“Are severance pay based on an employee’s current salary? “
My current salary is Dh19,500 per month. However, my contract says Dh15,000 and the terms have not been changed to reflect my higher salary. I want now leave work and have served my notice in writing.
We don’t have a human resources professional, so my boss calculates end-of-service pay for all employees. I have been with the company for six and a half years and my salary has increased every year.
My boss says he should use the different salaries for each period to figure out what I owe, but I thought the current salary is used to calculate the end of service. Can you confirm so that I can claim what is owed to me? AS, Sharjah
AS is correct in assuming that the current salary is the figure which should be used to calculate the end-of-service indemnity.
This is clearly stated in Section 134 of the UAE Labor Law, which states: “Without prejudice to the provisions of certain laws on pensions and end-of-career indemnities granted to workers in certain establishments, the end-of-service indemnity is calculated on the basis of the last salary due to workers paid monthly, weekly and for the day … “
“The salary used as the basis for the calculation of the end-of-service allowance does not include the payments made to the worker” in rem “, the accommodation, transport and travel allowances, overtime allowances, representation, cashier’s allowances, child-rearing allowances, recreational and social services allowances, and any other bonuses or allowances.
Latin expression “in rem “is a legal term meaning” against or about a thing “and, in this context, refers to any property or item such as a computer or a car.
AS is entitled to the end-of-service indemnity on his base salary of 19,500 Dh, regardless of the stipulation of the contract. The salary paid each month is proof of this. Unless there are documents indicating that the additional amount is an allowance, it will be considered as base salary.
At the time of any salary increase, correspondence must be issued and signed by the employer and employee confirming the details in order to avoid any future confusion or dispute.
How long does it take for an employer to cancel a work permit after an employee resigns? Can the employee leave without waiting for the cancellation of the work permit? VD, Abu Dhabi
If a person resigns from their job, they are required to give notice in accordance with the terms of their contract.
In most cases, this will be 30 days, as stated in Section 117 of the UAE Labor Law, which states: “Both the employer and the worker may terminate the employment contract for an indefinite period. reasons valid at any time after the conclusion of the contract. contract, after having notified the other party in writing at least 30 days before its termination.
If an employee does not give due notice, he can be penalized, in accordance with article 119, which stipulates: the notifying party will pay to the other party an indemnity called compensatory indemnity for notice, even if this default notice or this reduction of time does not prejudice the other party. This compensation is equal to the worker’s salary for the entire notice period or the reduced part thereof. The notice indemnity is calculated on the basis of the last salary paid to the worker… ”
At the time of any salary increase, correspondence should be issued and signed by the employer and employee confirming the details to avoid future confusion.
Keren Bobker, Senior Partner, Holborn Assets
Once the notice period has expired, the employer must immediately cancel the visa and work authorization and pay the employee all that is owed to him in terms of salary, accumulated annual leave and end-of-service indemnity. The cancellation process is quick and shouldn’t take more than three business days.
The new employer must have applied for a new visa for DV to legally start their new job.
How can I check my employment contract without asking my employer for a copy? I don’t remember the details and want to check the document before I start 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 filed with the Ministry of Human Resources and Emiratization. She can visit the MOHRE website to view and print a copy of her employment contract.
On the website, select the services tab, scroll down to job postings and service contracts. Scroll down to the “My Contract” section and search by transaction number or personal details.
Keren Bobker is an independent financial advisor and senior partner at Holborn Assets in Dubai, with over 25 years of experience. Contact her at [email protected]. Follow her on Twitter at @FinancialUAE
Updated: September 25, 2021 5:00 a.m.