‘Are the termination benefits based on an employee’s current salary?’


My current one salary is 19,500 Dh per month. However, my contract says 15,000 Dh and the terms have not been changed to reflect my higher salary. I want now quit the job and sent my notice of termination in writing.

We don’t have a recruiter, so my boss calculates the tip at the end of the shift for all employees. I’ve been with the company for six and a half years and mine salary has increased every year.

My boss says he needs to use the different salaries for each period to calculate what I’m due, but I thought the current salary is used to calculate that End of services. Can you confirm this so that I can assert my claims? AS, Sharjah

AS rightly assumes that the current salary is the amount that must be used as the basis for calculating the benefit upon termination of the employment relationship.

This is clearly stated in Article 134 of the UAE Labor Code, which states: “Without prejudice to the provisions of certain laws on pensions and retirement benefits granted to employees in certain establishments, the termination severance payment is calculated on the basis of the last wage paid monthly, weekly and daily to employees …”

“The wages on which the calculation of the pension is based does not include any payments in rem to the employee, housing, transport and travel allowances, overtime allowances, substitution allowances, cashier allowances, child-rearing allowances, allowances for leisure and social services and any other bonuses or allowances.”

The Latin sentencein rem ”is a legal term meaning“ against or about something ”and in this context refers to any property or object such as a computer or a car.

AS is entitled to a bonus on termination of the employment relationship on the basic salary of Dh19,500, regardless of what is in the contract. The monthly salary paid is proof of that. Unless there are papers showing that the additional amount is an allowance, it is considered the base salary.

At the time of a raise, correspondence should be drawn up and signed by both employer and employee to confirm the details to avoid future confusion or disputes.

How long does it take for an employer to revoke a work permit after an employee leaves their job? Can the employee leave without waiting for the work permit to be revoked? VD, Abu Dhabi

If someone leaves the employment relationship, he is obliged to terminate according to the terms of the contract.

In most cases, this is 30 days under Article 117 of the UAE Labor Code, which states: “The employer and employee can terminate the employment contract for an indefinite period for valid reasons at any time after the employment contract has been entered into, after notifying the other party in writing at least 30 days before it ends. “

If an employee does not dismiss, he can be punished according to Article 119, which states: “If the employer or employee fails to notify the other party of the termination of the contract or if the latter shortens the notice period, the notifying party must pay the other party a so-called severance payment, even if the omission or shortening of the deadline does not harm the other party. This compensation corresponds to the employee’s wages for the entire notice period or for a reduced part of it. The severance payment is calculated on the basis of the last wage paid to the employee … “

At the time of a raise, both the employer and the employee must write and sign correspondence confirming the details to avoid future confusion

Keren Bobker, Senior Partner, Holborn Assets

After the notice period has expired, the employer must immediately cancel the visa and the work permit and pay the employee all salary payments to which he is entitled, the annual vacation incurred and any severance payments upon termination of the employment relationship. The cancellation process is quick and shouldn’t take longer than three working days.

The new employer must have applied for a new visa for VD in order to be able to legally start his new job.

How can I check my employment contract without asking my employer for a copy? I can’t remember the details and want to review the document before looking for a new job. WT, Abu Dhabi

WT has confirmed that she works for a mainland employer, so a copy of her contract will be deposited with the Ministry of Human Resources and Emiratisation. She can visit them MOHRE website to view and print out a copy of their employment contract.

On the website, select the Services tab, scroll down to Vacancies and Contract Services. Scroll further down to the “My Contract” section and look for either a transaction number or personal information.

Keren Bobker is an independent financial advisor and senior partner at Holborn Assets in Dubai with over 25 years of experience. Contact them at [email protected]. Follow her on Twitter at @FinancialUAE

Updated: September 25, 2021 at 5:00 a.m.

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