UAE – service benefits must be based on last salary: MoL

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Ministry warns firms against calculating allowance on first wage

Companies operating in the UAE must give their outgoing employees end of service benefits on the basis of their last monthly salary and firms which fail to do so are violating the law, the Ministry of Labour has said.

The Ministry was responding to a complaint by an Arab female doctor who was sacked by her private employing medical company and given end of service allowances that include the monthly salary she was paid when she first joined work.

In her letter to the Ministry during an open-day review of public complaints and applications in Abu Dhabi on Monday, the doctor said her first salary was far below the wage she was getting in the following years after she was given massive pay rises.

“Companies calculating the end of service benefits on the basis of the worker’s first salary listed in the job contract despite changes in that salary are involved in an illegal practice,” the Ministry said in its response.

“Such benefits must be based on the last monthly salary paid to the worker, who should prove this by producing the last salary statement.”

The Ministry asked the doctor to contact its enquiry section to be informed on the legal measures she will take against her employers to force them to pay all her dues.

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