Reader Mail bag: Leave without pay, Gratuity, End of Service

Leave without pay, Gratuity and End of Service benefits

Emails: 02-11-2013 to 06-11-2013

Q1.

Shall the leaves without pay be calculated within the service period?

As per Article 132 of UAE Labour Law, days of absence from work without pay are not included in computing the period of service. In other words the period of leave without pay shall not be included within the service period.

Q2.

I have worked with my employer for two years and 5 month; shall the End of Service Gratuity be calculated for the parts of years?

As per the  Article 133 of UAE Labour Law The employee shall be entitled to end of service remuneration in respect of fractions of the year payable pro rata to the time actually worked provided that he has completed one year of continuous service.

The worker shall have the right to have the End of Service Gratuity for the part of the year if he has completed one year of service or more.

Q3.

Shall the End of Service Gratuity be calculated for the total salary?

As per the ARTICLE 134 of UAE Labour Law “Without prejudice to the provisions of some laws regarding the granting of pensions and gratuities to employees of some establishments, the end of service gratuity shall be computed on the basis of last wage which the employee was entitled to, in respect of those drawing their salary per month, week or day, and on the basis of average daily wage stipulated in Article (57) in respect of those drawing their wages on piece work basis. The wage which is considered as basis for computation of the end of service gratuity shall not include anything given to the labourer in kind, housing allowance, transport allowance, travel allowance, overtime allowance, representation allowance, cashier’s allowance, children education allowance, recreation and social services allowance or any other allowances”.

The End of Service Gratuity shall be calculated according to the last salary i.e only on Basic salary obtained by the worker.

 Q4.

If a worker died, shall his employer pay his End of Service Gratuity?

As per the ARTICLE (136) of UAE Labour Law, in fulfillment of the provisions of Article (132), cases of employment preceding the effective date of this Law shall not be considered as cases entitling the employee to end of service gratuity. Without prejudice to rights acquired by the employee under any repealed labour law or contracts of employment, agreements, by-laws or regulations of the establishment. In the event of his death, the employee’s gratuity shall be paid to his legal heirs.

In other words  if the worker died, his employer must pay his End of Service Gratuity to his hires.