Severance
pay uae labour law Meaning, calculation, eligibility and definition -Severance
payment UAE, Dubai, Abudhabi, sharjah. What UAE labour Law mentioned about
Severance Pay?
Article 132 UAE
labour Law Severance Pay Meaning, Definition, Calculation and Eligibility
Article
132 UAE labour Law Severance Pay Meaning Calculation and Eligibility. A worker
who has completed one or more years of continuous service shall be entitled to
severance pay at the end 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:
1.
21 days' wage for each of the first five
years of service.
2.
30 days’ wage for each additional year of service provided always that the
aggregate amount of severance pay should not exceed two year's wage.
Article 133 UAE
labour Law Severance Pay Eligibility
Article
133 UAE labour Law Severance Pay Eligibility. A worker shall be entitled to
severance pay for any fraction of a year he actually served, provided that he
has completed one year of continuous service.
Article 134 UAE
labour Law Severance Pay Calculation and Period
Article
134 UAE labour Law Severance Pay Calculation and Period. Without prejudice to
the provisions of laws that grant pensions or retirement benefits to employees
in certain firms, severance pay shall be calculated on the basis of the wage
last due for monthly, weekly and daily paid workers, and on the basis of the
average daily wage referred to in Article 57 hereof for those paid on
piecemeal. The wage used as a basis for calculating severance pay shall not
include whatever is given to the worker in kind, housing allowance, transport
allowance, travel allowance, overtime pay, representation allowance, cashier’s
allowances, children education allowance, allowances for recreational and
social facilities, and any other bonuses or allowances.
Article 135 UAE labour Law Severance pay in
Advance
Article
135 UAE labour Law Severance pay in Advance. An employer may deduct any amounts
owed to him by a worker from the latter's severance pay.
Article 136 UAE
labour Law severance
payment
Article
136 UAE labour Law severance payment. For the
purposes of Article 132, no severance pay shall accrue for the employment cases
that preceded the enforcement of this Law except where the worker is a
National. This, however, shall be without prejudice to any rights acquired by
the worker under the repealed labour laws, the employment contract, or under
any agreement, regulations or work rules of the firm. In the event of the
worker's death, his severance pay shall be paid to his legal heirs.
Article 137 severance
pay meaning and calculation for indefinite contract
Article
137 severance pay meaning
and calculation for indefinite contract. Where a worker under an
indefinite term contract abandons his work at his own initiative after a
continuous service of not less than one year and not more than three years, he
shall be entitled to one-third of the severance pay provided for in the
preceding article. Such a worker shall be entitled to two thirds of the said
severance pay if his continuous service exceeds three years up to five years,
and to the full severance pay if it exceeds five years.
Article 138 severance
pay uae labour law and
calculation for limited contract
Article
138 severance pay uae
labour law and calculation for limited contract. Where a
worker under a definite term contract abandons his employment at his own
initiative before the expiry of his contract period, he shall not be entitled
to severance pay unless his continuous period of service exceeds five years.
Article 139 severance
pay UAE labour law Cancellation or Ineligibility
Article
139 severance pay UAE
labour law Cancellation or Ineligibility. A worker shall forfeit
entitlement to his entire severance pay in any of the following two cases:
1.
If he is dismissed from service for any of the reasons specified in Article 120
hereof or if he abandons his employment in order to avoid being dismissed in
accordance with that Article.
2.
If he abandons his employment of his own accord, otherwise than in either of
the two cases specified in Article 121 hereof, without notice (in the case of
indefinite term contracts) or before completing five years of continuous
service (in case of definite term contracts).
Article 140 severance
pay UAE labour law and provident
fund
Article
140 severance pay UAE
labour law and provident fund. Where a firm has a provident fund for the workers
and the rules of the fund stipulate that whatever the employer pays into the
fund for the worker's account is in discharge of his legal obligation in
respect of severance pay, the worker shall be paid the savings balance in his
account or the severance pay due under the Law, whichever is the greater. Where
the rules of the fund do not stipulate that the amounts paid by the employer
are in discharge of his legal obligation toward the severance pay, the worker
shall receive whatever is due to him in the provident fund in addition to the
statutory severance pay.
Article 141 severance
pay UAE labour law and Retirement pension
Article
141 severance pay UAE
labour law and Retirement pension. Where a firm has a retirement, insurance or
a similar scheme, a worker who is entitled to a retirement pension may opt for
treatment under the said pension or severance pay or under the pension or
insurance scheme, whichever is more advantageous to him.