Dubai Forums Dubai Expat Forums Dubai Expat Help Forum

I have recently left my employment of the last 5 years and 4 months and are having a bit of a battle with my previous company over the amount of settlement due for this part year. From what they have sent me it says "I'm entitled to 21 days remunerating for each year of the first 5 years of service & 30 days remuneration for each additional year or part thereof". So from this I expected that I'm entitled to 30 days remuneration but they are only offering to pay me 13.

Can anyone help me out with the current ruling please as I know the laws here change as often as the British weather.

the terms they have quoted you are correct as per the labour law - see below.

in otherwords they should pay you 21 x 5 plus a pro-rata amount for anything over 5 years (as you have not completed the full year, only 4 months).

My calculations are as follows 30/12 *4 = 10 days (plus the 105 above), a total of 115 days salary. bearing in mind of course that the salary is based on the net salary figure (without any allowances that you may recieve).

The relevant articles are:

Severance Pay
Article 132
A worker who has completed one or more years of continuous service shall be entitled to severance pay at the end of his employment. The days of absence from
work without pay shall not be included in calculating the period of service. The severance pay shall be calculated as follows:
1. 21 days' wage for each of the first five years of service.
2. 30 days’ wage for each additional year of service provided always that the aggregate amount of severance pay should not exceed two year's wage.

Article 133
A worker shall be entitled to severance pay for any fraction of a year he actually served, provided that he has completed one year of continuous service.

Article 134
Without prejudice to the provisions of laws that grant pensions or retirement benefits to employees in certain firms, severance pay shall be calculated on the basis of the wage last due for monthly, weekly and daily paid workers, and on the basis of the average daily wage referred to in Article 57 hereof for those paid on piecemeal.

The wage used as a basis for calculating severance pay shall not include whatever is given to the worker in kind, housing allowance, transport allowance, travel allowance, overtime pay, representation allowance, cashier’s allowances, children education allowance, allowances for recreational and social facilities, and any other bonuses or allowances.

Article 135
An employer may deduct any amounts owed to him by a worker from the latter's severance pay.

Article 136
For the purposes of Article 132, no severance pay shall accrue for the employment cases that preceded the enforcement of this Law except where the worker is a National. This, however, shall be without prejudice to any rights acquired by the worker under the repealed labour laws, the employment contract, or under any agreement, regulations or work rules of the firm. In the event of the worker's death, his severance pay shall be paid to his legal heirs.

Article 137
Where a worker under an indefinite term contract abandons his work at his own initiative after a continuous service of not less than one year and not more than three years, he shall be entitled to one-third of the severance pay provided for in the preceding article. Such a worker shall be entitled to two thirds of the said severance pay if his continuous service exceeds three years up to five years, and to the full severance pay if it exceeds five years.

Article 138
Where a worker under a definite term contract abandons his employment at his own initiative before the expiry of his contract period, he shall not be entitled to severance pay unless his continuous period of service exceeds five years.

Article 139
A worker shall forfeit entitlement to his entire severance pay in any of the following two cases:

(a) If he is dismissed from service for any of the reasons specified in Article 120 hereof or if he abandons his employment in order to avoid being dismissed in accordance with that Article.


(b) If he abandons his employment of his own accord, otherwise than in either of the two cases specified in Article 121 hereof, without notice (in the case of indefinite term contracts) or before completing five years of continuous service (in case of definite term contracts).

Thank you

Thank you