How to calculate the End Of Service for the unlimited contracts in case of resignation/termiantion?
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End Of Service
What most people don't know about the End of Service Gratuity in U.A.E.
1. Even if the contract was not updated (the basic salary listed on the government contract it is lower than the amount you actually received as the salary), the end of service will be calculated based on the actual salary, and not on the amount which is listed on the contract.
2. Any regular bonus or regular commission will be added as part of the basic salary and will be calculated in the end of service calculation.
If the bonus or commission it is not a fixed amount, and varies from month to month (or depends how it is paid: yearly, quarterly), the average of the bonus/commission will be added to the basic salary.
3. If, for any reason, you worked without visa, before having a contract, and you received a salary, the end of service will be calculated from the real date of joining and not from the one listed on the contract. (in this case you should be able to prove the real date of joining).
4. In case of leaving the UAE, after the end of service, the company should provide one way ticket to your country (This rule it is not posted in the UAE Labour Law, but the company -as the sponsor- it is responsible for the repatriation of the employee).
5. In any case, resignation/termination, and no matter the period of service (not even in less than 1 week employment), the company CAN’T ask the employee to pay for the visa expenses. The visa expense is ONLY on the sponsor (Employer).
6. No matter what, the employer it is not allowed to hold the employee passport. (a passport is the property of the issuing country and no one may hold the passport)
I am not a legal adviser, lawyer or Employee of any Government, and all the information on this website is to be used as a guidance and is not be taken as granted.
By reading all of the above you take responsibility for your actions, and I am in no way responsible for your actions.
For more information on how to calculate the end of service gratuity or on any other aspects on UAE Labour Law, kindly check with a legal adviser.
The Official UAE Labour Law you can find it here.