'Can my employer deduct from my gratuity?'

Question: I have worked with a company for eight years and am leaving soon. My basic salary is Dh1,200 ($326). How can I calculate my gratuity ? What are salary adjustments, as my employer says these total Dh1,350, so I get a lower amount. But I have only taken normal annual leave and have not been sick. How can they take money from me and what is the right amount I am owed? KM, Dubai Answer: The way in which the end-of-service gratuity is calculated is covered in the UAE labour law. Article 51 covers end-of-service benefits for full-time workers. This states: “The full-time foreign worker, who completed a year or more in continuous service, shall be entitled to end-of-service benefits at the end of his service, calculated according to the basic wage as per the following: A wage of 21 days for each year of the first five years of service; a wage of 30 days for each year exceeding such period; the foreign worker shall be entitled to a benefit for parts of the year in proportion to the period spent at work, provided that he completed one year of continuous service.” On the assumption that KM will have worked for exactly eight calendar years at the time of leaving service, on a basic salary of Dh1,350 per month, the standard calculation is a lump sum payment of Dh7,800. If the actual dates vary, even by just a week either way, the figure will need to be adjusted. A few minor deductions can be made from a gratuity payment but I would not expect that to be much on this salary. If an individual exceeds the annual amount of permitted paid sick leave or takes any days off in excess of the stated annual allowance, pay for these days can be deducted, per labour law; “the unpaid days of absence from work shall not be included in the calculation of the service term”. No employer is permitted to make any additional deduction such as for the cost of visa cancellation or any other costs incurred in employing someone, or when ending their employment. The amount in question seems high in comparison to the amount of the basic salary and if KM believes it to be incorrect, she should ask the company for an itemised list of these deductions and should not sign to accept a payment unless it is correct. If the deductions are incorrect, she can raise a complaint with the Ministry of Human Resources and Emiratisation. Contact details can be found at https://www.mohre.gov.ae/en/contact-us.aspx. The ministry is helpful in such cases and can intervene at no cost to the individual. Q: I am considering taking a job in Saudi Arabia and am talking to a recruiter. I asked about annual leave as my family will stay in Dubai and I will need as many days as possible to spend time with them. I was told it is “as standard” but that doesn’t mean anything and have conflicting information from friends, as one says 21 days and the other says he gets lot more. If I work for a private company near Riyadh, what annual leave would I be entitled to? MG, Abu Dhabi A: Employment in Saudi Arabia is governed by the labour law issued under Royal Decree No. M/51 dated 23/08/1426H, which corresponds to September 26, 2005. There have also been subsequent amendments. The subject of annual leave is covered in Article 109 which states: “A worker shall be entitled to a prepaid annual leave of not less than 21 days, to be increased to a period of not less than 30 days if the worker spends five consecutive years in the service of the employer.” As a new employee, MG will be entitled to a minimum of 21 days of annual leave on starting a new job. The period of 21 days is the legal minimum and it is not unusual for a company to offer more days for senior staff. Provided a company meets all the requirements of Saudi labour law as a minimum, they are permitted to offer more days of annual leave to employees. He should also be aware that an employer can specify when leave is taken with the same article stating: “The employer may set the dates of such leaves according to work requirements or may grant them in rotation to ensure the smooth progress of work. The employer shall notify the worker of the date of his leave in sufficient time of not less than 30 days.” If it is his intention to take ad hoc days, it would be best to get written confirmation that this is permitted before accepting the position. In addition to this statutory leave there are multiple public holidays, up to 11 days each year, although if these days fall on the weekend, Friday to Saturday, employees do not get days off in lieu, apart from for Saudi National Day on September 23. Keren Bobker is an independent financial adviser and senior partner with Holborn Assets in Dubai, with more than 30 years’ experience. Contact her at keren@holbornassets.com or at www.financialuae.com The advice provided in our columns does not constitute legal advice and is provided for information only