The UAE labour law covers many of your rights as an employee including employment contracts, records of employees, salaries, working hours, national holidays, annual leave, health and safety of employees, disciplinary codes of conduct, termination of appointment, repatriation and gratuity or end of service benefits. The Ministry of Labour has introduced a compulsory electronic salary transfer system, to guarantee prompt salaries of all employees.
Calculation of Gratuity/Severance Pay
According to Article 132 of the UAE Labour Law, a worker who has completed one or more years of continuous service shall be entitled to severance pay at the end of his employment. The severance pay shall be calculated as follows:
21 days’ wage for each of the first five years of service
30 days’ wage for each additional year of service provided always that the aggregate amount of severance pay should not exceed two year’s wage.
