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EWmums

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ewmoda

If in the contract...

23

Posts

EW NEWBIE

Latest post on 08 November 2011 - 12:29

...there is written a salary but you earn more...what will happen at the end of the contract?Thank you

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64

Posts

EW NEWBIE

Latest post on 08 November 2011 - 21:02

Well I think there was something else involved because I have assisted with numerous court cases on gratuity and not once has it been decided this way. Its always based on the last salary received.

374

Posts

EW EXPLORER

Latest post on 08 November 2011 - 20:20

Gege_DXB that is so incorrect. All of the gratuity is calculated on the last salary received by the employee, not each years salary! Please read Article 134 Gege, it will confirm it. edited by Snuffle on 08/11/2011 I'm not share informations which aren't confirmed by an local lawyer. He calculated the gratuity exactly in the way i posted it. In July 2010 an employee open a case against us with regards to his gratuity and we won. She lost more than 10.000 AED.

1913

Posts

EW EXPERT

Latest post on 08 November 2011 - 18:06

Yes, my salary had increased over the almost 10 years I worked for one company. My gratuity was calculated using the final salary amount.

67

Posts

EW NEWBIE

Latest post on 08 November 2011 - 17:01

Snuffle is completely right, it's no pro-rated over your salaries while you worked there, it's all based on your final salary. I would want to cover my back and have it in writing that my salary had been increased rather than just agreed. Also, any company with a desire for basic internal control environment would want this too. I'm not saying a formal contract change, just a letter stating that effective date of the new salary would be sufficient.

64

Posts

EW NEWBIE

Latest post on 08 November 2011 - 16:57

Gege_DXB that is so incorrect. All of the gratuity is calculated on the last salary received by the employee, not each years salary! Please read Article 134 Gege, it will confirm it. <em>edited by Snuffle on 08/11/2011</em>

374

Posts

EW EXPLORER

Latest post on 08 November 2011 - 16:50

Crystalsindubai is right. Your EOSBs are calculated on the last salary received... [quote'> Not totally correct. Example: employee worked 4 years in the company year: 1-2 salary of 20.000 AED year: 3-4 salary of 30.000 AED Gratuity of the 1-2 years will be calculated on the monthly salary of 20.000 AED, 3th-4th year - 30.000 AED. Gratuity will be not calculated for 4 years on the basis salary of 30.000 AED.

374

Posts

EW EXPLORER

Latest post on 08 November 2011 - 16:35

[u'>by the way - if your total benefits are higher than your monthly salary its against the labour law.[/u'> So, what if the salary had changed during the course of a limited contract period? Surely, a new contract after expiry of that first contract will reflect that increase, but in the meantime employee monthly records will suffice to proof the correct benefits that must be taken into consideration for calculation of indemnity. In case of disagreement, the labour department will side with the employee. I'm not aware about limited contract as in our company all employees are working with unlimited contracts. I seriously question the accuracy of your statement in paragraph 2.[/u'> Our Emirati Lawyer, which is responsible for all goverment processes related to the goverment advice us to change the salary split of an employee because his benefits (Car allowance and Housing allwowance) are higher than his actual salary. If the employee will open a case against the company with regards to this topic the ministery of labour will settle a correct salary to make sure that the end of service gratuity will be correct and fair. Many companies filling in very low salaries to avoid high gratuity payments in the end of service and the ministry will not allow that in the future. <em>edited by Gege_DXB on 08/11/2011</em>

64

Posts

EW NEWBIE

Latest post on 08 November 2011 - 16:33

Crystalsindubai is right. Your EOSBs are calculated on the last salary received, it doesn't matter if this is the same as the one in your employment contract or not as long as your bank records or salary certificates confirm a different salary. Its natural for a salary to increase with time and not all companies release amendments to the contract. As to Gege_DXBs other comments, I've not clue what thats about :\:

crystalsindubai

713

Posts

EW GURU

Latest post on 08 November 2011 - 16:07

If your labour contract is wrong (lesser salary) the employee is intitel to get only the gratuity according the the salary mentioned there. Letter of the company is not enough. We changed all labour contracts after salaries rise to make sure that the gratuity is correct. [u'>by the way - if your total benefits are higher than your monthly salary its against the labour law.[/u'>cre So, what if the salary had changed during the course of a limited contract period? Surely, a new contract after expiry of that first contract will reflect that increase, but in the meantime employee monthly records will suffice to proof the correct benefits that must be taken into consideration for calculation of indemnity. In case of disagreement, the labour department will side with the employee. I seriously question the accuracy of your statement in paragraph 2.

374

Posts

EW EXPLORER

Latest post on 08 November 2011 - 14:02

If your labour contract is wrong (lesser salary) the employee is intitel to get only the gratuity according the the salary mentioned there. Letter of the company is not enough. We changed all labour contracts after salaries rise to make sure that the gratuity is correct. by the way - if your total benefits are higher than your monthly salary its against the labour law.

23

Posts

EW NEWBIE

Latest post on 08 November 2011 - 12:47

Thank you. So...do you suggest to say to the employer to write this letter or change the contract?

67

Posts

EW NEWBIE

Latest post on 08 November 2011 - 12:36

i would have thought that they will calculate your eosg based on the rate in your contract unless you have a formal letter in addition to the contract stating that you earn more.

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