# Negotiating the gratuity pay?



## Timeport (Apr 2, 2016)

Do you think the gratuity pay can be negotiated to get a better deal than what the law says? I am taking a Deputy General Manager role, and I am wondering if I should just accept the gratuity as per the UAE law.

I would be interested to know the experience of anyone with senior role and managed to negotiate that element.


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## LesFroggitts (Dec 30, 2013)

Timeport said:


> Do you think the gratuity pay can be negotiated to get a better deal than what the law says? I am taking a Deputy General Manager role, and I am wondering if I should just accept the gratuity as per the UAE law.
> 
> I would be interested to know the experience of anyone with senior role and managed to negotiate that element.


Are you referring to the "End of Service Benefit"? If so then I've never heard of this being negotiable.

Or if an actual Gratuity, please explain what it would be for.


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## Timeport (Apr 2, 2016)

Yes, that is what I meant, the end of service benefit. Thanks for answering that it's not common to change it. I wanted to know that.

The notice period though is only 1 month, which I found it little for such a role. 

I am considering asking for longer one, to give me a bit confidence as I am new to the country. Obviously this means longer period for me if I decided to leave too.


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## LesFroggitts (Dec 30, 2013)

Timeport said:


> Yes, that is what I meant, the end of service benefit. Thanks for answering that it's not common to change it. I wanted to know that.
> 
> The notice period though is only 1 month, which I found it little for such a role.
> 
> I am considering asking for longer one, to give me a bit confidence as I am new to the country. Obviously this means longer period for me if I decided to leave too.


Yes, notice period is a two way street. 

Certainly more senior positions have a three month period, your company may allow you this - but for those companies that are not certain/confident in their hiring histories they may well stick with one month as it gives them more flexibility on their side.

Most of our staff are on one month's notice only those at Director level get the three month agreement.


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## Timeport (Apr 2, 2016)

Thanks, I will be asking for 3 months, and see what they say.

That might get accepted as the CEO was insisting that he had a long term view on my employement. We are in the construction business. 

Thanks for the help.


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## Horus_88 (Mar 11, 2014)

As far as I know end of service is calculated based on the basic salary, so you can negotiate basic salary if possible to get a better end of service.
Companies tend to lower basic salary for this reason IMHO


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## sm105 (Jan 9, 2014)

The statutory EOS benefit is fixed which means it cannot be adjusted. However, nothing stops you from negotiating an additional benefit that applies over and above the statutory benefit. Employers and employees are free to fix any compensation scheme that exceeds the minimum standards of the MOL.


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## Minddrift (Apr 1, 2016)

I'm not an expert, but I came across this in an article about UAE Labor Law and thought it might interest you: 

"The Labor Law provides that an employer or employee wishing to terminate a contract concluded for an unspecified term, should give to the other party 30 days written notice. However, the notice period may exceed 30 days if the parties have so agreed in the employment contract and it is common in employment contracts in the UAE, especially for employees in more senior positions. The employment contract will be valid throughout the notice period and will terminate only upon the expiry of the agreed notice period. The employee is entitled to full pay during the notice period and is required to continue working throughout this period should the employer request, although this is not always the case. If an employer fails to give the employee notice of termination, or reduces the period of notice, the employer will have to pay the employee compensation equal to the employees remuneration in respect of the entire period of notice or the time by which it was reduced, even where no prejudice has been sustained by the employee. It is prohibited to terminate an employee or serve him a notice of termination while he is on leave."


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## Balla Boy (Jan 3, 2015)

Timeport said:


> Do you think the gratuity pay can be negotiated to get a better deal than what the law says? I am taking a Deputy General Manager role, and I am wondering if I should just accept the gratuity as per the UAE law.
> 
> I would be interested to know the experience of anyone with senior role and managed to negotiate that element.


End of Service is calculated based on your basic, so it's only negotiable in that you can negotiate to up the basic component of your salary vs the housing, communications, transport elements (which companies here generally use only to reduce their exposure to EOS, as far as I can see). 

Definitely push for three months notice. Finding a new job here if you end up moving is a pretty drawn out process, with visas needing to be resubmitted etc. 4 weeks notice isn't enough to manage that transition if you find yourself having to move on.


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## rsinner (Feb 3, 2009)

My employer pays one month salary for every year worked (versus 7/21 days etc that the labour law requires). So of course it depends on the company and what you negotiate. The labour law only specifies the minimum as someone else said. It is not unusual for senior executives to have long garden leaves and payouts.


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## Horus_88 (Mar 11, 2014)

rsinner said:


> My employer pays *one month salary* for every year worked (versus 7/21 days etc that the labour law requires). So of course it depends on the company and what you negotiate. The labour law only specifies the minimum as someone else said. It is not unusual for senior executives to have long garden leaves and payouts.


even after one year only of service ?
That is a good company


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## rsinner (Feb 3, 2009)

successcre8or said:


> even after one year only of service ?
> That is a good company


Yes.

We are not getting bonuses. Or pay increases. Benefits have been cut. Some components of variable pay have been cut. Mass layoffs.
But yes, they do give one month as EOSB.

The HR has not yet realised that the EOSB is higher than the legally mandated minimum. Then they will cut it


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