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UKSolicitorJA
UKSolicitorJA, Solicitor
Category: Employment Law
Satisfied Customers: 4312
Experience:  English solicitor with over 12 years experience
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We have an individual, based in Dubai fulfilling a standalone

Customer Question

We have an individual, based in Dubai fulfilling a standalone role for us. They have a UK employment law contract, but in line with UAE Labour Law.

The individual started in 20th January 2013 and we now need to make the position redundant.

I need to know if there are any differences between UK Employment Law and UAE Labour Law in terms of the redundancy process, consultation and payments.

We have also agreed to pay for the cost of the visa and residency for the individual and their family, I assume this will cease when their employment ceases?
Submitted: 3 years ago.
Category: Employment Law
Expert:  UKSolicitorJA replied 3 years ago.
Hello,

From my research, there are no provisions for redundancy under UAE labour law so if you follow English redundancy law and pay severance pay after consultation, you should be fine, along with notice or pay in lieu of notice, accrued annual leave not taken and salary up to the last day worked.

Normally yes, your obligations to the employee cease when the employment relationship ends, so no further need to pay for visas etc.

Hope this helps


Customer: replied 3 years ago.


Thank you for the advice. The employee is now stating that they would be entitled to a gratuity at the end of service. As this is not a fixed term contract and they have only completed 1 years service, they are not entitled to redundancy pay, but can you confirm that we are obligated to pay him 21 days wages instead?


 


Kindest Regards


 


Louise

Expert:  UKSolicitorJA replied 3 years ago.

Yes, 21 days' wages as end of service gratituty would accrue under UAE law for the completed year or service plus an additional pro rata amount for the time worked in the second year of service until the date the employment ends.

All the best

UKSolicitorJA, Solicitor
Category: Employment Law
Satisfied Customers: 4312
Experience: English solicitor with over 12 years experience
UKSolicitorJA and 2 other Employment Law Specialists are ready to help you
Customer: replied 3 years ago.


We have decided to pay in lieu of notice and so their employment would end at the end of March.


 


The employee is stating according to UAE Labour Law that their gratiuity pay and their annual leave would still accrue during their notice period which in this case is 3 months. Can this be checked please?


 


Also is there any guidelines in terms of pro - rata'd amount for the gratuity. I was going to work it out based on completed months service - i.e. 21 days divided by 12 and times by the number of completed months of service for the part year, multiplied by the daily rate of pay, unless there is further guidelines which advises me that I can't calculate it this way?


 


I look forward to hearing from you.


 


Louise


 

Expert:  UKSolicitorJA replied 3 years ago.

Hello Louise,


Yes, annual leave and end of service gratuity continue to accrue during the notice period so if you are paying them in lieu of notice, the two should be calculated according to when their notice would have ended, had pay in lieu of notice not been made.

 

for an example in calculating the gratuity, this may help:

 

  1. Basic salary = AED 10,000 per month
  2. start date = 01-01-2010
  3. End date = 31-03-2011
  4. Total number of days worked = 455 days
  5. Total number of years worked = 455/365=1.25 years rounded up
  6. 21 days’ Basic salary = AED 6904.1
  7. Wages per day = AED 10,000 x 12months divide by 365 days= 328.76
  8. Amount: 21 days x 328.76 x1.25 years = 8,606.49


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