Thinking of “Visa Cancellation And Final Settlement” in UAE? You need to be aware of your entitlements, especially your End of Service Benefits (EOSB). This is your final settlement under UAE labour law and it’s more than just your last salary. It’s a package you will receive when you leave the job.
Whether you are leaving voluntarily or Visa Cancellation, you need to know what you are owed. From private sector employee benefits to full time contract benefits, UAE has a lot in store for you. So don’t be in the dark about your dues, dive into the details of final settlement of UAE labour law and let’s get what you are entitled to.
Visa Cancellation And Final Settlement Payments
The calculation is based on your service and the type of termination. For less than a year of service you don’t get end-of-service benefits. But after a year you do. They are calculated on your last drawn salary minus “allowances”.
“You get 21 days salary for each year of the first 5 years and 30 days salary thereafter. If you are terminated the calculation changes”. You must know these details. The final settlement uae labour law is designed to protect your rights so you get what you are entitled to when your employment ends.
final settlement UAE labour law calculation
A worker who has completed 1 year or more in continuous service shall be entitled to end of service gratification upon termination of his service. Days of absence from work without pay shall not be included in the calculation of the service and the gratification shall be calculated as follows:
- If a worker has less than 1 year of service, he is not entitled to any gratification.
- If a worker has more than 1 year but less than 5 years of service, he is entitled to full gratification pay for 21 days salary for each year of service.
- If a worker has more than 5 years of service, he is entitled to full gratification of 30 days salary for each year of service after the first 5 years.
“In all cases the gratification shall not exceed two”years.”
| Service Duration | Entitlement | Calculation |
|---|---|---|
| Less than 1 year | None | No gratuity pay |
| 1-5 years | Full | 21 days’ salary for each year of work |
| More than 5 years | Full | 30 days’ salary for each year (after 5 years) |
| Total Gratuity | Limit | Total not to exceed the wage of two years |
Private Sector Worker End of Service Benefits Benefits
Continuing from the final settlement benefits, as a private sector worker in the UAE, you’re also entitled to specific benefits under the labour law. These benefits differ based on the type of contract you have and the length of your service.
The table below breaks down these benefits:
| Contract Type | Benefit |
| Unlimited | End-of-service gratuity |
| Limited | Severance pay |
| Over 1 Year | Repatriation expenses |
| Under 1 Year | No benefits |
If you’re on an unlimited contract you’ll get an end of service gratuity. If you’re on a limited contract you’ll get severance pay. If you’ve been with the company more than a year repatriation expenses are covered. Unfortunately if you’ve been with the company less than a year you get nothing.
End of service benefits for full time contracts
End of service benefits for full time contracts in the UAE differ for UAE nationals and foreign workers in the private sector. For Emirati employees the rules for pensions and social securities in the UAE apply.
According to Article 51 of the UAE Labour Law foreign workers in the private sector are entitled to end of service benefits as follows:
- A worker is entitled to a gratuity for each completed fraction of a year provided he has completed a continuous year of service.
- The end of service gratuity is calculated on the final basic salary. Allowances like housing, conveyance, utilities and furniture are not included in this calculation.
- If the worker has any outstanding dues to the employer, the employer can deduct that amount from the worker’s gratuity.
- All end of service entitlements must be disbursed within 14 days from the contract’s termination date.
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Voluntary Savings Scheme
In addition to these end of service benefits you also have the option to contribute to the “Voluntary Savings Scheme” a special pension scheme for UAE workers. This scheme has many benefits:
- Financial Security: This scheme provides a safety net for your retirement years. You can contribute regularly and have a stable income post retirement.
- You can decide the contribution amount as per your comfort and financial goals.
- Your employer may also contribute to the scheme and increase your savings.
- Tax Benefits:
- Contributions are tax deductible
- Investment growth is tax free.
Full-Time Contract Benefits
Under a full-time contract, you’re entitled to various benefits as part of the UAE Labour Law. These privileges range from paid annual leave to end of service gratuity. Given the law’s complexity, it’s essential to understand your rights to avoid any potential breaches.
Here’s a brief overview presented in a table:
| Benefit | Description |
| Annual Leave | You’re entitled to a minimum of 30 calendar days of paid leave after completing one year of service. |
| End of Service Gratuity | After completing one year of continuous service, you’re eligible for an end of service gratuity. This payment is based on your last basic wage and length of service. |
Other Employment Types Benefits
Now let’s look at the benefits for other types of employment under the UAE Labour Law. These aren’t as clear cut as full time contracts but still have benefits.
Here are the two:
- Part-Time Employment:
- Part timers get proportional end of service benefits based on the hours they worked.
- They’re also covered by hour limits and overtime pay rules.
- Temporary Employment:
- Temp workers get end of service benefits if they’ve been employed for a year or more.
- They’re also eligible for a pro-rata gratuity if their contract ends prematurely.
You’re protected no matter your employment type. It’s crucial to understand your rights and benefits within the UAE Labour Law.
UAE labour law termination benefits?
UAE Termination Benefits:
- End of service gratuity: 21 days’ salary/year (1st 5 years), 30 days thereafter, max 2 years.
- Unpaid wages & benefits: Owed by employer upon termination.
- Compensation instead of notice: If an employer terminates without notice (usually 30 days).
- Repatriation costs: Employer pays for foreign nationals upon termination.
- Resignation: No gratuity, but entitled to earned wages & benefits.
- Payment deadline: 14 days after termination.
- Complaints: File with Ministry of Human Resources & Emiratisation.
- Seek legal advice: For complex situations or further clarification.
visa cancellation and final settlement letter sample
UAE: Full time employee leaving job, two parties to cancel visa:
- The employee’s sponsor: This could be the company they work for or their sponsor (e.g., a family member).
- The company’s HR manager: They play a crucial role in facilitating the visa cancellation process.
To streamline this process, HR managers can create a standardized template or format that employees can use to submit their visa cancellation requests. This template should clearly outline the necessary information and documents the employee needs to provide.
Can I get my pending salary after visa cancellation?
Whether you can get your unpaid salary after visa cancellation depends on several things. Did your employer cancel your visa unfairly like through wrongful termination? That helps your case. What does your employment contract say about salary after visa cancellation? Some contracts address this. Lastly, local labour laws play a big role. Some countries guarantee full payment even after visa cancellation, others only partial or nothing at all.
How to get your salary after cancellation?
- Try to resolve it with your employer first. Explain your claim and ask for payment.
- Collect evidence like contracts, pay slips, and other relevant documents.
- Consider consulting a labour lawyer to know your rights and options.
- As last resort, file a complaint with labour department.
Your Company is delaying final settlement UAE?
By “Article 53 of the UAE Labour Law” ” Employers must settle final salary and entitlements, including gratuity, within 14 days of employment termination. This includes wages, accrued leave, unused vacation days and any outstanding amounts.
The Initiate Action:
- Open Communication: Talk to your employer directly. Request a clear explanation and a settlement date. Keep written records (emails, messages).
- Document Gathering: Collect your employment documents, including the contract, salary slips, leave records and communication regarding the delay.
Contact MOHRE:
- Ministry of Human Resources and Emiratisation (MOHRE): If talking to your employer doesn’t work, “file a complaint” with MOHRE online, through their app or at a service centre. They will investigate and intervene.
- Legal Expert: If MOHRE’s intervention doesn’t work, consult with a UAE labour law lawyer for guidance and court representation.
Conclusion
In conclusion, you should understand the final settlement of the UAE labour law. Whether you’re a private sector worker, on a full-time contract, or in other employment, there are benefits for you. Don’t overlook the Voluntary Savings Scheme. It’s crucial to be aware of your rights and entitlements. Knowing these can help you to negotiate better and ensure you’re receiving a fair deal.
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FAQS
What is the labour law for end of service in UAE?
Labour Law: UAE Labour Law (Federal Law No. 6 of 2022) applies to end of service. If you have served less than 1 year you are not entitled to any end of service benefit. If you have served more than 1 year but less than 5 years you are entitled to full end of service benefit of 21 days salary for each year of service.
If you have served more than 5 years you are entitled to full end of service of 30 days salary for each year of service after the initial 5 years of service.
How to calculate end of service?
Mainly gratuity (21 days salary/year, capped at 2 years). Add unpaid wages, accrued benefits and notice period.
how many days i can stay in UAE after employment visa cancelled?
You have 30 days standard grace period in the UAE after your employment visa gets cancelled. This means you have 30 days to settle your affairs and leave the country.
What is the new end of service law in UAE 2024?
New End of Service Law: No separate “end of service law” in 2024. UAE Labour Law (2022) applies.
What is the settlement process in UAE?
Settlement Process: Employers have to pay within 14 days. Employees can complain to Ministry of Human Resources and Emiratisation (MOHRE) if needed.
what happens when your visa is cancelled uae?
When your visa is cancelled in the UAE the situation will be as follows:
- Loss of Residency Rights: You are no longer allowed to stay in the UAE.
- Invalid ID: Your ID becomes invalid, you can’t access government services and transactions.
- Grace Period: 30 days grace period to leave the country without fines.
