distribution of end-of-service gratuity

How are end-of-service gratuities determined and paid?
 

If an employee has worked for an employer continuously for one year in the UAE, they are eligible for a gratuity. This is in accordance with Article 51(2) of the Employment Law, which states that a foreign full-time employee who has completed one or more years of continuous service is entitled to severance pay. Severance pay is calculated using the basic salary in the following manner: 
a. 21 working days' salary for each of the first five years of service.
b. 30 working-day salaries for every additional year of service.

Additionally, a time of unpaid leave from employment is not permitted for determining severance pay (gratuity). The Employment Law's Article 51(4), which specifies that "Days of absence from work without compensation will not be counted within the length of service," is in line with this.

An employer has the right to take a specific sum from an employee's gratuity that is owed to it as a result of a legal requirement or a court order. According to Section 51(7) of the Employment Law, "The Employer may deduct from the severance compensation, in accordance with the terms and procedures provided by the Executive Regulations of this Decree-Law, any amounts owed by law or court order."

The gratuity is often provided along with other end-of-service bonuses within 14 days of an employee's employment contract being terminated or reaching its expiration. This is in accordance with Article 53 of the Employment Law, which states that the employer must pay the employee all of his salary and other entitlements specified in this Decree-Law and its implementing resolutions, the contract, or the Establishment by laws within 14 days of the contract's expiration.

If you've worked for your current employer for more than a year without taking a break, you are qualified for severance compensation (gratuity) under the aforementioned legal criteria. In fact, it is paid to an employee at the conclusion of their employment along with other entitlements in the registered bank account. The aforementioned sum is paid by the Ministry of Human Resources and Emiratization's (the "MOHRE") Wages Protection System (WPS).