Reader mail Bag: Annual Vacation, Gratuity calculation

Vacation Time, Gratuity Calculation

Dates: 31-10-2013 to 01-11-2013

Question 1:

If a labour compliant has been referred to the court…from when does the period of 30 days for vacation of the accommodation shall start to go into effect?

The employer shall file a complaint to vacate the worker from the accommodation…, and the 30 days period shall start to be effective commencing from the date in which the employer has deposited the worker’s dues with the Ministry as a trust…, if the worker didn’t vacate the accommodation after this, the concerned authorities should take the necessary action.

Refer ARTICLE (131) (REPEATED)*

1. In application of the provisions stated in the preceding clause, the expenses of employer’s repatriation shall mean the cost of his travel ticket and whatever is provided for in the employment contract or in the bylaws of the Establishment, such as the employee’s entitlement to travel tickets for his family and costs for shipment of his luggage.

 2. In the cases where the employer provides the employee with accommodation, the employee shall be obliged to vacate the accommodation within a period not to exceed thirty days from the date of his service termination.

 3. The employee may not delay vacation of accommodation, thereafter, for any reason whatsoever, provided that the employer fulfills his obligation towards the employee with respect to the followings: 

a) Expenses defined in Clause (1) under this Article.

b) End of service remuneration and any other dues assumed by the employer under the employment contract or the bylaws or the Law.

 4. However, if the employer raised a dispute with respect to the amount of expenses and dues referred to above; the competent labour Department shall determine urgently the amount of such expenses and dues, within one week of a notification being sent to it, provided always that after such determination is made by the Labour Dept. the employee must be informed forthwith.

 5. In such a case, the validity of the thirty days period referred to in Clause 2 under this Article, shall take effect from the date, the employer deposits the expenses and dues determined by the labour Department, with the treasury of Labour Dept. as a trust.

If however the employee has failed to vacate the accommodation after expiry of the said thirty days, the Labour Department, in cooperation with the competent authorities in the concerned Emirate, will take the necessary administrative action to secure vacation.

 6. No provisions under this Article is deemed to prejudice the right of employee to litigate thereabout before the competent court.

Question 2:

How the End of Service Gratuity is determined?

The worker deserves the End of Service Gratuity if he completed one year or more in the service…and it shall be calculated as follow:

Please read the following post for Gratuity Calculation.