Determining the maximum limit for end of service benefits for employees in the private sector in the UAE
The Ministry of Human Resources and Emiratisation in the United Arab Emirates has set the maximum end of service benefits for employees in the private sector.
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End of service benefits in the UAE
The Ministry of Human Resources and Emiratisation confirmed that the entitlement of a worker or employee who works full-time for any establishment in the private sector to an end-of-service gratuity upon leaving work or ending his service is conditional on completing at least one year of “continuous” work, explaining that the days of the employee’s absence from Work without pay is not included in the calculation of the period of service.
Cases of preventing the employee from giving end of service benefits
She clarified that if the worker worked with the employer for less than a year, he is not entitled to any end-of-service gratuity.
The amount of calculating the end of service reward
Whereas, if the worker's service period is less than five years, he is entitled to a reward equivalent to 21 days' wages for each year of service.
If the worker's service period exceeds five years, he is entitled to 30 days' wages for each year that exceeds the first five years.
The maximum limit for calculating end of service benefits
The maximum bonus pool should not exceed two years combined wages.