# Redundant!



## Dusty (Aug 31, 2008)

Hi Everyone,
Unfortunately I was handed my notice of contract termination by my employer last week. My intention is to go back to the UK and allowing for my notice period of three months I will be almost exactly 2½ years through my 3 year contract period when I leave in mid-April. I assume I am not unusual from most other folk in so far as I had not spent much time prior to being made redundant actually researching what this might mean for me and understanding exactly how the gratuity and compensation package would work. Now that I’ve had some time to look at my situation, I thought I'd put a few thoughts and queries out there to see if anyone could offer some input and to maybe enlighten me and others like myself who had not considered these things previously.

Gratuity Calculation:
As I believe is standard, I have accrued gratuity of 21 days pay per year for each of my 2½ years service. I have no problem with my employers calculation of the days accrued but I am interested in peoples thoughts on how the “day rate” should be calculated as I have found no specific details regarding this calculation within UAE labour Law other than it should be based on my basic salary (and should not include housing, transport, school, fees etc). My initial thought was that my annual basic salary should be divided by 52 weeks and then again by 5 days (in line with my contracted 5 day working week; Sun to Thu). However my employer has taken my annual basic salary and divided this by 365 days resulting in a lower “daily rate”. Does anyone have any insight in to what is the correct calculation and if this is stipulated somewhere within UAE labour law?

Article 115 – Compensation
The main issue I have encountered as a result of my being made redundant is with regard to the lease on my apartment. In accordance with the terms of the lease I must give my landlord two months notice of my intention to vacate the apartment early. This is no problem based on my 3 month notice period however in addition to this I will be penalized an additional 2 months’ rent (from date I actually leave the apartment) due to me leaving only 6 months through the lease period. I noticed Article 115 where it states that where an employer breaks a definite term contract that they are required to compensate the worker for any damages sustained. In my book this means that my employer is liable for the 2 months rent charges my landlord will impose. I have raised this with our HR manager who gave me a very long winded broken English answer that I have interpreted as “no we are not liable for these charges”. Again I would be grateful if anyone had any views on this situation.

Thanks in advance for any insight or assistance that anyone can offer.


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## Gavtek (Aug 23, 2009)

I know when we calculate gratuity we divide the annual basic salary by 365 days multiplied by 5 and divided by 7 as we don't get paid for weekends. Doesn't say in the law the correct method of calculation however, unless I have a summarised copy of the law.

With regards to the compensation, whether you can successfully argue for that in your favour or not, I will eat a hat of your choosing if you get it paid to you.


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## furryboots (Jul 31, 2009)

I have experience of two companies and both calculate gratuity by dividing the the annual salary by 365.

Regarding the number of days, have a read of this:

Gratuity calculation in Dubai

Best of luck.


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## Fatenhappy (Jun 23, 2009)

Dusty said:


> Hi Everyone,
> Unfortunately I was handed my notice of contract termination by my employer last week. My intention is to go back to the UK and allowing for my notice period of three months I will be almost exactly 2½ years through my 3 year contract period when I leave in mid-April. I assume I am not unusual from most other folk in so far as I had not spent much time prior to being made redundant actually researching what this might mean for me and understanding exactly how the gratuity and compensation package would work. Now that I’ve had some time to look at my situation, I thought I'd put a few thoughts and queries out there to see if anyone could offer some input and to maybe enlighten me and others like myself who had not considered these things previously.
> 
> Gratuity Calculation:
> ...


Seems this is sort of becoming an epidemic on the forum ... and also since 5th Jan also includes myself !

Try this word for word under UAE Labor Law ....


*Article 115*

Where an employment contract is for a definite term and the employer revokes it for reasons other than those specified in Article (120) he shall be required to compensate the worker for any damage the latter sustains, provided that the amount of compensation shall in no case exceed the aggregate wage due for a period of three months or the remaining period of the contract, whichever is shorter, unless otherwise stipulated in the contract.

*Article 120*

An employer may dismiss a worker without notice if and only if the worker:
a.	Assumes a false identity or nationality or submits forged certificates or documents.
b.	Is engaged on probation and is dismissed during or at the end of the probationary period;
c.	commits a fault resulting in substantial material loss to the employer, provided that the latter notifies the labour department of the incident within 48 hours of his becoming aware of its occurrence;
d.	disobeys instructions on the safety of work or workplace, provided that such instructions are in writing and posted at a conspicuous place and are communicated verbally to the worker, in case he is illiterate;
e.	defaults on his basic duties under the contract and fails to redress such default despite a written interrogation and a warning that he will be dismissed if such default is repeated;
f.	is finally convicted by a competent court of a crime against honour, honesty or public morals
g.	reveals any confidential information of his employer;
h.	is found in a state of drunkenness or under the influence of a narcotic drug during working hours;
i.	assaults the employer, the manager in charge or any of his workmates during working hours; or
j.	absents himself from work without a valid reason for more than 20 non-successive days in one single year, or for more than seven successive days.


Hope ths helps and ... good luck ....:confused2:

Where I come from ..... you look a man (woman) in the eye .... shake their hand and that is gold ... deal done .... but not here !

So again .... someone please remind me why I want to leave this S**t Hole !


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