Question: I have been with my employer for about two years and they have now advised that they plan to introduce a pension-type scheme for all employees in place of the usual end-of-service gratuity.
The set-up is that they pay into some kind of investment and we can also pay in voluntarily.
They plan to start this from January 2024 but I don’t want to join as it seems to be best for employees who stay with them for many years. My plan is to leave in mid-2024 and return to my home country.
My employer has no idea of my plans and I want that to remain private. Will I have to join this scheme rather than continue as things are at the moment? MF, Abu Dhabi
Answer: There are a number of large mainland companies that offer an alternative to the standard gratuity scheme and the Dubai International Financial Centre, which has its own legislation, set up Dews (DIFC Employee Workplace Savings) as an alternative to a gratuity in 2020.
Watch: UAE launches new gratuity scheme
Such schemes for mainland and free zone employers should not be compulsory and legislation stated that no employee should be any worse off if they joined a savings scheme as an alternative to the end-of-service gratuity. Dews is compulsory for DIFC employees.
There has also been an announcement that the UAE government will introduce an optional savings plan for all private sector employees. There is no time frame for this yet and we don’t have any other details.
Under the old labour law, there was a specific clause related to alternatives that said no employee should be disadvantaged if they were a member of an alternative arrangement and that it would be optional.
Under the new labour law, Federal Decree Law No.33 of 2021, which came into effect in February 2022, no mention is made of alternative arrangements to the end-of-service gratuity.
My understanding is that any existing arrangement would continue to be recognised in the same way.
Use this tool to calculate your gratuity pay
Given the recent announcement, it may be that the introduction of alternatives has been planned for some time.
With this in mind, I would be surprised if many employers proceed with setting up an employee savings plan until such time as we have full details of the new government-supported alternative scheme. Indeed, that may not be permitted.
We have been advised that there will be a number of investment options, including one that is described as “risk free” and will fully protect the capital invested.
Assuming MF’s employer proceeds with a new arrangement, this could be an option for him to protect the amount invested but joining is described as optional, so he should be able to continue accruing the end-of-service gratuity as he does now.
Q: I joined a company last month and my visa was processed. After 14 days, I was given a termination letter and they will be cancelling my visa soon.
My contract says I have to work a 14-day notice period, but is there a problem if I don’t?
I did a handover on the same day I received the letter so that the company can consider that as my last working day.
When I checked with HR, I was told not to serve the notice period and I sent an email with this information and left the office. Will this be a problem?
Does my new employer have to pay any visa charges if I join them within three months? AJ, Dubai
A: AJ was given the correct amount of notice in accordance with Article 9 of the UAE labour law, which refers to the probationary period.
During the probationary period, “the employer may terminate the service of the worker during this period after notifying the latter of the same in writing 14 days at least before the date specified for the termination of service”, Article 9 states.
Whether an employee undertakes any work during this time is at the discretion of the employer.
If a person has been with a company for such a short period, it is not unusual for the employer to decide that there is no point in the employee working and may tell them not to come to work. However, that is the decision of the employer.
An individual will generally remain employed until the end of the notice period and will be paid for these days. The visa should be cancelled after this time unless both parties agree to do so sooner. This must be agreed by both the employer and the employee.
In accordance with the new labour law, if an employee leaves service during the probationary period, the new employer may have to provide some form of compensation, but this is not the case here.
As the current employer terminated the contract, no compensation is payable to the next employer.
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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- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
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National Editorial: Suleimani has been killed, now we must de-escalate
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The National Editorial: Is there much to celebrate on International Women's Day 2021?
Justin Thomas: Challenge the notion that 'men are from Mars, women are from Venus'
Killing of Qassem Suleimani
National Editorial: Suleimani has been killed, now we must de-escalate
Mina Al Oraibi: Air strike casts a long shadow over the decade ahead
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Damien McElroy: A CEO tasked with spreading Iran's influence
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- Con Coughlin: Choice of the British people will be vindicated
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Tips for job-seekers
- Do not submit your application through the Easy Apply button on LinkedIn. Employers receive between 600 and 800 replies for each job advert on the platform. If you are the right fit for a job, connect to a relevant person in the company on LinkedIn and send them a direct message.
- Make sure you are an exact fit for the job advertised. If you are an HR manager with five years’ experience in retail and the job requires a similar candidate with five years’ experience in consumer, you should apply. But if you have no experience in HR, do not apply for the job.
David Mackenzie, founder of recruitment agency Mackenzie Jones Middle East
Tomorrow 2021
War and the virus
Simon Rushton: War vet raises £12m for health workers
Banned items
-
Drones
-
Animals
-
Fireworks/ flares
-
Radios or power banks
-
Laser pointers
-
Glass
-
Selfie sticks/ umbrellas
-
Sharp objects
-
Political flags or banners
-
Bikes, skateboards or scooters
The candidates
Dr Ayham Ammora, scientist and business executive
Ali Azeem, business leader
Tony Booth, professor of education
Lord Browne, former BP chief executive
Dr Mohamed El-Erian, economist
Professor Wyn Evans, astrophysicist
Dr Mark Mann, scientist
Gina MIller, anti-Brexit campaigner
Lord Smith, former Cabinet minister
Sandi Toksvig, broadcaster
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
Our commentary on Brexit
- Alistair Burt: Despite Brexit, Britain can remain a world power
- Sam Williams: Departure is influenced by its sense of place
Tonight's Chat on The National
Tonight's Chat is a series of online conversations on The National. The series features a diverse range of celebrities, politicians and business leaders from around the Arab world.
Tonight’s Chat host Ricardo Karam is a renowned author and broadcaster who has previously interviewed Bill Gates, Carlos Ghosn, Andre Agassi and the late Zaha Hadid, among others.
Intellectually curious and thought-provoking, Tonight’s Chat moves the conversation forward.
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Comment on Coronavirus
If you go...
Flying
There is no simple way to get to Punta Arenas from the UAE, with flights from Dubai and Abu Dhabi requiring at least two connections to reach this part of Patagonia. Flights start from about Dh6,250.
Touring
Chile Nativo offers the amended Los Dientes trek with expert guides and porters who are met in Puerto Williams on Isla Navarino. The trip starts and ends in Punta Arenas and lasts for six days in total. Prices start from Dh8,795.
While you're here
The National Editorial: The fragile future of jobs in the Middle East
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Tomorrow 2021
More from Neighbourhood Watch:
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.”
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• The National announces Future of News journalism competition
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Sergio Garcia, Jason Day, Zach Johnson (4.04pm)
Rickie Fowler, Paul Casey, Adam Scott (4.26pm)
Dustin Johnson, Charl Schwartzel, Rory McIlroy (5.48pm)
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The specs: 2018 Genesis G70
Price, base / as tested: Dh155,000 / Dh205,000
Engine: 3.3-litre, turbocharged V6
Gearbox: Eight-speed automatic
Power: 370hp @ 6,000rpm
Torque: 510Nm @ 1,300rpm
Fuel economy, combined: 10.6L / 100km
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FA Cup final
Chelsea 1
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Man of the match: Eden Hazard (Chelsea)
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Director: Mowaffaq Alobaid
Stars: Abdulaziz Almadhi, Mohammed Al Akkasi, Ali Al Suhaibani
Rating: 4/5
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- Con Coughlin: Choice of the British people will be vindicated
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Damien McElroy: Anti-science attitudes in America are proving lethal
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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
If you go
The flights
Emirates flies from Dubai to Seattle from Dh5,555 return, including taxes.
The car
Hertz offers compact car rental from about $300 (Dh1,100) per week, including taxes. Emirates Skywards members can earn points on their car hire through Hertz.
The national park
Entry to Mount Rainier National Park costs $30 for one vehicle and passengers for up to seven days. Accommodation can be booked through mtrainierguestservices.com. Prices vary according to season. Rooms at the Holiday Inn Yakima cost from $125 per night, excluding breakfast.
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yallacompare profile
Date of launch: 2014
Founder: Jon Richards, founder and chief executive; Samer Chebab, co-founder and chief operating officer, and Jonathan Rawlings, co-founder and chief financial officer
Based: Media City, Dubai
Sector: Financial services
Size: 120 employees
Investors: 2014: $500,000 in a seed round led by Mulverhill Associates; 2015: $3m in Series A funding led by STC Ventures (managed by Iris Capital), Wamda and Dubai Silicon Oasis Authority; 2019: $8m in Series B funding with the same investors as Series A along with Precinct Partners, Saned and Argo Ventures (the VC arm of multinational insurer Argo Group)
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Name: Hassan Mohsen Elhais
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Group A: Palmeiras, Porto, Al Ahly, Inter Miami.
Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.
Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.
Group D: Flamengo, ES Tunis, Chelsea, (Leon banned).
Group E: River Plate, Urawa, Monterrey, Inter Milan.
Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.
Group G: Manchester City, Wydad, Al Ain, Juventus.
Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.
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The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
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Dos
- Wear the right fabric for the right season and occasion
- Always ask for the dress code if you don’t know
- Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work
- Wear 100 per cent cotton under the kandura as most fabrics are polyester
Don’ts
- Wear hamdania for work, always wear a ghutra and agal
- Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
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THE BIO
Family: I have three siblings, one older brother (age 25) and two younger sisters, 20 and 13
Favourite book: Asking for my favourite book has to be one of the hardest questions. However a current favourite would be Sidewalk by Mitchell Duneier
Favourite place to travel to: Any walkable city. I also love nature and wildlife
What do you love eating or cooking: I’m constantly in the kitchen. Ever since I changed the way I eat I enjoy choosing and creating what goes into my body. However, nothing can top home cooked food from my parents.
Favorite place to go in the UAE: A quiet beach.
more from Janine di Giovanni
ARABIAN GULF LEAGUE FIXTURES
Thursday, September 21
Al Dahfra v Sharjah (kick-off 5.35pm)
Al Wasl v Emirates (8.30pm)
Friday, September 22
Dibba v Al Jazira (5.25pm)
Al Nasr v Al Wahda (8.30pm)
Saturday, September 23
Hatta v Al Ain (5.25pm)
Ajman v Shabab Al Ahli (8.30pm)
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
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COMPANY%20PROFILE
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Engine: 2.0-litre 4cyl turbo
Power: 261hp at 5,500rpm
Torque: 405Nm at 1,750-3,500rpm
Transmission: 9-speed auto
Fuel consumption: 6.9L/100km
On sale: Now
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RESULT
Chelsea 2
Willian 13'
Ross Barkley 64'
Liverpool 0
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