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UAE law: If I resign from my home country, how do I claim end of service benefits?

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Dubai - You and your employer may mutually agree to terminate your employment contract in this situation.

Published: Sun 8 Aug 2021, 11:55 AM

Updated: Sun 8 Aug 2021, 12:44 PM

  • By
  • Ashish Mehta

Question: I am employed with a Dubai firm, but am stranded in my home country (India) due to the ongoing travel restrictions. I have worked with the firm for over 30 years, and now am thinking of resigning. How can I claim my end of service benefits, including gratuity, without having to travel to the UAE?

Answer: Pursuant to your queries, we assume that you are employed by a mainland firm based in Dubai. Therefore, the provisions of Federal Law No. 8 of 1980 Regulating Employment Relations in the UAE (the 'Employment Law'), Ministerial Decree No. 765 of 2015 on Rules and Conditions for the Termination of Employment Relations (the 'Ministerial Decree No. 765 of 2015') and the provisions of Ministerial Resolution No. (739) of 2016 Concerning the Protection of Wages (the 'WPS Law') are applicable.

It should be noted that the Employment Law is silent related to an employee resigning while he or she is on vacation or outside the UAE. An employer and employee may mutually terminate an employment contract. This is as mentioned in Article 113 of the Employment Law as well as Article 1(I) (2) & II (1) of the Ministerial Decree No. 765 of 2015. Therefore, based on your long tenure, you and your employer may mutually agree to terminate your employment contract while you are outside the country.

As an employee, you are entitled to end of service benefits in accordance with Article 132 of the Employment Law.

In the UAE, the employer must pay the salaries of the employees through the Wage Protection System (WPS). This is in accordance with Article 1 (a) of the WPS Law, which states: "All establishments shall pay the wages of its employees on the date of the maturity thereof through the WPS or any other systems resolved in this regard, and the employee's wage shall be due as of the day following the expiration of the term on which the wage is specified in the contract. If this term is not specified in the contract, his wage shall be paid once at least every two weeks."

However, the WPS Law is silent on payment of end of service benefits. In the UAE, the employer must provide to the Ministry of Human Resources and Emiratisation, the proof of payments to its employees through the WPS. Thereby, the salaries and entitlements are transferred to the registered bank account of the employee in the UAE or deposited with an approved exchange house.

Based on this, once your work permit is cancelled upon your resignation, the employer may only transfer your end of service benefits to your bank account, which is registered with WPS.

Therefore, if you are not planning to return to the UAE, you may send a written instruction in original to your bank in the UAE to remit the credit balance in your account to your bank account in India. On the other hand, if you are planning to return to the UAE, you may withdraw your end of service benefits from here. Further, it is recommended that you withdraw your end of service benefits at the earliest as keeping your bank account inactive for a long duration in the UAE may lead to it being classified as dormant.

But, if your employer disagrees with you resigning while you are outside the UAE, it is recommended that you travel back. Currently, the UAE has eased the restrictions on inbound travel for returning residents. Upon your return, you may serve the notice period and obtain all payments due to you.

Ashish Mehta is the founder and Managing Partner of Ashish Mehta & Associates. He is qualified to practise law in Dubai, the United Kingdom and India. Full details of his firm on: www.amalawyers.com. Readers may e-mail their questions to: news@khaleejtimes.com or send them to Legal View, Khaleej Times, PO Box 11243, Dubai.



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