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?
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
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.
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: