can you please comment on the following:

    http://www.emirates247.com/news/emirates/3-months-pay-for-unfair-dismissal-dubai-court-2014-09-01-1.561346

    Many Thanks
    Yassir

    Reply to this comment
  5. viva

    Sep 08. 2014

    Hi Sir Deepak, I am resigning under unlimited contract after 1 year with basic pay of 7000 (sept. 2013 start of unlimited contract). Prior to unlimited contract I joined the company last september 2011 under limited contract for 2 years with a basic of 5000. I just want to ask how will my gratuity be calculated since I have finished 2 years limited contract sept 2011 to sept 2013 then unlimited contract started last sept. 2013 as well. Which basic pay will be the basis of computation in this scenario. thanks!

    Reply to this comment
    • Deepak Machado

      Sep 08. 2014

      since there are two types of contracts I have no idea how is your company going to compute your settlement.
      Gratuity should be computed on last drawn basic salary.

      Reply to this comment
  6. Alicia Remoto

    Sep 07. 2014

    Hi , Mr. Deepak. Im Alicia just to want ask you if im going to resign right now in the company my contract is LIMITED.
    Date of join: April 1,2013
    Date of end of contract April 1,2015
    Date of resignation: Sept 1,2014
    Do i need to pay 45 days to my employer?They can pay annual leave? bec in our contract it was stated their after completion of one year we can have one month paid salary.

    Reply to this comment
    • Deepak Machado

      Sep 08. 2014

      if it is a limited contract you will not be entitled for any benefits. Yes you may have to pay 45 days notice to the employer

      Reply to this comment
  7. Jedda

    Sep 03. 2014

    i just want to ask if the air ticket for exit upon employment is payable by the employer or the employee, and if it can be deducted during termination. thanks

    Reply to this comment
    • Deepak Machado

      Sep 04. 2014

      Upon termination employer should pay one way air ticket.

      Reply to this comment
    • Deepak Machado

      Sep 07. 2014

      If termination company should provide air ticket but if resignation employees should bear the ticket.

      Reply to this comment
  8. Prakash Chauhan

    Aug 30. 2014

    Helli Sir,

    My name is Prakash Chauhan i am working in Essar Group of construction company. My joining date : 20-09-2013. company given a 02 years contract. my company says this project in loss & company give me demobilization from my service 19-09-2014. so i m in confuse i m eligible for gratuity, leave ,overtime etc benefit.

    Reply to this comment
    • Deepak Machado

      Sep 01. 2014

      Since you have not completed one year i dont think you are enttitled for any gratuity. However it willbe depend on company wish.

      Reply to this comment
  9. Ayoob

    Aug 28. 2014

    Hi Deepak,

    I am totally confused when I read all the comments regarding this Gratuity, I have been working here in Dubai from June, 2013, in limited contract for 2 Year, Now I am going resign and my Last day will be September 30, 2014, So I finished here 1 year and 4 months, am I eligible for Gratuity.

    Thanks.

    Reply to this comment
    • Deepak Machado

      Aug 31. 2014

      No you won’t be entitled for any gratuity . Since it is a limited contract you need complete the contract period

      Reply to this comment
  10. Arun

    Aug 20. 2014

    Dear Deepak
    I worked for a LLC company in Dubai from April 2012 to Dec 2013 with a unlimited contract for a salary of 6000aed.Actually the salary promised verbally was 6000 + allowances. But I got stuck in this company because of my friend who was a manager in this company.He himself signed my labour contract by forgery of my sign on the contract.But I did’nt complain at that time because of job security.I went on vacation from Dec 2013 to March 2014.When I returned I was not paid any leave salary or gratuity for the period of 2 years because the company was on loss.Now since Jan 2014 our company got marged with another shipping company in Dubai.Our office got shifted to new posh location. My. manager friend told me that all the old dues would be settled soon.My visa got renewed for next same period without my sign on the labour contract in June.When I checked my e- contract at Tasheel office,I got a contract renewed with the same old forged signature of mine.Now I have resigned by giving 1 month notice.But they have not yet cancelled my visa and not settled my dues.In my case what you would advice please.

    Reply to this comment
  11. Fareed Bin Basheer

    Aug 15. 2014

    Dear Deepak,

    Could you explain more about the gratuity calculation for a Limited Contract .

    For Example Labour law saying that the employee should be completed 5 years of service ( Article 137 ) in order to get the gratuity , but how to get a garuity for an employee who have only 2 years of limited contract ?

    Reply to this comment
    • Deepak Machado

      Sep 07. 2014

      if he has completed 2 years of contract he will be entitled for gratuity.

      Reply to this comment
  12. shanu

    Aug 04. 2014

    Dear Mr.Deepak..

    I have been working in the same company since august 2007 and it is limited contract and basic salary aed 2000 mentioned on my contract, but now I am taking 5000 every month, So how will calculate gratuity with contract or latest withdrawal because there was no basic and allowance and I dont know how to calculate basic..Pls advice me

    Reply to this comment
    • [email protected]

      Aug 09. 2014

      I am riyaz
      I have benn completed 5 year limited contract.
      I given 60 days notice period.
      let me know my gratuitu calculation i am eligible 30 days gratuity per year or how many

      Reply to this comment
    • Deepak Machado

      Aug 10. 2014

      The gratuity shall be calculated on the basis of your last drawn basic salary

      Reply to this comment
  13. John

    Aug 02. 2014

    Hello Deepak, thank you for all your posts. Can you tell me if I am eligible for gratuity as my company is giving me Demobilisation. I have joined in Oct 2013 and I will receive the Demob by Sept 2014. As you can see my service period will be 11 months. So my question is am I eligible for the gratuity as the company is giving me demobilisation.

    Reply to this comment
  14. rana ali

    Jul 22. 2014

    hi sir
    i want to ask you that my company is going to terminate my limited contract my service period is 1 year and 6 months..
    Is there any benefit for me?
    because i heard from friends that if they cancel me without any notice they have to pay me three advance salaries is it right please guide what i have to do

    thanks

    Reply to this comment
  15. roselle jugar

    Jul 17. 2014

    hi sir deepak i would like to inquire my visa will expired on august 17 2014 i joined on my company last july 13 2009 my basic salary is 1000 and my contract is limited. can ask for computation. and it is possible to ask for my employer that i will just end my contract and
    request to cancel my visa so i can exit and have a tourist visa?

    Reply to this comment
    • Deepak Machado

      Aug 02. 2014

      You will be entitled for 21days basic salary every year of service

      Reply to this comment
  16. JOhn

    Jul 03. 2014

    I am working under limited contract. I did not complete 1 year of service, but more than 6 months, am i entitled for gratuity

    Reply to this comment
    • Deepak Machado

      Jul 09. 2014

      no you are not entitled for any gratuity as you have not completed one year in the company

      Reply to this comment
  17. Mary grace menas

    Jun 03. 2014

    Hi sir deepak, i’d like to ask about my ban how I will remove or unleash coz my company is closed coz my boss he sell it to the other company but now the new company they absorb us how will I manage my ban to remove?

    Reply to this comment
  18. bea bianca

    Jun 01. 2014

    hi,
    im bea a limited contract im more than 5 yrs in the company i joined sep 2008 i just renewed my visa last oct my 2nd renewal,so to be exact im 5 years and 6months to be exact and im planning to resign this month do iam entitled to have a graduity?im really confuse pls rep.thanks a lot

    Reply to this comment
    • Deepak Machado

      Jun 10. 2014

      since u hv completed more than five years you may be entitled for gratuity

      Reply to this comment
  19. Hamza

    May 16. 2014

    Hi Deepak:

    I am on an unlimited contact and resigned after 8 months as I recieved a better offer.

    1) Am I entitled to end of service compensation?
    2) Is automatic bans are lifted if the basic salary is 12000 AED or the gross salary (basic+allowances)?

    Thank you.

    Reply to this comment
  20. elena

    May 09. 2014

    My contract is only 2 years and I’m already finish yesterday (may 8 2014) my basic salary is 1500 and my salary is 2000 I have no leave or vacation.maybe how much my gratuity? :) thank u

    Reply to this comment
  21. Ananya

    May 06. 2014

    Hi Mr. Deepak,

    I was working in an institition from Feb 2010 under unlimited contract . In 2013 feb they have changed my contract to limited one. Now if they are terminating me am I eligible for 4 years gratuity ? shall I claim three months salary for limited contract termination ?

    Reply to this comment
    • Deepak M

      May 07. 2014

      Yes you are entitled for gratuity from the day you received the salary

      Reply to this comment
  22. Sharon rose pacificar

    May 06. 2014

    Hi deepak.i want to ask only Bcoz my contract is limited and I’m working almost 9 mos already..I’m planning to resign if I can find a free zone company..my question is if I resign I nid to pay to the company for my visa?

    Reply to this comment
  23. jhun Cordoviz

    Apr 20. 2014

    hi sir Deepak im little confused calculating my gratuity i started april 24,2012 and my contract will end this coming april 24,2014 and my basic salary is 1000 aed only.. pls send me the answer thanks.

    Reply to this comment
  24. Shamshad

    Apr 14. 2014

    Hai Deepak ,

    My contract is Limited and i have completed 5 years and 4 months in the same company .

    My joining date : Dec 2008

    1 – Am i eligible to get the Gratuity ? My basic salary is 2260 AED

    2 – I would like to resign my company . So my main doubt is regarding the notice period i have to give. is it 30 days or 90 days.

    3 – should i have to give any penalties to the company , like 45 days salary . If so 45 days basic salary or whole salary ?

    4- I heard that after continuous 5 years, the limited contract will automatically become unlimited. is it true ?

    Kindly clarify my doubts, thanks in advance

    Read more: http://emiratesdiary.com/job-tips/gratuity-calculation-uae-labour-law-under-limited-contract#ixzz2yqkjV4vU

    Reply to this comment
    • Deepak M

      Apr 14. 2014

      1. Yes you are eligible for gratuity
      2. You need to give notice as per your contract terms
      3. I dont think you need to pay 45 days salary. If yes 45 days gross salary
      4. better to go through abour Law

      Reply to this comment
  25. Deepu

    Apr 08. 2014

    Dear Deepak”
    My contract was Limited contract (3 years)
    My joining date : Jan 2010
    My renewal : Jan 2013
    want to resign: April 2014
    Basic salary as of now : AED 10,400/-

    Did I eligible to get the Grautity.

    I heard that after continous 4 years the limited contract automatically become unlimited. is it true.

    Reply to this comment
  26. Deepu

    Apr 08. 2014

    Dear Deepak,
    I strated my limited contract for 3 years from Dec 2009 and renewed the contract on Dec 2012 . Kindly tell wheather i am eligible for any gratuity if i resign 2014 April. I heard that after 4 years the limited contract will automatically changed to Unlimited . My basic salary as of now is AED.10,400/-. if i get the gratuity , how much i will get.
    Thanks

    Reply to this comment
    • Deepak M

      Apr 14. 2014

      since it is a limited contract you need to complete the contract period to have your gratuity entitlement.

      Reply to this comment
  27. lhen

    Apr 05. 2014

    hi deepak i want to ask i give my non renewal letter last march 31 2014. my limited contract finished on april 7 2014. my company said to me i need to stay 30 dyas period it is right or no.

    Reply to this comment
    • Deepak M

      Apr 06. 2014

      You should have give atleast 45 days notice or notice as per your contract about your non renewal of agreement. In this case your company may be right.

      Reply to this comment
  28. Chy

    Mar 31. 2014

    Hi sir.. Currently i am working with unlimited contract and now they want to change it with limited contract because its now partnership with uae national and other national.. I already served 1 yr on unli contract and if i sign the contract it will be another 2 yrs for me. In computation of gratuity, will it be for 3 yrs if i finish the contract or 2 yrs only? And is it possible if i dont want to sign for limited contract and just finish my unlimited contract because they are insisting us to sign for limited one. Thank you so much.

    Reply to this comment
    • Deepak M

      Apr 01. 2014

      it depends on company policy. Normally in limited contract to be eligible for gratuity you need to complete the contract period . If not you wont entitled for gratuity.

      Reply to this comment
  29. Renu

    Mar 16. 2014

    hi deepak ,
    i m renu ..i have joined on 9 th july 2011 and this contract for 2 years and i have renewed again my contract and it will be finish on aug 2015 and previous & new conrtact both are limited contract. so i want to know if i will resign in aug 2014 then can i get any gratuity or not..beoz in aug 2014 i have finished 3years ..and my basic salary is 2700..so please tell will i able to get any gratuity???and how much ?

    Reply to this comment
    • Deepak M

      Mar 17. 2014

      If its a limited contract you want to terminate before the expiry you may not entitled for any gratuity

      Reply to this comment
      • Renu

        Mar 18. 2014

        but deepak .. i have finish my first contract and now contract is renewed…and it will finish in aug 2015
        f i resign aug 14 then can i get gratuity????

        Reply to this comment
        • Deepak M

          Mar 19. 2014

          if it is a limited contract you need to complete the contract period to get your gratuity.

          Reply to this comment
  30. Name (required)

    Mar 05. 2014

    Hello, My contract is limited and going to finish

    on May 08, 20013. In almost two years i did not take vacation

    but i wish to take vacation this March 15, 2004 it is entitled

    to complete two years. And can i received gratuity for my employer.

    Kindly give your opinion.

    Thanks,

    NIMFA

    Reply to this comment
  31. Ahmed

    Feb 26. 2014

    Hi Deepak,

    I finished my two years first limited term contract in May 2013 and HR informed there is going to be no more limited contract rather the same contract will be considered as unlimited as company has changed its HR policy to have all new and renewed labor contracts on unlimited basis. I have some communication and minutes of meeting with HR on this. I got my medical done in May and HR confirmed that my contract is renewed (unlimited). I resigned in October 2013 with one month notice and upon company’s request i extended my notice period for three months upto end January. HR sent me final settlement details with 21days x 2 salary for first two years limited contract plus 4.6days the additional (unlimited period) on pro rata basis (7days gratuity for first year of unlimited contract. Now when the call me for final payment, they made the check excluding gratuity and upon inquiring, they told me i do not have gratuity entitlement as i was still on a limited contract and they provided me with a copy of my old labor contract with an e-signautre on it saying this contract is renewed for period as per labor card which was issued for two years upto 2015. I do understand that in case of breaching second limited contract i dont have any gratuity entitlement but what if HR mislead me. Additionally all the new contracts company issued since start of 2013 are unlimited only. Now HR manager who managed this has already left company and company want to go per labor law. Please advise if i have a chance of any entitlement?

    Reply to this comment
    • Deepak M

      Mar 02. 2014

      if you have an unlimited contract with you you can go to labour and address this particular issue.

      Reply to this comment
  32. Adrian Delgado

    Feb 25. 2014

    hello deepak. My contract is limited, my joining date is februar 7 2009 and my contract will be finished this march 16 2014, my basic salary is 2000 how much will i get? thanks.

    Reply to this comment
  33. John

    Feb 24. 2014

    Hi Deepak its me again! want to ask you one more thing coz I red 1 blog and made me confused. He said those in limited contract have to finish 5yrs more to be able to get his/her gratuity. Because in my case I finished 3 years and renewed for another 2 years. I regret if
    I dont receive anything after 5 years of service. Please enlighten me. Thanks!

    Reply to this comment
    • Deepak M

      Feb 24. 2014

      If you finish your limited contract for sure you will be entitled for gratuity. Only thing you need to complete the contract period.

      Reply to this comment
  34. Shameem MK

    Feb 18. 2014

    Hi Deepak! just want to make things clear. I got 3 yrs limited contract and finished of it in Sep 2013. Then I renew for another 2 yrs and will be finish this Sep -2015. Now the question is If I resign before finishing second contract , what is the calculation for my gratuity and other penalties.
    Thank you ..

    Reply to this comment
    • Deepak M

      Feb 19. 2014

      If it is a limited contract you need to complete the contract period to get the benefits

      Reply to this comment
    • Allan G.

      Feb 21. 2014

      Hi there! I am also under a 3 years limited contract. I joined the company last Sept. 9, 2009 and finished the contract last Sept 2013. I renewed for another 2 years and will finish on Sept 2014. I am planning to resign on April 9, 2014 (5 months earlier than my contract). Am i entitled to receive the gratuity? If, yes, how will it be computed?

      Reply to this comment
      • Deepak M

        Feb 23. 2014

        If you are not completing your contracts you may not receive your gratuity amount. Moreover company may ask you to pay 45 days compensation since it is a limited contract.

        Reply to this comment
  35. John

    Feb 18. 2014

    Hi Deepak! just want to make things clear. I got 3 yrs limited contract and finished of it in October 2012. Then I renew for another 2 yrs and will be finish this October. Now the question is If I resign will I get the first 3yrs gratuity? Thanks!

    Reply to this comment
    • Deepak M

      Feb 19. 2014

      Yes gratuity must be calculated from the date of joining.

      Reply to this comment
      • Allan G.

        Feb 21. 2014

        Hi there! I am also under a 3 years limited contract. I joined the company last Sept. 9, 2009 and finished the contract last Sept 2013. I renewed for another 2 years and will finish on Sept 2014. I am planning to resign on April 9, 2014 (5 months earlier than my contract). Am i entitled to receive the gratuity? If, yes, how will it be computed?

        Reply to this comment
  36. Violeta

    Feb 11. 2014

    Hi Deepak! My visa was in freezone limited company. Started working April 2008 and will end on the 6th year – March 2014.

    Can you please give me an idea more or less how much will be my EoSB?

    Thanks so much!

    Reply to this comment
  37. Janish

    Feb 06. 2014

    hi,
    my friend is working under limited contract and he is going to complete five years (his first contract was 3 yrs and 2nd is for two yrs) in this month as per the labor contract but in between he has 3 months unpaid leave. can he get gratuity if he resigned this month? can you please explain the terms?

    Reply to this comment
    • Deepak M

      Feb 11. 2014

      If he is completing his contract period then he is entitled for gratuity. But the unpaid leaves will not be taken into account while calculating gratuity.

      Reply to this comment
      • John

        Feb 18. 2014

        Hi Deepak! just want to make things clear. I got 3 yrs limited contract and finished of it in October 2012. Then I renew for another 2 yrs and will be finish this October. Now the question is If I resign will I get the first 3yrs gratuity? Thanks!

        Reply to this comment
  38. Kristi

    Feb 05. 2014

    Hello. I’m asking for some advice, I’m under a limited contract, I informed my employer that I won’t be renewing my contract and gave my 1 month notice last jan4. My contract is finished already last February 1,2014. My problem is they will not release me. They told me I need to finish my residence visa or stay more than that until they find my replacement. My residence visa will expire February 13. I already found another job and they are waiting for me already.. I really need help. Thank u

    Reply to this comment
  39. Jacklyn

    Feb 04. 2014

    Hello deepak,

    sorry to bother you, please help me, i just want to ask im about to resign with 1 yr and 5 months will i have a gratuity?

    but i dont know if im limited or unlimited contract, in my contract there is comencement date and expiry date, but according to my colleuege our contract is unlimited because according to them its continious until we said to stop it.
    please help me

    Reply to this comment
  40. Sharon

    Feb 03. 2014

    Hi deepak,I’m Sharon.my contract is limited and I finished already my 6 months probation..I want to ask if I will find another job and it’s free zone still I nid to pay to my company and how much?

    Reply to this comment
    • Deepak M

      Feb 04. 2014

      Yes you may have to pay but it would be depend on your terms of your employment contract .

      Reply to this comment
  41. Lilibeth Romero

    Jan 28. 2014

    I had a 4-year limited contract from August 2010-2014. That time a residence visa is good for 3 years. So, on September 2013, they applied for my visa renewal, but they also changed my contract into unlimited contract. My question is: If I will just only finish my 4year contract from August 2010 – September 2014, how will be my gratuity computed, as I have to kinds of contract for the 4 year period contract ( August 2010-2013 – limited contract) and (starting September 2013 it becomes unlimited contract). I had a vacation for a month, that is why there is a gap for a month.

    Reply to this comment
    • Deepak M

      Feb 02. 2014

      Company should calculate your gratuity as per UAE Labour Law and terms of your agreement.

      Reply to this comment
  42. jeremy

    Jan 16. 2014

    hello deepak

    I want to know about the situations of my friend she is under limited contract and working for exactly 4 years and 1 month in the company and she resigned because our manager is abusing her and according to our manager she will not get any single amount of graduity and she must pay additional one (1) month for her working service in the company also she must pay her plane ticket goin back home.. please we need your advice as soon as possible ..
    is that true that she cannot get any single graduity compensation from the company and she must paid 1 month for here salary..

    Reply to this comment
  43. Ali

    Nov 27. 2013

    helow deepak.. i have two questions my contract is limited i joined company in June 2012 but in my labor contract joining date mention is 10 September 2012 . my two years will complete in June 2014 or September 2014 ? even i don’t have any proof of my first salary receipt which i received in June 2012 ..

    my second question is now i wanted to resign is there any ban if i resigned without completing two years? and how much i have to pay as a penalty to the company ?

    Reply to this comment
  44. Ali

    Nov 27. 2013

    helow deepak.. i have two questions my contract is limited i joined company in June 2012 but in my labor contract joining date mention is 10 September 2012 . my two years will complete in June 2014 or September 2014 ? even i don’t have any proof of my first salary receipt which i received in June 2012 ..

    my second question is now i wanted to resign is there any ban if i resigned without completing two years? and how much i have to pay as a penalty to the company ?
    thanks

    Reply to this comment
    • Deepak M

      Dec 02. 2013

      Your contract end date would be September 2014 as per your labour contract
      Yes if you leave before the expiry then you may get labour ban
      You need to pay 45 days of penalty to the employer

      Reply to this comment
  45. kal

    Nov 24. 2013

    Hey Mr. Deepak,
    I am given an offer on a limited contract but the salary is low so my questions are
    1- what happens if I change jobs while I am on probation period?
    2- what happens if I got a better offer later on? will they impose a 1 year ban? could this ban be lifted? what if they refused to issue NOC?
    I am not having bad intentions towards the employer but it’s really difficult to work for 2 years with that low salary
    I really appreciate you trying to helps others,

    Reply to this comment
    • Deepak M

      Nov 25. 2013

      1. You may have the chances of getting a labour ban
      2. yes it is possible they can impose one ban . No you cannot lift. You need to finish your limited contract

      Reply to this comment
      • GCR

        Jul 08. 2014

        Hi Mr Deepak,
        In reference to your previous reply about 1 year ban possibility for the gentleman, what if the employee is in the category of exempted professions – doctor/engineers?

        Thanks.

        Reply to this comment
  46. Gabriel

    Nov 23. 2013

    hi mr deepak…just want to inquire about my case..i joined my company october 2008 under limited visa.. i just finished my 5years in my company october 2013 and i just renewed my contract last month…I’m planning to resign next year maybe after 6 months…I just want to ask if i need to pay my company because i will not finish my contract this time and how much gratuity i will get for my company..
    i hope i can hear from you soon…thanks so much

    Reply to this comment
    • Deepak M

      Nov 24. 2013

      Since it is a limited contract you may have to pay the penalty. But as you have already completed 5 years in the company better to seek advice from immigration or MOL.

      Reply to this comment
  47. Ann

    Nov 13. 2013

    Hi sir! I am working in my company for almost 3 years now, They renew my contract January 2013 under limited contract. Now i’m planning to resign this month (i will give 1 month notice) last working day will be in December 17. Am I entitled to pay them 45 days? And will I be able to get my annual pay leave even if I resign? Because I am supposed to be entitled to get my annual pay leave this November.

    Reply to this comment
    • Deepak M

      Nov 14. 2013

      Since your contract is limited you may need to pay 45 days salary as compensation. You are entitled for all balanced unutilised leaves.

      Reply to this comment
  48. Austin

    Nov 12. 2013

    Greetings Deepak,

    My contract says- ‘LIMITED’ and starts from 11-08-2008. Basic salary mentioned is AED 2000 on Labour contract. how much will be my Gratuity Amount???
    Thanks and God Bless You.

    Reply to this comment
  49. Victoria

    Nov 11. 2013

    Hi Mr. Deepak, thank you for this site. I just would like to ask if you could give me the computation of my gratuity. I have been in the company for more than seven years. My joining date was March 28, 2006. And my last day with the company was last October 19, 2013. They cancelled my visa without giving my gratuity and giving me hardtime claiming it plus they said they have to deduct 45 days as when they renewed my contract last year, they changed it to limited contract. Please advise if it is legal to deduct 45 days and how much in total should I receive if i was drawing a basic of Dhs.3000. Thank you for your concern

    Reply to this comment
    • Deepak M

      Nov 13. 2013

      Your total gratuity would be almost 17,900 Dhrs
      Yes if the contract is limited company has the right to deduct 45 days salary
      It would be almost 4500 dhrs (45 days salary)

      Reply to this comment
      • Ahamed

        Sep 13. 2014

        Dear Deepak,

        As your calculation it’s cleared it will be deduct 45 days from our basic salary am i right

        Reply to this comment
        • Deepak Machado

          Sep 14. 2014

          In limited contract if you are not completing the contract you are not entitled for any gratuity

          Reply to this comment
  50. kumar

    Nov 11. 2013

    hi deepak , my labour card ends on 25.12.13 , mine is limited contract , i have resigned with notification my last working day will be 25.12.13 , during this two years contarct i have taken only 7 days emegency leave , in this case what will be my settlement , my basic salary is 5500 , waiting for your reply

    Reply to this comment
    • Deepak M

      Nov 12. 2013

      You will be entitled to full gratuity. Plus whatever balanced leave amount.

      Reply to this comment
      • kumar

        Nov 14. 2013

        hii deepak , leave salary will be calculated for 2 months or a month only im my case

        Reply to this comment
        • Deepak M

          Nov 14. 2013

          Company should pay whatever the balanced leave in your account along with your gratuity.(Company should pay whatever the balanced leave in your account along with your gratuity)

          Reply to this comment
  51. Anthony

    Nov 07. 2013

    I’m already working on my company for four years and I’m planning to resigned but my limited contract will be finished Nxt year, am I going to get a gratuity and am I going to have a ban?

    Reply to this comment
    • Deepak M

      Nov 08. 2013

      Yes If your contract is limited and you want to resign Yes you may have the chances of getting ban and same time you may loose your gratuity.

      Reply to this comment
  52. mark

    Oct 30. 2013

    hi sir can you calculate my gratuity ?
    im start 0ct.18,2011-nov.11,1013 my basic is 1300 and i not taking my air ticket for 1year and for 2years can you give the result ? thanks

    Reply to this comment
  53. carlo mahinay

    Oct 28. 2013

    hi deepak,im carlo.i have limited contract and my contract will expired next year oct.my labor card is 1year last oct 22,do i have rights to resign and receive a gratuity?my salary is aed 2,500 but when i claim my salary in the bank i will give back1000 to my boss as he said.what will i do?and when i talk to him i want to resign he wants me to sign in the cancellation letter and when i read it there is written i recieve my money but i didnt recieve any money coming from him so i refuse to sign it and said he will bring me to immigration.What will i do?thank you

    Reply to this comment
    • Deepak M

      Oct 30. 2013

      if you have finished your labour contract you are entitled for a gratuity. Normally you should receive your money before you sign the cancellation paper.

      Reply to this comment
  54. linda

    Oct 27. 2013

    Hi Deepak,

    My first contract was unlimited for 2 yrs and renewed as limited for another 2 yrs. I decided not to renew anymore and so continuously I worked 4 yrs. How shall be my gratuity be calculated? Would that be the recent basic and as limited (21*4), or divided into unlimited for 2 yrs, (7*2) and limited for 2 yrs (21*2)? Thanks for your help.

    Reply to this comment
    • Deepak M

      Oct 28. 2013

      It should be on current basic salary. But no idea how your company calculates since you had two different types of contract with same company.

      Reply to this comment
  55. Sam

    Oct 09. 2013

    Hi Mr. Deepak,

    Please provide me a proper solution on my query.

    I work for a company under TECOM. When I joined my salary mentioned in the contract was AED 5000 (Basic – AED 3000)
    I have completed 1 year and 9 months and due to downsizing (even though I completed my quarterly target) I have been asked to go. My current salary is AED 9000 (Basic – AED 6000) but this is not mentioned in the Employment Contract. Though I have a Salary Certificate signed by the authorised person of the company.

    On what salary would my End of Service benefits be calculated?
    Would I be provided gratuity for an year or the whole 1 year 3 month quota?

    Please respond. Thanks in advance!

    Reply to this comment
  56. Carla

    Oct 03. 2013

    Hi Deepak!I am working. with a limited contract.I just need your help for the calculation for my gratuity.My joining date is november 13 , 2010 and my visa will expire on november 24, 2013.but i already took my cash settlement on my 2nd year.my basic salary is 1560.And I want to know when will be my last day of work?will it be on my labour card date of expiry november 13 or visa expiry november 24.

    Thanks and Regards,
    Carla

    Reply to this comment
  57. marsha

    Oct 03. 2013

    hi deepak,,i worked for 4 yrs and 3 months on my previous company under limited contract..my first contract was 3 yrs and then i renewed for the 2nd contract,.and then i resigned..will i get any gratutity???or will i get a ban for that because i did not finish my 2nd contract??

    Reply to this comment
  58. Shine

    Sep 30. 2013

    Dear Sir,

    My 2 year limited contract is made after one month of my joining. my gratuity will be calculated from date of joining or contract start date, is it mentioned in the uae labour law?
    kindly advice

    Reply to this comment
    • Deepak M

      Oct 01. 2013

      yes as per UAE labour law gratuity shall be calculated from the date of joining ( the date when you start receiving your salary).

      Reply to this comment
  59. k.k.nazar

    Sep 28. 2013

    hi deepak my name is nazar ame working one llc company tottal ten years finish. how can calculate my gratuity my baisic salary 2050 my joining date 11/10/2003 ame work sttoping next october31/2013 ame ollready my resigning letter sub mited pls kindly advise me..

    Reply to this comment
  60. seshu

    Sep 24. 2013

    Hi, Deepak
    I joined in one of the UK based company in abudhabi on Aug 2010 for one year agreement but after 1 year also continued up to august 2013. again visa renewed on august . I resigned on August 29th with 1 month notice period they accepted my resignation and they gave finale date of 10th October. When i ask financial department they are saying 7 days /year of my EOSB. My salary is 5000 DHS 4000 basic+1000 allowances Can u plz guide me plzzzzzzzzzzzzzzzzzzzzzzz.

    Reply to this comment
    • Deepak M

      Sep 25. 2013

      Since you have completed more than 3 years in the company and resigned by your own you are entitled for 14 days/year gratuity. No idea how your company computed your gratuity.

      Reply to this comment
    • Deepak M

      Sep 26. 2013

      If you have completed three and more than three years in the company then company should pay you 2/3rd i.e 14 days basic salary per year as EOS

      Reply to this comment
  61. yobo

    Sep 22. 2013

    hi deepak, i’m yobo. im resigning… I just wanted to confirmed if i am going to get any graduity from the company. Im holding my own visa, join the company April 2012 until October 2013. 3,300 is my basic salary, then there is a 3 months pending salary. and i took a emergency vaction total 5 weeks. base on the contarct i sign biannual air pare is free. and after 6 months they are going to raise my salary but it didnt happened. do you thick how much i will received from the company.
    Thank you!

    Reply to this comment
    • Deepak M

      Sep 22. 2013

      1.Are you holding your own visa? or company provided visa?
      2. If company provided visa then your gratuity would be almost 1,000 dhrs
      3. As per law company has to pay whatever pending salary due to to you

      Reply to this comment
  62. israr pasha

    Sep 15. 2013

    Hi mr deepak i am israr pasha i working from 22 months my contract is two years limited and now i got new job in other company so i resigned my present employer claiming 45 days salary as comensation and they are telling i am not entitled to gratuity and also flight ticket. please advice is they right.
    israr

    Reply to this comment
    • Deepak M

      Sep 16. 2013

      Yes since it is limited contract and you are not completing your contract period company is asking you to pay the compensation and you are not entitled for any gratuity and flight ticket.

      Reply to this comment
  63. Basheer

    Aug 30. 2013

    Hi Sir, I joined the company on 1st September 2011 and resigned on 19th August 2013. In between i went 65 days vacation and 11 days absent. please advice me the benefit calculation.

    Reply to this comment
    • Deepak M

      Sep 01. 2013

      Out of 65 days how many days were paid and how many days were unpaid?. You have not completed 2 years still you have taken 65 days vacation and 11 days absent. Need to get the clearer data.

      Reply to this comment
  64. JD

    Aug 19. 2013

    Hi Deepak, my query is end date is calculated as the date you resign or the date when your 30 days notice period finishes.
    Eg. If my 5 years complete on 31.12.2013, and i resign on 30.11.2013 (30 days before) and work till end 31.13.2013, will this be considered as 5 years completed or not?

    Reply to this comment
    • Deepak M

      Aug 20. 2013

      End of service(EOSB) is calculated till your last working day including the notice period.

      Reply to this comment
  65. angie

    Jun 27. 2013

    Hi, deepek, I just want to know for the limited contract 6 month and working to the company one year last may 2013 is there any gratuity to be calculated? basic salary is 9,000.

    Please i need your advise urgently.

    Thanks.

    Reply to this comment
    • Deepak M

      Jun 30. 2013

      Hi angie, In the limited contract to have gratuity you need to complete the contract period. Otherwise you will not be entitled for any gratuity

      Reply to this comment
  66. Wasif Ghani

    Jun 12. 2013

    Hi! I joined a school as a teacher on 9th September 2008, but my labour contract states 24-11-2008. It is a limited contract.

    I am resigning from my job with one month notice period. From 9th June till 9th September (30 working days for a school).

    What gratuity will I get if my basic salary is AED 2000/-

    The school is refusing to pay any gratuity at all, where as I am paying one month salary for not giving 2 months notice.

    Thanks.

    Reply to this comment
    • Deepak M

      Jun 15. 2013

      Hi Wasif, is your contract is limited? Your gratuity would be almost AED 6,500/-

      Reply to this comment
      • Wasif Ghani

        Jun 15. 2013

        Yes, the contract is limited.

        The school says that I am not entitled for gratuity, since I am not giving a 2 month notice? Is that right?

        What if I give a notice of 1 month 21 days, instead of 2 months?

        Reply to this comment
        • Deepak M

          Jun 17. 2013

          Hi Wasif, if it is mentioned in your employment agreement about your notice period you need to abide the terms. It is better to give 2 months notice if it is mentioned in your agreement.

          Reply to this comment
  67. zaldy

    Jun 01. 2013

    Hi Mr. Deepak

    Can you advice me regarding my situation right now. I have limited contract of one year started Oct. 11, 2012 up to Oct. 10, 2013. Last thursday May 30, 2013 I received one month advance notice with mu company and stated that they are now terminated my contract due to demobilization as per company rule. That means I have a total 8 months and 20 days of service only. When I asked my benefits they answer me that I’m not entitle for severance pay since I’m not completed 1 year of service. Are they right? they terminated the contract which is very clear that not my fault.
    I need your reply please

    Reply to this comment
  68. steve

    May 26. 2013

    Hi deepak, if i tender my resignation and give 30 day notice as per contract this is payable correct, what if company after recieveing my official 30 day resignation they decide to release me without working the 30 day notice period, am i still entitled to payment for the 30 days?
    Steve

    Reply to this comment
  69. saravanan subbarayan

    May 09. 2013

    hi deepak, i,m saravanan subbarayan. just i renewed my contract one month before after finishing of 2yr limited contract.the renewed contarct also limited only.now the problem is since last 5 month i did not get my salary (WPS) and planning to complaint in ministry of labor about the salary also my cancellation also. in this case will i get ban if the company want to put.kindly advise me i have another job in uae.

    Reply to this comment
    • Deepak M

      May 12. 2013

      Hi Saravanan,If the labour case in your favour company cannot put you any ban. But make sure you have all the documents or evidences in your favour.

      Reply to this comment
      • Mary Grace Menas

        Jun 01. 2014

        Hi sir Deepak, im Mary Grace just want to know about my situation im limited contract my contract is 2 years i joined last may 2, 2013 on my company but in my labor card was june 10, 2015 which am going to follow to get one year and if i should follow the date on my labor card it means im not yet getting one year, and my basic salary was 1500 just wanna ask if how i calculate it.

        Reply to this comment
      • normie

        Sep 11. 2014

        hi sir

        ive been working in dubai for 1 year and 3 months my contract is 2 years limited. i wish to resign by october. do i need to pay anything for my employer?

        Reply to this comment
        • Deepak Machado

          Sep 12. 2014

          Unless it is mentioned in your contract that you have to reimburse your employer’s cost, I don’t think there will be any charges.

          Reply to this comment

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