Dubai worker who completed two limited contracts with employer entitled to gratuity

I have completed two limited contracts with my employer totalling four years. I have given a letter to management stating that I will not be renewing after completing the current contract. Now my employer is not giving any gratuity to me, saying that they will not give gratuities to any employee who does not complete five years as per Labour Law. Am I entitled to a gratuity from the employer? And if they are not issuing an experience letter, what can I do? JT, Dubai

The wording of Article 138 of the UAE Labour Law is: “If an employee under a contract with limited period leaves his work at his own option before the end of the contract period he shall not be entitled to end of service gratuity unless the period of his continuous service exceeds five years”. In this case JT is not leaving of his own option, which refers to breaking service and the contract, but is simply not renewing the contract, as is his right. He is therefore entitled to receive an end of service gratuity in full for the four years he was employed. All employers are also obliged to provide an end of service certificate, free of charge, to any employee that requests it, as per Article 125 of Labour Law. JT should lodge a complaint with the Ministry of Human Resources and Emiratisation (helpline number 800 665).

Keren Bobker is an independent financial adviser with Holborn Assets in Dubai, with over 20 years’ experience. Contact her at keren@holbornassets.com. Follow her on Twitter at @FinancialUAE.

The advice provided in our columns does not constitute legal advice and is provided for information only.

pf@thenational.ae