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If the employment term is less than 3 yeas for how many days gratuity will be calculated under UAE laws? A-7 days B-14 Days C-21 Days D-30 Days

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Question added by Muhammad Fiaz , GROUP MANAGER ACCOUNTS, FINANCE AND TAX , SMPL Group of Companies
Date Posted: 2014/06/19
Khaja Khaleeque Ahmed
by Khaja Khaleeque Ahmed , Senior Accountant , M/s. Saudi Metal Ceilings Manufacturing Co. Ltd

As per Dubai Law 21 days

As per saudi Law 15 days

AFSAL ANSARI
by AFSAL ANSARI , Accountant , Hindustan

LABOUR LAW 36/2012

 

Article (116) A worker who is not subject to the provisions of the Social Insurance Law shall be entitled upon the termination of his employment to a leaving indemnity at the rate of half month’s wage for each of the first three years of employment and one month’s wage for each of the following years in service. A worker shall be entitled to receive his leaving indemnity for fractions of the year in proportion to the period spent in the employer’s service.

 

The calculation of leaving indemnity under the New Labour Law would be the same irrespective of who terminated or why the employment relationship was terminated.

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