Reader Emails: Employment before Labor Law, ban from work
Emails: 06-11-2013 to 10-11-2013
I have worked with my employer for the year 1975, i.e. before the issuance of the Labour Law in 1980; shall I have the right to claim for the End of Service Gratuity for my service period with my employer before the issuance of the Federal Labour Law in 1980?
The worker shall not be entitled to have the End of Service Gratuity for the period before the issuance of the Federal Labor Law in 1980 unless the worker was a national citizen.
Kindly show how can the End of Service Gratuity be calculated if the worker has ceased working when he is employed under unlimited Period Contract?
As per the ARTICLE (137) of UAE Labour Law If an employee under a contract with unlimited period has left his work at his own option after a continuous service of not less than one year and not more than three years, he shall be entitled to one third of the end of service gratuity provided for in the previous Article.
If the period of his continued service is more than 3 years and less than 5 years he becomes entitled to 2/3 of the said gratuity, but if his continued service exceeds 5 years, he becomes entitled to the entire gratuity.
1-If the worker’s service period is not less than one year and not exceeding 3 years, he shall be entitled to have 1/3 the value of End of Service Gratuity, i.e. 7 days in each year.
2- If his service period has exceeded 3 years but less than 5 years he shall be entitled to have
2/3 the value of End of Service Gratuity, i.e. 14 days in each year.
3- If his service period has exceeded 5 years he shall be entitled to have 21 days as a value of
End of Service Gratuity for each year of service.
* And if the service period has exceeded 5 years he shall have 30 days as End of Service Gratuity for each year of service.
When shall the worker be banned from having the End of Service Gratuity?
As per the ARTICLE (139), the employee shall be fully deprived of the end of service gratuity in any of the following cases:
a. if he is dismissed from service for any reason in accordance with Article (120) of this Law or if he leaves his work to avoid dismissal in accordance with the provisions of this Article.
b. If he leaves his work willingly and without notice in cases other than those enumerated in Article (121) under this law with respect to unlimited period contracts or before he completes five years of continuous service with respect to limited period contracts.
I have worked with my employer, whereas present in the establishment a box called the “saving box” in which the employer was used to put in it an amount of money for the account of the workers as an End of Service Gratuity, in case I have reached my end of service period, shall I deserve to have from such amount?
As per the ARTICLE (140) of UAE Labour Law, in any establishment where a saving fund is raised for employees and if the regulations of such fund provide that payments made by the employer to the fund for the account of employee is a legal commitment against the end of service gratuity, the
amount of savings or benefits due hereunder shall be paid whichever is greater. If the fund regulations have no provisions that amounts paid by employers is a legal commitment for the end of service gratuity, the employee shall collect amount due to him from the saving fund in addition to the legal gratuity
The worker shall have the right to receive from this amount, if the employer is depositing the same in the saving box against his legal obligation towards the End of Service Gratuity…, and if it was stipulated in the saving box as such.
The worker shall have the right to receive What he was entitled for from the saving box in addition to the End of Service Gratuity if the saving box didn’t stipulate that What was deposited by the employer in the said saving box is against the employer’s legal obligation towards the End of Service Gratuity.
I am working in an establishment, in which the system of pension and insurance is adopted, in case of my end of service; shall I have the right of option between having the pension and the End of Service Gratuity?
As per the ARTICLE (141) of UAE Labour Law, in any establishment where a pension or security schemes or similar schemes are maintained, the employee who is entitled to retirement pension may select either this latter or the prescribed gratuity or whichever from both thus is more favourable to him.
The worker may choose between having the pension and the End of Service Gratuity or to have his dues in the pension or insurance box or whichever preferred to him.