Calculating your end-of-service (gratuity) pay is important and knowing as well as understanding how the total sum is reached will help you identify any errors made by your company.
In the UAE, depending on industry, education, and experience, there are different types of contracts offered to potential employees.
A limited or fixed term contract is where the employee agrees to stay with the company for a certain number of years with a set end date.
An unlimited contract has no such period clause or number of years, and therefore, has no end date. However, a notice period of one to three months is applicable for termination of contract from either side.
At the end of your service, unless you resigned before the end of your contract, you are normally entitled to an end-of-service pay.
This calculator will tell you exactly how much end-of-service pay you should receive in the UAE
Gratuity pay is calculated based on the most recent salary paid into your account without allowances and/or bonuses.
To find out more about end-of-service (gratuity) pay, you can review Article 134 of the UAE's Labour Law to get clarification on what this constitutes.
If you are terminated from your job, unless you break the rules as stated in Article 139 of the Labour Law, the employee is still entitled to gratuity pay.