What should you do when you are thinking to end your job? May be, you should get the reward of your service for all these years for a company. The amount of money that a person gets at the end of his job as a reward is called gratuity. There are certain rules to collect your gratuity. You have to be aware of these rules and laws about gratuity collection so that you get the right amount which you deserve. In this article, here we will discuss rules of gratuity calculator UAE and different situations.
Rules of Gratuity Calculator UAE.
Let’s start by knowing the basic rules. In UAE, if you want to end your job in a formal way, you will get gratuity (An amount of money at the end of job). First of all, you should know that gratuity is the right of every employee by the law. When you are thinking to calculate your gratuity pay, the first thing is to know whether you were working on a limited contract or unlimited contract. There are different rules for these two different contracts.
TYPES OF CONTRACTS:
If the contract between the company/employer and the employee is for a limited time i.e, for a fixed time till a certain date and year. In this contract, you cannot officially resign without the consent of the employer. If you resign before the contract’s end, you can get punishment according to the law. However, if a company terminates an employee, he or she is still eligible for the gratuity.
A contract which does not limit a person to a certain fixed time and date, it is unlimited contract. The thing you should keep in mind is issuing a notice, a month or three months before the end of contract. This notice is the responsibility of employee if he/she wants to leave the job. If the company is terminating the contract, they should let the employee know, one or three month before.
As we have discussed these two types of contracts, now focus on the main thing that is rule of gratuity calculator UAE. Here, you should also know that gratuity pay is calculated on the base of your latest salary. Let’s discuss the rules and formulas for gratuity calculation.
GRATUITY CALCULATION FORMULAS FOR LIMITED CONTRACTS:
There is no gratuity for a worker or an employee if he/she leaves the job before one year. Employees who have worked 1-5 years of work will get 21 days of salary per year. For this, a person should divide his most recent salary on 30 to find one day salary.
If a person’s salary is 3000 AED,
then 3000 ÷ 30 = 300
So, his one day salary will be 300 AED. Now you have to multiply it with the total days as per the number of years. Each year will add 21 days to gratuity if a worker has worked one to five years(1-5). Employees who have worked for five years or more than five years, will get 30 days of gratuity as per each year.
GRATUITY CALCULATION OF UNLIMITED CONTRACTS:
If you have not completed one year service, you cannot get gratuity in unlimited contracts also. The formula for unlimited contract is slightly different. If a person have worked between 1-3 years, he or she will get 1/3 of the 21 days gratuity pay. The rule for 3-5 years service in unlimited contracts is 2/3 of 21 days gratuity pay. Person with more than five years experience will get full 21 days gratuity pay.
NOTE: We have added these calculating formulas for your comfort, you should not take it as law. You cannot use it as law reference either. For the exact rules and information, you should contact the MINISTRY OF HUMAN RESOURCE AND EMIRATISATION. Here is the official website which calculate the gratuity.
In addition to this, you should know that UAE Labour Law does not govern the free zones. Every free zone has usually its own rules and labour laws which might be difficult than the above mentioned rules of gratuity calculator UAE.
A REMINDER NOTE:
As you all know, this is not an official site. UAE employment is a plate form which will guide and help you about questions related to UAE law. We compose such articles to help our reader in knowing the information about UAE and the laws in it. As this article describes the information about part time job in UAE, but you are advised to contact the relevant official authorities to confirm the rules and facts. Here is the link of official website. We would like to know your feedback about our article. If you have any question in your mind, do not hesitate to ask. Type it in the comment box or email us at firstname.lastname@example.org. We will response you as soon as possible.