End of service gratuity pro rata for Dubai part-timer

I have worked for my current company for a little over three years and have handed in my notice. The role has always been part-time, working 20 hours per week on an unlimited contract, but I am leaving the UAE early next year. I have now been told that as the position is part-time I am not entitled to receive any gratuity when I leave. Is this correct? SH, Dubai

The contracted hours that someone works does not affect the general entitlement to receive an end of service gratuity as set out in UAE Labour Law. An employee who has completed a full year of service should be paid their gratuity at the date of leaving based on their basic salary. Standard payment is 21 days’ pay for each year of service, calculated pro-rata, but as SH has resigned and worked between three and five years, the amount payable is reduced by one-third, per Article 137 of the law.

Keren Bobker is an independent financial adviser with Holborn Assets in Dubai, with over 20 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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