The question is,
“ I will be retiring shortly after working for my employer for 25 years. I understand from looking at the UAE labor law that I am entitled to 30 days of pay for each year of service”.
So there is a law that says if an employee has worked for more than one year but a small day less than five years. So they are eligible for the full end-of-service gratuity payment. The gratuity payment is based on 21 days of basic wage for each year of work.
After ending five years of service the gratuity amount will be increased to 30 days of basic earnings for each year thereafter.
NC, Dubai asks that he be on a basic salary of 45,000 AED per month and he knows that allowances are not included. He did his calculations where he owed an end-of-service gratuity of 1.12 million AED but the company is saying that they are paying him only 1.05 million AED.
In this case, the NC made the mistake of calculating the amount based on 30 days of salary for all of his years of service. But this condition applies from six years onwards. So here the employer is right.
Read More:
News Source: https://shorturl.at/juJR1
Image Source: https://shorturl.at/kvGY2
About Author
