No Gratuity for these Employees in UAE

Many companies send their employees a termination letter to avoid the payments of gratuity in UAE. Apart from this unfair act from employer, is there any other way where employees lose rights to the end of service gratuity?

Honestly writing, the employee (worker) always has a right for the end of service benefits and it is illegal to send the termination to the employee just to save the end of service gratuity payment. In-case if employer does this, the employee has the following claims against the company.

1.     Gratuity

2.     Minimum 1 month salary for notice period

3.     Pay for arbitrary (uninformed) dismissal

Can an employee lose his gratuity claim?

Yes, the employee can lose his/her gratuity entitlement only if he/she breaches the employment contract in a manner that allows the employer (company) to terminate the worker for cause mentioned in UAE Labour Law Article 120, the other reason when an employee can lose his end of service benefits are:

·       If employee breaches the limited contract

·       If employee resigned before completing one year

·       If employee owes money from company which is more than gratuity, the employer has right to deduct it from employee final compensation.

·       If employee violates the UAE labor law rules written in Article 120 and get terminated without notice period.

Are you eligible for Gratuity? Check Here

Termination of contract and Article 120:

As per UAE labour law article 120, the employer has right to terminate the employment contract without notice only if the worker (employee):

·       Should he be absent without valid cause for more than twenty non - consecutive days in one year, or for more than seven consecutive days.

·       Should he divulge any of the secret of the establishment where he works

·       Should he be found in a state of drunkenness or under the influence of a narcotic during working hours

·       Should he assault during the work the employer, responsible manager or co-worker.

·       Should the worker assume false identity or nationality, or submits false certificates or documents.

·       Should the worker be appointed under probation, and the dismissal occurs during or at the end of the probation period.

·       Should the worker commit an error resulting in colossal material losses to the employer, provided that the Labor Department is notified of the incident within 48 hours of the knowledge of the occurrence thereof

·       Should the worker violate the instructions related to the safety at work or in the workplace, provided that such instructions be written and posted in a prominent location, and that he/she is notified thereof should he/she be illiterate.

·        Should the worker fail to perform his main duties in accordance with the employment contract, and fail to remedy such failure despite a written investigation on the matter and a warning that he will be dismissed in case of repeating.

·       Should he be convicted in a final manner by the competent court in a crime of honor, honesty or public ethics

How to access Online Gratuity Calculator?

      UAE specially Dubai and Abu Dhabi government has achieved the international labour standards and provided many online services such as checking labour contract, visa status, ID status, as per the employer and employees need, below are the links where an employee can use online end of service calculator to calculate gratuity in few minutes.

·       Gratuity for Domestic workers

·       Gratuity for limited & unlimited contracts

·       Gratuity for Govt & Free Zone employees

·       Gratuity for JAFZA employees