# I was terminated! How to calculate gratuity?



## angie08

Hi! I've googled ways to calculate gratuity in dubai and can't seem to understand it (I'm not soo good with Math ). 

My current company is having some bank problems so they started terminating people. I was one of them. 

I've been working there for two years and five months. My total salary for the first year is 3,000aed and it was upgraded to 4,500aed for the 2nd year til end. 

Can you please help me know the estimate of the gratuity that I will be receiving?

Thanks!!


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## Chocoholic

Gratuity is based on the basic salary, not total salary. I'll try and find a copy of the Labour Law as it's stated in that.

Gratuity is 21 days pay for each year of service under 5 years.

Here you go:

http://www.deg.gov.ae/sitecollectionimages/content/pubdocs/uae_labour_law_eng.pdf

It's on page 37.


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## Gavtek

21 days salary for every year worked, so assuming that your 4500 does not include housing or travel allowances, a rough calculation would be:

AED 4,500 x 2.5 = AED 11,250

However, as most employers here are scum, they'll probably include weekends so it would be:

AED (4,500 x 12) / 365 = AED 147.95 per day x 21 days = AED 3,106.85 per year x 2.5 years = AED 7,767.12

Substitute the AED 4,500 for your base salary if different. Your starting salary is irrelevant.

It should be paid to you with your final salary, the company should ask you to sign a form stating you have received gratuity before they can cancel your visa.


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## angie08

Gavtek said:


> 21 days salary for every year worked, so assuming that your 4500 does not include housing or travel allowances, a rough calculation would be:
> 
> AED 4,500 x 2.5 = AED 11,250
> 
> However, as most employers here are scum, they'll probably include weekends so it would be:
> 
> AED (4,500 x 12) / 365 = AED 147.95 per day x 21 days = AED 3,106.85 per year x 2.5 years = AED 7,767.12
> 
> Substitute the AED 4,500 for your base salary if different. Your starting salary is irrelevant.
> 
> It should be paid to you with your final salary, the company should ask you to sign a form stating you have received gratuity before they can cancel your visa.



Hi! Are there any amounts included? My other colleagues were given 3 months salary for termination and other things as well. I'm not sure if they will do that to me too. Maybe ticket allowance too?


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## -Geek

angie08 said:


> Hi! I've googled ways to calculate gratuity in dubai and can't seem to understand it (I'm not soo good with Math ).
> 
> My current company is having some bank problems so they started terminating people. I was one of them.
> 
> I've been working there for two years and five months. My total salary for the first year is 3,000aed and it was upgraded to 4,500aed for the 2nd year til end.
> 
> Can you please help me know the estimate of the gratuity that I will be receiving?
> 
> Thanks!!


Sorry to hear about your job.

well to calculate your gratuity please refer to this link


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## rsinner

angie08 said:


> Hi! Are there any amounts included? My other colleagues were given 3 months salary for termination and other things as well. I'm not sure if they will do that to me too. Maybe ticket allowance too?


1. Gratuity - this is the legally mandated end of service benefit. The posters above have already told you how to calculate it.
2. Other packages: 3 month salary etc. - the employer is NOT required by law to pay this. But they might do so on a discretionary basis. Try speaking to them about it and tell them how difficult it would be to find a new job etc.
3. Tickets home - In case you need to go back home after termination and not by the reason of another employment in UAE then the employer is required by law to provide this (in the labour law, search for the word repatriation). 

All the best !


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## fcjb1970

rsinner said:


> 1. Gratuity - this is the legally mandated end of service benefit. The posters above have already told you how to calculate it.
> 2. Other packages: 3 month salary etc. - the employer is NOT required by law to pay this. But they might do so on a discretionary basis. Try speaking to them about it and tell them how difficult it would be to find a new job etc.
> 3. Tickets home - In case you need to go back home after termination and not by the reason of another employment in UAE then the employer is required by law to provide this (in the labour law, search for the word repatriation).
> 
> All the best !


Get the ticket, tell them you are returning home.


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## dukeswh

angie08 said:


> Hi! Are there any amounts included? My other colleagues were given 3 months salary for termination and other things as well. I'm not sure if they will do that to me too. Maybe ticket allowance too?



Sorry about your situation.

Regarding the 3 months salary, I believe you can demand this from your company, as under the Labor Law(Article 122) , if you have been terminated with reasons not related to your work, it is considered as "Arbitrary Termination", and your company has to compensate you an amount not more than 3 months of your salary.


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## angie08

rsinner said:


> 1. Gratuity - this is the legally mandated end of service benefit. The posters above have already told you how to calculate it.
> 2. Other packages: 3 month salary etc. - the employer is NOT required by law to pay this. But they might do so on a discretionary basis. Try speaking to them about it and tell them how difficult it would be to find a new job etc.
> 3. Tickets home - In case you need to go back home after termination and not by the reason of another employment in UAE then the employer is required by law to provide this (in the labour law, search for the word repatriation).
> 
> All the best !


Thanks! I asked the HR if he'll give me allowance for plane ticket and he said no. He said I'm on husband's visa so they are not required to give me compensation for ticket. 

But they give the other girl a plane ticket even if she's also on husband's visa. It's unfair sometimes that all of them have the same nationality and I'm the only one who's different.


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## angie08

dukeswh said:


> Sorry about your situation.
> 
> Regarding the 3 months salary, I believe you can demand this from your company, as under the Labor Law(Article 122) , if you have been terminated with reasons not related to your work, it is considered as "Arbitrary Termination", and your company has to compensate you an amount not more than 3 months of your salary.


Thanks dukeswh! My situation is an "Arbitrary Termination", right? So I can tell them about the Article 122 when they don't include the 3months!


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## dukeswh

angie08 said:


> Thanks dukeswh! My situation is an "Arbitrary Termination", right? So I can tell them about the Article 122 when they don't include the 3months!


Yes, you fall in this category. Did you sign a labor contract(Limited, Unlimited, FZ?) with them and got a labor card? If you did, you may go to the Ministry of Labor and file a complaint.


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## Desertrose70

What is the definition of arbitrary termination? what reason the employer has to give for termination?


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## -Geek

Desertrose70 said:


> What is the definition of arbitrary termination? what reason the employer has to give for termination?


I hope this will answer your question What is arbitrary termination | GulfNews.com


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## Desertrose70

-Geek said:


> I hope this will answer your question What is arbitrary termination | GulfNews.com


Thanks Geek. So an employer can terminate an unlimited contract anytime for any reason as made redundant, company downsizing, reorganization etc. and give the employee only a notice of one month? (so no payment of 3 months salary)?


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## saraswat

Desertrose70 said:


> Thanks Geek. So an employer can terminate an unlimited contract anytime for any reason as made redundant, company downsizing, reorganization etc. and give the employee only a notice of one month? (so no payment of 3 months salary)?


In cases of an unlimited contract, and termination being due to work-related issues (like the one's you mentioned) yes, the only thing they would be liable for would be for 1 months pay, and the accrued end of service, leave/vacation pay


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