Dubai Forums Dubai Expat Forums Dubai Expat Help Forum

Hi,

Some of this might sound a bit naive, so I apologise in advance.

I am employed by a british company at their branch office in dubai.

I have a contract which was drawn up in the uk which states my salary (in sterling 27k per annum) and contract duration 12 months as well as 60K aed accomodation and monthly car allowances etc.

When I got to dubai I went through all the visa process, happily signing papers etc without paying too much atention as I figured that the over riding document was UK contract.

However on closer inspection I notice that the UAE labour contract states my salary as only 8000 AED per month and that the contract is of unlimited duration.

I am being paid the full amount monthly into my UK bank account so no problems there.

However I am now considering leaving and have heard about the gratuity payments. I think my company are unaware of this so they might be a bit surprised when I request 1 months salary at the end of the 12 months. My worry is that they will only need to pay me 8000 aed when really I should get closer to 16000.

Also I wonder why the contract says unlimited when clearly there is a duration on my UK contract.

My question is - is it possible to get this document changed and are there any issues regarding having an unlimited contract?

Thanks in advance.

The reason to have a UAE contract is for immigration/visa purposes.

Note that the gratuity is based on the "salary" amount so that it is best for a company to lower your "salary" and increase your allowance as when you leave your gratuity is lower.

What you are entitled to in the UAE is what your UAE contract states. Thus at the end of your stay you will get the gratuity calculated on your 8K salary only. Nothing you can do about that since you signed the new contract. Unless of course your UK contract was modified to include language to the effect that your compensation is written such and such and that at the end of the period you will get gratuity plus the remaining 8K. Nothing prohibits a company from compensating you for more than the "gratuity". That however is a matter of your contract with the Employer - and something you apparently did not do. It seems unlikely that since you are leaving the company that they will give you the "extra" 8K - If they do will have nothing to do with your UAE Contract but a "business" decision. Hardly worth "figthing" over I think - $2,100.00

With respect to the "open ended" contract, it is simply to avoid having to pay you the gratuity annnualy and to renegotiate with you.

my 2 fils. good luck on your new job.

With respect to the "open ended" contract, it is simply to avoid having to pay you the gratuity annnualy and to renegotiate with you.

THanks concord.

Please explain what you mean here?

How does gratuity differ between limited and unlimited contracts?


THanks..

You don't get a gratuity on an open ended contract. Fixed term contracts include an annual or bi-annual payment as agreed, you can then renegotiate the contract if you wish to stay on.

so as things stand, I would not be entitled to any gratuityif I leave at the end of my 12 month (UK) contract?

In which case, should I get the UAE contract changed to fixed term (limited) as it is in the UK version?

Info on End of Service Benefits from the Ministry of Labour - http://www.mol.gov.ae/Pages-en/document ... e10-en.htm

john smith wrote:so as things stand, I would not be entitled to any gratuityif I leave at the end of my 12 month (UK) contract?

In which case, should I get the UAE contract changed to fixed term (limited) as it is in the UK version?

For unlimited contracts: If you leave after one year you get 7 days (1/3). If you get fired you get 21 days!

I think after either 3 or five years then you get 21 days per annum.

Concord wrote:

john smith wrote:so as things stand, I would not be entitled to any gratuityif I leave at the end of my 12 month (UK) contract?

In which case, should I get the UAE contract changed to fixed term (limited) as it is in the UK version?

For unlimited contracts: If you leave after one year you get 7 days (1/3). If you get fired you get 21 days!

I think after either 3 or five years then you get 21 days per annum.

I have an unlimited contract but get paid a month gratuity (plus an annual bonus) for every year I work here. It is up to the individual employer.

Also they will pay to relocate my stuff to Australia (1 container).

I think every contract is relatively different.

The lesson: read and understand everything before signing or ask for help (again, before signing).