An end-of-service benefit (EOSB) scheme run by Emirates Airline has been singled out as a good model for all companies that are required to pay such benefits to employees.
A report from the research firm Insight Discovery highlights the carrier's scheme as it warns GCC employers about the burden of mounting employee gratuity bills.
Under UAE law, an end-of-service gratuity is calculated on basic salary for 21 days per annum for the first five years of service and then 30 days' basic salary per annum for each year of service beyond five years of service.
But Emirates has a different scheme for senior workers, called Provident, that operates more like a western company's pension plan.
Under the Provident scheme, which started in 1991, Emirates contributes 12 per cent of an employee's basic salary and the employee must contribute 5 per cent, which is then invested - just as with a pension scheme.
Senior workers are entitled to either the Provident scheme or EOSB, whichever is higher.
If the sum accumulated in the Provident scheme is less than the EOSB entitlement, "perhaps as the result of bad investment performance, Emirates will pay the EOSB", Robert Boston, a manager of human resources at Emirates Group, said in the report.
The Provident scheme, meanwhile, part-finances Emirates' EOSB obligations.
"I believe it has helped with the retention of staff, although there are certain areas where we probably need to further educate people," Mr Boston said.
The Emirates Provident scheme "is transparent and its assets are ring-fenced from those of the company via an offshore trust structure", said Nigel Sillitoe, chief executive at Insight Discovery.
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Test
Director: S Sashikanth
Cast: Nayanthara, Siddharth, Meera Jasmine, R Madhavan
Star rating: 2/5
Ticket prices
General admission Dh295 (under-three free)
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Skewed figures
In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.
The specs: 2018 BMW R nineT Scrambler
Price, base / as tested Dh57,000
Engine 1,170cc air/oil-cooled flat twin four-stroke engine
Transmission Six-speed gearbox
Power 110hp) @ 7,750rpm
Torque 116Nm @ 6,000rpm
Fuel economy, combined 5.3L / 100km
The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
Fitness problems in men's tennis
Andy Murray - hip
Novak Djokovic - elbow
Roger Federer - back
Stan Wawrinka - knee
Kei Nishikori - wrist
Marin Cilic - adductor
Specs
Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
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Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
Key facilities
- 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
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- Disruption Lab and Research Centre for developing entrepreneurial skills
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