The UAE Labour Law outlines specific provisions for termination benefits, which are designed to protect the rights of both employers and employees in the event of job termination. Here’s a comprehensive guide to help you understand the key aspects of UAE Labour Law termination benefits.
What are UAE Labour Law Termination Benefits?
Termination benefits are financial compensations paid to employees upon the termination of their employment contract. These benefits are governed by the UAE Labour Law and are designed to provide a safety net for employees who lose their jobs.
Types of Termination Benefits
There are two types of termination benefits in the UAE:
End of Service Gratuity
This is a lump-sum payment given to employees who have completed at least one year of continuous service. The amount is calculated based on the employee’s last basic salary and the number of years of service.
Compensation for Unfair Dismissal
If an employee is unfairly dismissed, they may be entitled to compensation. The amount of compensation is determined by the Labour Court and is based on the employee’s salary, length of service, and the circumstances of the dismissal.
Reading Suggestion: UAE Unemployment Insurance, Fines, Application, and Claim
Calculation of Termination Benefits
The calculation of termination benefits is based on the employee’s last basic salary and the number of years of service.
For end-of-service gratuity, the calculation is as follows:
- For the first five years of service, the employee is entitled to 21 days’ basic salary.
- For each additional year of service, the employee is entitled to an additional 30 days’ basic salary.
Compensation for unfair dismissal is determined by the Labour Court and is based on the employee’s salary, length of service, and the circumstances of the dismissal.
Termination Benefits and the New Labour Law
The new UAE Labour Law, which came into effect in 2021, has brought about some changes to termination benefits. Under the new law, employers are required to provide a valid reason for termination, and termination benefits are calculated based on the employee’s last basic salary and the number of years of service.
Legal Tips on UAE Labour Law Termination Benefits
Dr. Maryam discussed the necessary points for the termination in UAE.
Conclusion
UAE Labour Law termination benefits are designed to protect the rights of employees in the event of job termination. By understanding the key aspects of these benefits, employers and employees can ensure a smooth transition during the termination process. For more informative content, follow Gulf Cast.
Thanks for this helpful tip. I have some other questions regarding the termination, should I contact Dr. Maryam directly or I can expect an answer by commenting here?
You can ask Dr. Maryam or even you can ask here too