Labor law in UAE, about the severance pay – gratuity pay -.

Article No. 132 of the Federal Labour Law No. 8 of 1980 states the following: “A worker who has completed a period of one or more years of continuous service shall be entitled to severance pay on the termination of his employment. The days of absence from work without pay shall not be included in calculating the period of service. The severance pay shall be calculated as follows: 21 days’ remuneration for each year of the first five years of service and 30 days’ remuneration for each additional year of service provided that the aggregate amounts of service pay shall not exceed two year’s remuneration.”


The NOC from employer

As for no-objection certificate to transfer to a new sponsorship, employee will not require such a certificate as per the Ministry of Labour rules if the employee completed two years or more in service, if not we advice employee to get permission from its employer.


The right for transfer to another employer for labor contracts for limited period

If an employee terminates the employment contract before maturity date, this termination will be against the Labour Law and he will not be entitled to his labour dues except for the leave dues. Further, the questioner might be requested to compensate the employer if proved that the employer has been affected from the termination of contract. The employer has the right to request the Ministry of Labour to impose a one-year ban on the questioner which shall be irrevocable unless the same employer requests to do so. Finally, the employee is not obliged by the UAE labour law to give the employer one-month notice in case he has decided to submit his resignation and leave the work as long as his labour contract is for a limited period.