UAE Labor Law covers a lot of your rights as an employee including employment contracts, workers' records, disciplinary actions, termination of employment, compensations and end of service benefits. The Ministry of Labor has developed a compulsory electronic system to transfer the salaries to workers' accounts in order to ensure they receive their salaries immediately.

 

Calculation of end of service benefits

In accordance with Article 132 of the UAE labor Law, a worker who has completed one or more years in continuous service is entitled to an end of service benefits upon termination of employment, unpaid vacations are not calculated in the length of service,  remuneration is calculated as follows:

1. Twenty-one days wage for each year of service for the first five years

2. Thirty days wage for each year above that.

Provided that the remuneration does not exceed in its total a two years wage.

End of service benefits are calculated based on the last salary of the worker.  All that is given to the worker in kind, housing allowance, transport allowance, travel allowance,  overtime allowance, representation allowance, trading allowance (fund allowance), children teaching allowance,  recreational and social services allowances, or any other allowances or bonuses are not included in the  remuneration which serves as the basis for calculating end of service benefits (Article 134).

 

Discounts of end of service benefits

If the worker, who is under an indefinite term contract, left the work voluntarily after continuous service not less than one year and not exceeding three years, then the worker will be entitled to one-third of end of service benefits. If the period of continuous service exceeded three years and did not exceed five years, then the worker is entitled to  two-thirds of the mentioned end of service benefits. If the period of continuous service exceeded five years,  then the worker is entitled to  the full end of service benefits (Article 137).

If the worker, who is under a definite term contract,  left the work voluntarily by the end of the contract, then the worker is not entitled to the end of service benefits unless the period of his/her continuous service exceeded five years (Article 138).