x Abu Dhabi, UAEWednesday 26 July 2017

End of service gratuity computation on resignation

On your side: The National's resident advocate Keren Bobker answers a reader's question on end of service gratuity.

I have worked for my UAE employer for six years now and recently resigned as I want to return to Canada with my family. I had intended to look for a new job on my return, but I have been approached by the Canadian division of the same company to take on a role in Montreal. My question is this - as I will be working for the same company will I still be entitled to receive the end of service gratuity when I leave the job here? There will be a break of a few weeks but my immediate manager does not know how this is considered. Is there an issue with me resigning? CJ, Dubai

 

It does not matter that CJ will be working for the same company in another country. His employment contract in the UAE will come to an end and he will be entitled to receive the full amount of the gratuity.

Even if he goes to work for what is effectively the same employer in Canada, he will have a new contract under Canadian law and his current contract, written under UAE employment law, will have ceased. He has an unlimited contract so may resign at any time provided he gives written notice for the period specified in his contract.

The end of service gratuity is not reduced on resignation if someone has been with an employer for five or more years.

 

Keren Bobker is an independent financial adviser with Holborn Assets in Dubai. Contact her at keren@holbornassets.com