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EWmums

EWfood

ewmoda

is everybody aware of Gratuity?

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4747

Posts

EW MASTER

Latest post on 10 January 2011 - 20:54

Ah but you have to be careful. Gratuity can be calculated on your 'basic' salary. Which is why many companies keep the basic very very low, and put all the rest on as allowances. it IS calculated on the basic salary not any allowances etc hence why companies do that to minimise the costs.

4747

Posts

EW MASTER

Latest post on 10 January 2011 - 20:53

well my company seems not. they said they won't give a single dirham. I'm about to finish my 3 year contract this June and i should have my gratuity, right? I'm sure that it's UAE labour law to pay you gratuity when you leave.... there is a threshold though - ie if you've been at a company less than 5 years they only pay you 30% of your monthly salary as gratuity rather than 100%. friend discovered that recently. it depends what is written on your official labour local contract, if it says that gratituty is included then they dont need to pay it, if you have a company pension, then also they do not need to pay out the gratituty too as its the same thing in the eyes of the laws here.

379

Posts

EW EXPLORER

Latest post on 10 January 2011 - 20:05

Are you entitled if you are on a fix-term contract? thanks I would think so, but best to check with the Ministry of Labor, for the laws that appy to the "jurisidiction" of your employment. (Free zone, DIFC, etc.)

Minky Mills31652

27

Posts

EW NEWBIE

Latest post on 10 January 2011 - 19:50

Are you entitled if you are on a fix-term contract? thanks

379

Posts

EW EXPLORER

Latest post on 10 January 2011 - 18:39

As I said, end of service is not an "allowance". That contract was not very well written. Basic (base) salary is just that: basic. The general contract rule is to do a breakdown such as: basic salary: 8,000 AED, housing allowance: 1,000 AED, transport allowance: 500 AED. "Other allowance" is vague and could mean anything, such as airline ticket, mobile, etc., but NOT end of service gratuity. You really need to go to the Ministry of Labor because it may be a matter of interpretation as to exactly what figure would be used to determine what the basic figure would be in order to calculate your end of service. I would push for the 10,000 as it is stated as it being "basic". You may want to mention to HR that you have been advised to contact the MOL about this. Good luck to you.

9

Posts

EW NEWBIE

Latest post on 10 January 2011 - 17:30

Crystil, and others - Thanks very much for advice. I will try to check with Ministry of labour. My contract says: Basic salary- 10,000 AED Transport Allowance - Included Housing Allowance Included Other Allowance - Included Total salary 10,000 AED According to our HR, other allowance allow for end of service payment in lie of pension. Does this souns right to you?

80

Posts

EW NEWBIE

Latest post on 10 January 2011 - 12:32

I'm in a free zone. I believe it's based on basic salary only; nothing up to one year's service, seven days per year for one to three years, 21 days per year for three to five years, 30 days per year for over five years. If you're in a free zone you can make a formal complaint to them about things like gratuity issues. Sorry, that's as much as I know!

379

Posts

EW EXPLORER

Latest post on 10 January 2011 - 12:32

Your gratuity/end of service is not an "allowance". Take a look at your contract. Do you have a breakdown as to what your salary consisted of: housing? airline ticket (which some companies pay over a period of a year)? transportation? If there is nothing other than a "salary" then they would need to calculate your end of service based on that figure. Did you resign or were you terminated? Worth a trip to the Ministry of Labor. Make sure to take your contract with you. Send an email to HR regarding the end of service payment providing as much information as you can and take the response along with you. Good to have something in writing. <em>edited by Crystil on 10/01/2011</em>

9

Posts

EW NEWBIE

Latest post on 10 January 2011 - 12:23

Dear Ladies, I hope you can help me with this gratuity issue. My company is refusing to pay it, on the basis that my contract says " All other allowances are included in the salary". They interprete ot, as pension is also included in the basis salary, and no gratuity needs to be paid. Is anyone aware if this is a valid reason for refusing to pay gratuity? I have worked nearly 2 years for the company. I would appreciate your help - I am just about to give notice!

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