The sum of “two years’ salary” is the maximum end-of-service gratuity in the “private”

The Ministry of Human Resources and Emiratisation confirmed that the entitlement of a worker or employee who works full-time for any establishment in the private sector to an end-of-service benefit upon leaving work or ending his service is conditional on completing at least a year of “continuous” work, explaining that the days of the employee’s absence from Work without pay is not included in the calculation of the period of service.

She explained that if the worker worked with the employer for a period of less than a year, he is not entitled to any end-of-service gratuity, while if the worker’s service period is less than five years, he is entitled to a reward equivalent to 21 days’ wages for each year of service, if the worker’s service period exceeds For the five years, he is entitled to 30 days’ wages for each year, in excess of the first five years, pointing out that the maximum limit for the bonus pool should not exceed two years’ wages.

And the Ministry stated, in an indicative publication that it recently broadcast on its official pages on social media platforms, that the worker is entitled to an end-of-service reward for fractions of the year, in proportion to what he spent of it at work, provided that he has completed a year of “continuous service”, provided that this reward is calculated on The basis of the value of the last basic salary that the employee received, meaning that the basic salary allocations such as “housing, transportation, utilities, and furniture” are not included in the salary on the basis of which the bonus is paid.

The Ministry indicated the need for the employer to commit to paying the worker all his wages, other entitlements, and end-of-service benefits stipulated in the federal law regarding the organization of labor relations and the decisions implementing it, and in the work contract and the establishment’s system, within a period not exceeding 14 days from the end of the contractual relationship with the worker. The employer may deduct from the end of service gratuity any amounts due to him from the worker.

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