Details of severance benefits for an expatriate

Details of severance benefits for an expatriate who has completed more than one year as a full-time employee of a company in the UAE.

On completion of the prescribed notice period, an employee is entitled to salary and cash allowance based on basic pay for annual leave.

The Labor Act states that an employee is entitled to gratuity if he has completed one or more years of service. This is in accordance with Article 51(2) of the Labor Act.

Twenty-one working days' pay for each of the first five years of service. Thirty working days' salary shall be paid in each subsequent year.

Once an employee is terminated, he is eligible for encashment of the unused annual leave. According to Article 19(2) of Cabinet Resolution No. 1 of 2022, "Subject to the provisions of Sections 8 and 9 of Article 29 of the Labor Law, an employee shall be paid upon termination of service. Cash allowance for the balance of annual leaves legally due according to the basic salary."

An employee is entitled to repatriation expenses upon termination. This is according to Article 13(12) of the Labor Law, "If the employee does not join another employer, bear the cost of repatriating the employee to his wages or any other mutually agreed point.

An employer is obliged to provide an experience certificate to an employee upon termination of the contract. At the employee's request, issue a free end-of-service certificate specifying the commencement of service at the end of the term of the employment contract, termination dates, the total period of service, location or nature of work, final wages, and the reason for termination of the employment contract. The certificate does not include anything harmful or detracting from the reputation of the employee.

This can be considered arbitrary if the employer dismisses the employee without a valid reason. If your employer has dismissed you without giving the specified notice period, you are entitled to pay in lieu of the notice period

Provisions of Federal Decree-Law No. 33 of 2021 on the Regulation of Labor Relations ('Labor Law') and Cabinet Resolution No. 1 of 2022 on the Implementation of Federal Decree-Law No. 20213.  The Labor Relations Regulation ('Cabinet Resolution No. 1 of 2022') applies.