Question: I will be retiring shortly after working for my employer for 25 years. I understand from having looked at the UAE labour law that I am entitled to 30 days of pay for each year of service.
I am on a basic salary of Dh45,000 ($12,253) per month and I know that allowances are not included. By my calculations, I am owed an end-of-service gratuity of Dh1.12 million, but the company is saying that they only have to pay me Dh1.05 million. Can you clarify who is right in this case?
Can you also confirm when it has to be paid as the company wants to delay making the full payment until the end of October. NC, Dubai
Watch: UAE launches new gratuity scheme
Answer: If an employee has worked for more than one full year but fewer than five years, they are entitled to full end-of-service gratuity payment based on 21 days of basic salary for each year of work.
After five years of service, this increases to 30 days of basic salary for each year thereafter.
NC has confirmed that he started working for the company on October 3, 1998, and that his last day of service will be on September 29 of this year. He has only taken approved annual leave, so there are no unpaid days of absence to be deducted.
Use this tool to calculate your gratuity pay
It appears that NC has calculated the amount based on 30 days of salary for all of his years of service, but this only applies from the sixth year onwards.
In this case, the employer is correct.
For anyone who has worked for a company for a long time, it is worth noting that there is an upper limit for gratuity payments in the labour law.
Article 51, clause 6, states: “It is required based on the foregoing that the end-of-service benefits for the foreign worker in its entirety does not exceed two years’ wage.”
This means that the employer can cap the amount payable at an amount equivalent to two years of basic salary, although if the calculation exceeds this amount, they can choose to pay the higher amount should they wish to do so.
The new labour law, which came into effect in February last year, also specifies a time limit as to when an end-of-service gratuity should be paid.
Article 53 of the law states: “The employer shall pay to the worker, within (14) fourteen days from the end date of the contract term, his wages and all his other entitlements stipulated herein and resolutions issued for its implementation, the contract or the establishment’s by-laws.”
This makes it clear that NC's employer should not delay making the payment. If it fails to pay NC in a timely manner, he can register a case against the company with the Ministry of Human Resources and Emiratisation.
Q: I am a clerk at a company and I work long hours because we are busy and my manager says I have to get the work done. I asked about overtime pay, but was told no. Am I entitled to be paid for working for 10 hours each day? CV, Sharjah
A: The UAE's labour law is clear about the number of hours that employees are permitted to work each day and each week.
Article 17.1 of the labour law states: “The maximum normal working hours for workers shall be (8) eight hours per day or (48) forty-eight hours per week.”
While certain categories of employees can be required to work for nine hours per day, the role of clerk does not fall under this. Therefore, if CV is asked to work for more than eight hours a day, they are entitled to be paid overtime.
This is set out in Article 19 of the labour law, which states: “1. The employer may instruct the worker to work overtime over the normal working hours, provided that they do not exceed two hours per day. The worker may not be instructed to work for more than that period, except in accordance with the conditions and rules specified by the Implementing Regulation hereof. In all cases, the total working hours shall not exceed (144) one hundred and forty-four hours every (3) three weeks.
“2. If the work conditions necessitate that the worker works for more than the normal working hours, the excess period shall represent overtime, for which the worker shall receive a wage equal to the wage corresponding to the normal working hours, which is calculated according to the basic wage plus an increase of not less than (25%) twenty five per cent of that wage.”
Should the employer fail to pay overtime, the employee can register a case with the Ministry of Human Resources and Emiratisation.
Keren Bobker is an independent financial adviser and senior partner with Holborn Assets in Dubai, with more than 30 years’ experience. Contact her at keren@holbornassets.com. Follow her on Twitter at @FinancialUAE
The advice provided in our columns does not constitute legal advice and is provided for information only
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Key figures in the life of the fort
Sheikh Dhiyab bin Isa (ruled 1761-1793) Built Qasr Al Hosn as a watchtower to guard over the only freshwater well on Abu Dhabi island.
Sheikh Shakhbut bin Dhiyab (ruled 1793-1816) Expanded the tower into a small fort and transferred his ruling place of residence from Liwa Oasis to the fort on the island.
Sheikh Tahnoon bin Shakhbut (ruled 1818-1833) Expanded Qasr Al Hosn further as Abu Dhabi grew from a small village of palm huts to a town of more than 5,000 inhabitants.
Sheikh Khalifa bin Shakhbut (ruled 1833-1845) Repaired and fortified the fort.
Sheikh Saeed bin Tahnoon (ruled 1845-1855) Turned Qasr Al Hosn into a strong two-storied structure.
Sheikh Zayed bin Khalifa (ruled 1855-1909) Expanded Qasr Al Hosn further to reflect the emirate's increasing prominence.
Sheikh Shakhbut bin Sultan (ruled 1928-1966) Renovated and enlarged Qasr Al Hosn, adding a decorative arch and two new villas.
Sheikh Zayed bin Sultan (ruled 1966-2004) Moved the royal residence to Al Manhal palace and kept his diwan at Qasr Al Hosn.
Sources: Jayanti Maitra, www.adach.ae
UAE currency: the story behind the money in your pockets
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Quick pearls of wisdom
Focus on gratitude: And do so deeply, he says. “Think of one to three things a day that you’re grateful for. It needs to be specific, too, don’t just say ‘air.’ Really think about it. If you’re grateful for, say, what your parents have done for you, that will motivate you to do more for the world.”
Know how to fight: Shetty married his wife, Radhi, three years ago (he met her in a meditation class before he went off and became a monk). He says they’ve had to learn to respect each other’s “fighting styles” – he’s a talk it-out-immediately person, while she needs space to think. “When you’re having an argument, remember, it’s not you against each other. It’s both of you against the problem. When you win, they lose. If you’re on a team you have to win together.”
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Why are asylum seekers being housed in hotels?
The number of asylum applications in the UK has reached a new record high, driven by those illegally entering the country in small boats crossing the English Channel.
A total of 111,084 people applied for asylum in the UK in the year to June 2025, the highest number for any 12-month period since current records began in 2001.
Asylum seekers and their families can be housed in temporary accommodation while their claim is assessed.
The Home Office provides the accommodation, meaning asylum seekers cannot choose where they live.
When there is not enough housing, the Home Office can move people to hotels or large sites like former military bases.
UAE currency: the story behind the money in your pockets
Explainer: Tanween Design Programme
Non-profit arts studio Tashkeel launched this annual initiative with the intention of supporting budding designers in the UAE. This year, three talents were chosen from hundreds of applicants to be a part of the sixth creative development programme. These are architect Abdulla Al Mulla, interior designer Lana El Samman and graphic designer Yara Habib.
The trio have been guided by experts from the industry over the course of nine months, as they developed their own products that merge their unique styles with traditional elements of Emirati design. This includes laboratory sessions, experimental and collaborative practice, investigation of new business models and evaluation.
It is led by British contemporary design project specialist Helen Voce and mentor Kevin Badni, and offers participants access to experts from across the world, including the likes of UK designer Gareth Neal and multidisciplinary designer and entrepreneur, Sheikh Salem Al Qassimi.
The final pieces are being revealed in a worldwide limited-edition release on the first day of Downtown Designs at Dubai Design Week 2019. Tashkeel will be at stand E31 at the exhibition.
Lisa Ball-Lechgar, deputy director of Tashkeel, said: “The diversity and calibre of the applicants this year … is reflective of the dynamic change that the UAE art and design industry is witnessing, with young creators resolute in making their bold design ideas a reality.”
What can victims do?
Always use only regulated platforms
Stop all transactions and communication on suspicion
Save all evidence (screenshots, chat logs, transaction IDs)
Report to local authorities
Warn others to prevent further harm
Courtesy: Crystal Intelligence
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Company%20profile
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THE DETAILS
Kaala
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