Benefits calculation on completion of 3 year contract UAE

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Benefits calculation on completion of 3 year contract UAE

Postby ahmeed80 » 13 Jul 2009, 11:28

Hi,

I want to know upon completion of my unlimited 3 year contract, what type of benefits i will be entitled for?

1. Gratuity ( how it will be calculated)
2. One Month Salary ?
3. Air Ticket to my country (whether i leave Dubai or not)

and other allowances if any.

Thanks in advance :)
ahmeed80
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UAE gratuity and benefits calculation

Postby shawarma » 13 Jul 2009, 18:35

Hello ahmed and welcome to the UAE job forums :).

A 3 year unlimited contract doesn't exist, or at least, I haven't heard of one. You can have a 3 year limited contract, or an unlimited contract (which, by definition, is unlimited).

1. The gratuity calculations are different for each type of contract.

For a limited contract, Article 132 of the UAE Labour Law defines gratuity as 21 days pay for each year up to 5 years, and 30 days pay after that. So for 3 years, you would get 63 days pay (it might be less if you have been absent). The calculation is based on your base salary, allowances are not included (according to Article 134).

For an unlimited contract, the gratuity is less (Article 137). If you have completed between 3 and 5 years then you get 2/3 of the limited contract amount, in other words, 42 days pay in your case. If you have completed less than 3 years, then you only get 1/3 of the limited contract gratuity amount.

2. An extra month's salary is not in the labour law as far as I know, but Article 75 specifies that an employee is entitled to 30 days leave per year after working for at least one year at the company, and Article 79 specifies that the employee is entitled to pay in lieu of leave days remaining after termination or resignation.

3. Article 131 says that the employer is responsible for repatriation of the employee (an air ticket) plus whatever other repatriation allowances are specified in the contract. An exception might be if you transfer to another job in the UAE, then the employer you're leaving might not have to provide an air ticket. Whether or not an air ticket is provided in the end usually comes down to whether you cancel your visa or transfer it to the new employer.

For any of the above, if your contract specifies additional benefits, then that is what you are entitled to. If your contract specifies fewer benefits then the labour law should override that but it's probably best to at least contact the UAE labour department in that case.
Please use the forum for questions, not the PM system.
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Re: Benefits calculation on completion of 3 year contract UAE

Postby ahmeed80 » 14 Jul 2009, 12:36

Thanks Shawarma for your reply.I have an unlimited contract which will be expire in September 2009.During my 3 years i took only 40 days vacations.Can i claim for an encashment of my remaining 50 days leave? Also if i successfully complete my 3 years, will i get banned from Mol for 6 months? I heard that there is no ban upon successfully completion of contract.
ahmeed80
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Limited or unlimited contract UAE

Postby shawarma » 14 Jul 2009, 17:01

Please see previous post about contracts - a 3 year unlimited contract doesn't exist. You have either a 3 year limited contract, after which you shouldn't receive a ban if you have completed it and handed in the proper notice. Or you have an unlimited contract, which means you get an automatic 6 month ban unless an exemption applies. But check with the labour department for official information, and if a ban lifting fee can be paid (probably better to go there in person to ask about that than over the phone).

The leave calculations can be tricky but yes, in general, if you were entitled to 3 months leave but only took 1 month, then you should receive cash in lieu of the remainder. Obviously although the UAE Labour Law says you get 1 month per year, that does not mean you are entitled to 30 (or 31) working days of leave (i.e. 6 weeks if you worked a 5 day week and took 1 week off at a time). Usually if you go on leave at the end of a working week and return at the start, the first and last weekends of your leave period are not included in the calculations but the in between weekends are.
Please use the forum for questions, not the PM system.
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Re: Benefits calculation on completion of 3 year contract UAE

Postby ahmeed80 » 14 Jul 2009, 18:22

Thanks for your detailed answer and appreciate it.I will definitely visit the MOL in order to get the accurate information about my case.Thanks again for your cooperation. :)
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