Entitlement For Gratuity

Working in the UAE is better than working anywhere. The UAE Labour Laws really work for the employees in different companies. The most beneficial thing happens to all the employees are that they are entitled to gratuity. As a foreigner, you must be surprised to know about gratuity. The Gratuity in UAE is given to the employees when they leave the job or being dismissed by the employers. 

Yes, it is a token of appreciation given to the employee at the end of their employment in a financial statement. However, it is important for you to know that you are entitled to gratuity. It is calculated on the basis of the employee’s last salary. An employee who has served the company for a year at least is entitled to gratuity. The gratuity does not include allowances or bonuses or extra benefits to the employee. Some companies increase gratuity so that the employees are happy and satisfied after leaving the job from the company. 

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Calculation of Gratuity: 

The calculation of gratuity depends on the length of service done in a company by the employee and also the employment contract type. If the employment contract is unlimited and the employee has served for 1-5 years, then he is eligible to receive one-third of gratuity. However, if the employment contract is limited and the employee leaves before the contractual time period, he will not be rewarded with gratuity. Full gratuity is provided after 5 years of service in the company. 

Moreover, the Gratuity in UAE is subjected to the accumulated amount of two years’ salary, which compensates the employee for serving the company for 25 years. Giving fewer gratuities is against the law. So the employer has to be really careful when he is making calculations to the gratuity. It is better if he clarifies the gratuity situations in the employment contract before the employee could sign. 

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