# visa transfer & end of service gratuity



## lookingforsmth (Nov 23, 2010)

dear HR professionals.
i've worked for one company (X) for a year. the company was a sister company of a bigger one (Y). both have the same sponsor, same management. now they are going to close down the company X and transfer me to the company Y. they said that rather than canceling my visa and opening a new one they will do the visa transfer (which, according to them, should be faster and easier).
the companies are not in free-zones
the current contract is unlimited

the questions are:
1. what is the real difference between the two processes: canceling the current visa and opening a new one vs. visa transfer?
2. in case of transferring what happens to my end of service gratuity?


----------



## Gavtek (Aug 23, 2009)

If they don't pay you gratuity now, they'll screw you out of it later most likely. Although it's difficult to give it to you now because the actual final amount will depend on whether you resign or not.

We recently moved from JAFZA to DMCC which meant cancelling our visas and getting new ones, but instead of settling gratuities, we all signed contract amendments stating our original start dates and that no gratuity was paid from this date, and it will be used as the start date when gratuity does become payable.

I'd demand a similar contract amendment from company Y if I were you.

We also need to get new Emirates ID cards because in the eyes of the local government, I now work for a different company (we had to "close" the JAFZA company and register a "new" company in DMCC).


----------



## katiepotato (Apr 29, 2008)

You can transfer from onshore to onshore company, or from free zone to free zone - but not from one to the other. 

Visa transfer is a much more straightforward process than cancellation and re-stamping. You do not have to exit the country or go for a medical test; the remaining validity of your current visa simply transfers to the new sponsor. This should be made even more straightforward by the fact that the same sponsor covers both companies. 

However, the transfer form is likely to include a statement that you have received all dues from your previous employer and have no claims to make against them. This would typically be taken to mean that you have received your end of service gratuity. Therefore, as Gavtek suggests, I would strongly recommend having a statement in your new contract showing your start date with company X, stating that your service will be classed as continuous, that you have not received any end of service gratuity prior to the transfer and that when paid, your end of service gratuity will be calculated from your original start date.

Good luck


----------



## lookingforsmth (Nov 23, 2010)

thank you very much, Gavtek and katiepotato.. this info is really helpful..


----------



## BedouGirl (Sep 15, 2011)

If you do a search on visa ban you will see a thread I subscribed to which includes a useful link added by one of the moderators even though the ban is not an issue for you but please be aware transfers no longer exist, or so it was explained to me, your visa would now need to be cancelled and a new visa issued. Suggest you go back and check with your HR department.


----------

