How is the end of service gratuity calculated where the employer terminates the contract

How is the end of service gratuity calculated where the employer terminates the contract?

How is the end of service gratuity calculated where the employer terminates the contract?

In the case that an employee is terminated from their position and has completed one year or more of continuous service, they will be entitled to a gratuity payment as follows

  • Between 1 year and 5 years of service
    Employee is entitled to full gratuity pay based on 21 days salary for each year of work.
  • 5 or more years of service
    Employee is entitled to 21 days salary for between 1 year and 5 years and 30 calendar days for each additional year.

End of service gratuity must not exceed two years pay. Employees are not entitled to gratuity in the case that that they are terminated for gross misconduct under the provisions of the UAE Labour Law.

If you need assistance with gratuity calculation, staff, family and dependant visas or other related company set up, restructuring, local partner or PRO support matter in Abu Dhabi, Dubai, the wider UAE, Oman or Qatar, then please do get in touch with us on +971 (0)4 456 1761 for Dubai or +971 (0)2 448 5120 for Abu Dhabi, email us at info@ppg.ae or complete the contact form below and we will be delighted to assist you.

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