Losing a job can be overwhelming. But understanding your rights doesn’t have to add to the stress! The UAE Labour Law is designed to protect private-sector employees, ensuring you receive every dirham you’ve earned. Keep reading to dive into the nitty-gritty of your entitlements and discover how to navigate your post-employment situation like a pro.
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End-Of-Service Gratuity
Your end-of-service gratuity is a severance payment calculated based on your basic salary and the length of your employment with the company. You’re eligible for this payment once you’ve completed at least one year of service.
How It’s Calculated
- Less than one year of service: No entitlement to gratuity.
- One to five years of service: You’ll receive 21 days’ worth of your basic salary for each year of service.
- More than five years of service: For each year beyond the fifth, you’ll get 30 days’ worth of your basic salary. Keep in mind that there is a cap on your total gratuity payment. The payment won’t exceed the equivalent of two years’ salary. Employers need to settle all your outstanding payments within 14 days of your contract ending. And if there’s a delay, you have the right to lodge a complaint with the Ministry of Human Resources and Emiratisation (MOHRE).
Alternative End-Of-Service Scheme
Some private sector employees are enrolled in a voluntary Alternative End-of-Service Benefits Scheme. This scheme swaps the usual gratuity for an investment-based savings fund. Your employer contributes monthly to approved funds on your behalf, and you receive the returns when your employment concludes. Any gratuity you accrued before joining this scheme remains protected under the standard calculation. Similar to the end-of-service gratuity, you must receive your pay within 14 days of your termination.
Unemployment Insurance
The Involuntary Loss of Employment (ILOE) scheme provides up to three months of financial support if you lose your job through no fault of your own. To qualify, you should have been a contributing member of the scheme for at least 12 consecutive months and must not have resigned or been dismissed for disciplinary reasons. You need to submit your claim within 30 days of your employment ending. This scheme is mandatory and funded by employee contributions.
Notice Period
During your notice period, which can range from 30 to 90 days as per your contract, you’re entitled to your full salary. In some cases, your employer can give you the green light for an early departure. Until then, you’re generally expected to continue working throughout your notice period.
Additional Entitlements
- Repatriation Flight: If your employment was terminated, your employer is responsible for covering the cost of your flight back home. This applies if you’re not planning to stay in the UAE or move to a new employer.
- Experience Certificate: Employers are legally required to provide you with an experience certificate stamped by MOHRE. If it’s delayed, you can request it directly from MOHRE.
- Work Permit Cancellation: Your employer can’t proceed with cancelling your work permit with MOHRE until you’ve officially signed to confirm you’ve received all your dues. This includes your salary, gratuity, and any other outstanding payments, such as unused annual leave.
- Visa Grace Period: Once your visa is cancelled, you’ll typically have about one month or more to sort out your status. The exact date will be noted on your cancellation paperwork. During this period, you can apply for a new residency visa with a new employer, apply for a family visa, or make arrangements to leave the country.
Your current unemployment, while challenging during these unprecedented times, is made easier by the clear legal guidelines in place. For more guides on your employability rights in the UAE, keep refreshing the Gulf Buzz website!
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