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Last-drawn basic salary basis of gratuity

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K.K. Sarachandra Bose is a Partner/ Corporate, Commercial and Contract Lawyer at Dar Al Adalah Advocates and Legal Consultants. Readers may email their questions to ktedit@emirates.net.ae or send them to Legal View, Khaleej Times, P.O. Box 11243, Dubai.

Published: Mon 19 Jul 2010, 11:35 PM

Updated: Mon 6 Apr 2015, 2:49 PM

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  • Compiled By Ahmed Shaaban

Q) I have been working as a teacher with a private school for 15 years on an unlimited contract. My present contract will be over by the next year. I want to resign on health grounds. My basic salary as per the contract is Dh1,200. I am drawing Dh4,500 per month. How is the gratuity calculated? Is it merely based on basic salary or total emoluments drawn last?

A) If your basic salary is Dh1,200, your gratuity shall be calculated on the basis of it. Gratuity shall not include what is given to the employee in kind, overtime pay, housing allowance, transport allowance, travel allowance or any other allowance. As per the UAE Labour Law, the gratuity shall be calculated as follows: 21 days wage for each year of the first five years; 30 days wage for each additional year on condition that the total of the gratuity does not exceed the wages of two years. The law also stipulates that an employee is entitled to a gratuity for the fractions of the year proportional to the part of the year he spent in work provided that he had completed one year in continuous service.

How to lift life ban imposed for no criminal action?

Q) My friend’s son was born and brought up in the UAE and studied here till Grade 12. He went to India for higher studies. As he was coming back in 2005, he was taken into police custody on charges of bringing in some contraband, which later proved to be a dried food item. By then, the officials had forced him to sign some documents in Arabic declaring that he had brought the contraband and a case was filed against him in the court. Later, he was cleared of all charges by the court. However, he remained in jail for three weeks and later deported with a life ban for no criminal act. Now, it is four years, and he wants to come back to the country to look after his parents. Please, advise.

A) Your friend should submit an application to the higher authorities in Abu Dhabi, including the immigration department, for lifting the ban stating the innocence of his son. He may also appeal to the Indian Ambassador in the UAE to intervene in the matter on the principle that ‘an injury caused to an individual is an injury caused to the state’ and the state to which the injured belongs to have a right to interfere in the matter.

Work permit for Omani border residents

Q) I work in Oman, but on the border of the UAE. I would like to know if it is possible to get a labour card or work permit of the UAE. My children have a residence visa in Oman, but they are studying in the UAE. My wife would like to work in the private school where my children are studying. Is it possible for her to get a work permit? Please, tell us what the procedure is and what the other alternatives are.

A) To the best of my knowledge, your wife will not be permitted to work in the UAE on the basis of the residence visa issued by the Sultanate of Oman. However, you may approach the Labour Department for clarification.



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